DOGE restricting FHA ROVs and 2nd appraisals

[Dublin ohio]

Right? I know I'm dreaming here but.... it almost sounds as if the more competent, seasoned appraiser needs to be retained for appraisals by clients instead of the cheap, wet behind the ears, Newbie.

IMHO. When they reduced the qualifications to do FHA, they opened the floodgates for skippy

 

[J Grant]

IMHO. When they reduced the qualifications to do FHA, they opened the floodgates for skippy

What blew it up was when they dropped the round robin FHA panel and let the lender assign the appraiser - It was called "lender select." Now, the AMC can pick the appraiser instead and subject them to the same pressure only on the back end.

It is just one more saga in the sordid story of a system that punishes an appraiser who does not hit value (the slick term the entities use is for that is appraisals can cause "friction.").

 

[Elliott]

Perplexity:

"Recent changes to the Federal Housing Administration (FHA) policies on Reconsideration of Value (ROV) and second appraisals have been driven by a combination of regulatory, market, and political factors:
Reasons for ROV Policy Implementation
1. Addressing Appraisal Bias: The Biden administration introduced ROV policies in 2024 as part of efforts to combat alleged bias in the appraisal process. These policies aimed to provide borrowers the ability to challenge appraisals they believed were inaccurate or discriminatory, aligning with broader fair housing initiatives like the PAVE report.
2. Standardization and Consumer Rights: The policies sought to create consistent standards for appraisal reconsiderations across FHA-insured mortgages and other agencies, ensuring borrowers had clear pathways to request ROVs and lenders were equipped to handle such requests.
Reasons for Rescinding ROV Policies
1. Regulatory Rollback: In March 2025, the Trump administration rescinded the ROV policies, citing an executive order aimed at reducing regulatory burdens. FHA stated that these policies created unnecessary barriers and increased financial burdens for lenders and consumers.
2. Industry Pushback: Critics argued that the ROV requirements were redundant, as existing mechanisms already addressed appraisal undervaluations. Industry groups supported the rollback, claiming it would simplify processes and reduce compliance costs.
3. Focus on Economic Stability: The rescission aligns with broader goals to foster economic stability by eliminating regulations perceived as hindering lending practices and housing market efficiency.
Second Appraisals
Second appraisals were permitted under FHA guidelines when significant defects or disputes arose regarding the initial appraisal. However, the rescission of ROV policies may limit standardized processes for addressing such disputes, reverting to prior practices.

In summary, FHA’s recent policy changes reflect shifts in priorities between administrations—balancing fair housing concerns with efforts to streamline regulations and reduce industry burdens."

 

[glenn walker]

Right? I know I'm dreaming here but.... it almost sounds as if the more competent, seasoned appraiser needs to be retained for appraisals by clients instead of the cheap, wet behind the ears, Newbie.

Right? I know I'm dreaming here but.... it almost sounds as if the more competent, seasoned appraiser needs to be retained for appraisals by clients instead of the cheap, wet behind the ears, Newbie.

Yes your dreaming again...lol

 

[J Grant]

Perplexity:

"Recent changes to the Federal Housing Administration (FHA) policies on Reconsideration of Value (ROV) and second appraisals have been driven by a combination of regulatory, market, and political factors:
Reasons for ROV Policy Implementation
1. Addressing Appraisal Bias: The Biden administration introduced ROV policies in 2024 as part of efforts to combat alleged bias in the appraisal process. These policies aimed to provide borrowers the ability to challenge appraisals they believed were inaccurate or discriminatory, aligning with broader fair housing initiatives like the PAVE report.
2. Standardization and Consumer Rights: The policies sought to create consistent standards for appraisal reconsiderations across FHA-insured mortgages and other agencies, ensuring borrowers had clear pathways to request ROVs and lenders were equipped to handle such requests.
Reasons for Rescinding ROV Policies
1. Regulatory Rollback: In March 2025, the Trump administration rescinded the ROV policies, citing an executive order aimed at reducing regulatory burdens. FHA stated that these policies created unnecessary barriers and increased financial burdens for lenders and consumers.
2. Industry Pushback: Critics argued that the ROV requirements were redundant, as existing mechanisms already addressed appraisal undervaluations. Industry groups supported the rollback, claiming it would simplify processes and reduce compliance costs.
3. Focus on Economic Stability: The rescission aligns with broader goals to foster economic stability by eliminating regulations perceived as hindering lending practices and housing market efficiency.
Second Appraisals
Second appraisals were permitted under FHA guidelines when significant defects or disputes arose regarding the initial appraisal. However, the rescission of ROV policies may limit standardized processes for addressing such disputes, reverting to prior practices.

In summary, FHA’s recent policy changes reflect shifts in priorities between administrations—balancing fair housing concerns with efforts to streamline regulations and reduce industry burdens."

The goobledly gook spewing from DOGE looks as bad or worse than what it was trying to correct.

 

[glenn walker]

HUD has grown as it's market share has declined dramatically, but rather than scale down and cut costs under Biden they expanded more away from real estate and housing into a race and gender and DEI program to go after appraisers and brokers--lenders using Federal Housing and Race laws.

The original mandate was lost 15 years ago and it probably needs closed down. Today HUD is a giant bloated sister to the department of education.

The private money center banks and lenders can replace it just like local communities can operate their own schools.

 

[Elliott]

Perplexity:

"As of 2025, the employee counts for Freddie Mac, Fannie Mae, and the Federal Housing Administration (FHA) are as follows:
• Freddie Mac: Approximately 8,103 employees as of 2024.
• Fannie Mae: 8,200 employees as of December 31, 2024.
• FHA: The exact number is unclear. FHA operates under the U.S. Department of Housing and Urban Development (HUD), which had about 9,600 employees in 2023. However, recent reports indicate planned layoffs of up to 40% of FHA staff due to federal downsizing efforts"

 

[djd09]

1998: Statement by the late-Gale Cincotta (a long-time community activist) made before the House Subcommittee on Housing and Community Opportunity, April 1, 1998

We have been fighting abuse, fraud, and neglect of the FHA program that has destroyed too many neighborhoods and too many families’ dreams of homeownership for more than 25 years….The FHA program has a national default rate 3 to 4 times the conventional market, and in many urban neighborhoods it routinely exceeds 10 times. In addition, the FHA program is hemorrhaging money….

....

 

[Mejappz]

Perplexity:

"As of 2025, the employee counts for Freddie Mac, Fannie Mae, and the Federal Housing Administration (FHA) are as follows:
• Freddie Mac: Approximately 8,103 employees as of 2024.
• Fannie Mae: 8,200 employees as of December 31, 2024.
• FHA: The exact number is unclear. FHA operates under the U.S. Department of Housing and Urban Development (HUD), which had about 9,600 employees in 2023. However, recent reports indicate planned layoffs of up to 40% of FHA staff due to federal downsizing efforts"

Each of these corrupt organizations should not have no more than 1,000 employees. Even that number seems excessive.

 

[djd09]

...