HUD/FHFA Issue New Guidance to Protect Borrowers from Appraisal Bias

May 2, 2024

 

New Reconsideration of Value policy requires lenders to provide a pathway for borrowers to request reviews of home appraisals.

Wednesday, May 1, 2024, the U.S. Department of Housing and Urban Development (HUD), and the Federal Housing Finance Agency (FHFA), announced new policies designed to address potential bias in home appraisals. The new requirements for lenders participating will enable borrowers to request a reconsideration of value of their property if they believe that the appraisal was inaccurate or biased. The Reconsideration of Value policy represents months of collaboration with the Federal Housing Finance Agency to develop an aligned approach for both FHA-insured mortgages and those purchased or guaranteed by Fannie Mae and Freddie Mac.

Read the HUD and FHFA announcements.