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Housing Agencies Release New Requirements to Reduce Appraisal Bias

NCUA eyeing executive compensation reporting for federal credit unions

Posted on: 7/10/2024
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Posted on: 7/10/2024
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Supreme Court Decision Extends Period for Administrative Law Challenges

Posted on: 7/10/2024
The six-year period allowed for lawsuits against the U.S. government under the Administrative Procedure ...
 

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Posted on: 7/10/2024
In a 6-3 decision, the U.S. Supreme Court overturned the longstanding “Chevron deference,” ...
 

CFPB Issues Rule Proposing the Removal of Medical Bills from Credit Reports

Posted on: 6/12/2024
The CFPB has proposed a rule to prohibit lenders from considering medical debt and remove medical bills ...
 

FinCEN Releases FY 2023 Bank Secrecy Act Data

Posted on: 6/12/2024
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Treasury Department Seeks Comment on AI Use in Financial Services

Posted on: 6/12/2024
The Treasury Department has issued a request for information on the use of artificial intelligence in ...
 

House Version of 2024 Farm Bill Goes Through Markup

Posted on: 5/29/2024
The Farm, Food and National Security Act (H.R. 8467), commonly referred to as the 2024 Farm Bill, was ...
 

FHA Announces Cybersecurity Reporting Requirement for Approved Lenders

Posted on: 5/29/2024
The Federal Housing Administration has issued a new policy requiring FHA-approved lenders to report ...
 

CFPB to Define Buy Now, Pay Later Providers as Credit Card Providers

Posted on: 5/29/2024
The CPFB has issued an interpretive rule to define lenders who provide buy now, pay later products as ...
 

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The Federal Housing Administration and Federal Housing Finance Agency have announced new policies that will allow borrowers to challenge property appraisals if they believe the appraisals were inaccurate or biased.

FHA’s new requirement for lenders participating in its single-family mortgage program will enable borrowers to request a re-assessment if they believe bias was involved. At the same time, FHFA’s new reconsideration of value, or ROV, policies at Fannie Mae and Freddie Mac will let borrowers request that an appraiser re-assess the appraised value of a property due to potential appraisal reporting deficiencies or inappropriate selection of comparable properties. The policies will take effect later this year.

In 2023, FHFA and the Department of Housing and Urban Development, which oversees FHA, established a working group to develop consistent ROV standards. Among other things, the FHA policy will require lenders to disclose to borrowers that they may request an ROV with instructions that explain the process, including what information will be required from a borrower and the expected ROV processing times. Also, underwriters should be trained to identify and remedy appraisal deficiencies, including racial and ethnic bias. The Fannie and Freddie policies have similar requirements.

“We know that biased home appraisals not only disproportionately harm homeowners of color, but stunt economic opportunity for the communities we serve,” HUD Acting Secretary Adrianne Todman said. “Today, we are announcing a new step in our work to root out racial and ethnic bias in home valuations, which will give borrowers greater ability to have their home valuation reconsidered.”
 
To read the HUD/FHA announcement, visit: https://www.hud.gov/press/press_releases_media_advisories/HUD_No_24_096
 
To read the FHFA announcement, visit: https://www.fhfa.gov//Media/PublicAffairs/Pages/FHFA-Announces-Enterprise-Reconsideration-of-Value-Policies.aspx
 

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