DOGE restricting FHA ROVs and 2nd appraisals

[Bobby Bucks]

Sounds like a lender problem to me, I don’t have a dog in that fight.

 

[CGinMN]

GSEs require very similar processes as FHA, and they have yet to rescind (yet). Regardless, in the meantime, lenders have already implemented these processes so they might keep them in place.

Even if an underwriter identifies an obvious valuation issue, they can no longer initiate a review on their own—eliminating an important quality control measure.

Lenders are no longer required to proactively monitor appraisal quality, leaving more room for poor valuation practices to persist unchecked.

I don't see how this is true. They are just reverting to the prior policies.

 

[residentialguy]

Since all you have to do is be a CR in order to be qualified to do FHA appraisals, the skippies have already been doing FHA appraisals. So no real change when it comes to the skippies.

Now they can do it without fear of getting caught.

 

[TerryRohrer]

It is a mosh pit of exhausting, soul-draining, mind-numbing gibberish - all of it.

.

Agreed!

 

[residentialguy]

GSEs require very similar processes as FHA, and they have yet to rescind (yet). Regardless, in the meantime, lenders have already implemented these processes so they might keep them in place.

I don't see how this is true. They are just reverting to the prior policies.

It's already a done deal.

 

[residentialguy]

Good read on it

ATA - FHA 2025 Critical Changes

The FHA Mortgagee Letter 2025-08 references specific sections from the FHA Single Family Housing Policy Handbook (Handbook 4000.1). Below is a breakdown of what these sections refer to in practical terms, citing the actual language from the handbook where available. Historical Context of FHA ROV ...

docs.google.com

 

[TerryRohrer]

Woody Fincham summed it up nicely:

Even if an appraisal is widely acknowledged to be flawed but is not
factually erroneous, a second appraisal is not permitted.

Where?

 

[residentialguy]

Pdf of the doc

 

[residentialguy]

Sounds like a lender problem to me, I don’t have a dog in that fight.

Til you refinance or sell your house anyway

 

[Dublin ohio]

Now they can do it without fear of getting caught.

As if that was ever a factor when it came to skippies