HUD and OMB Announce Termination of Policies Introduced Under PAVE Task Force

On July 10, 2025, the U.S. Department of Housing and Urban Development (HUD) and the Office of Management and Budget (OMB) announced the termination of some policies introduced under the Biden era's Property Appraisal and Valuation Equity (PAVE) task force, including:

• ML 2024-16, Extension to the Effective Date of Appraisal Review and Reconsideration of Value (ROV) Updates
• ML 2024-07, Appraisal Review and Reconsideration of Value
• ML 2021-27, Appraisal Fair Housing Compliance and Updated General Appraiser Requirements

While the July 10 announcement provides more language around the reasoning behind these changes, these policies were initially rescinded on March 19, 2025 in Mortgagee Letter (ML) 2025-08. Read the Washington Report on the initial announcement.

For the first two items, on Reconsiderations of Value (ROVs), FHA has reverted to published language prior to implementation of a uniform process for borrower initiated ROVs that aligns with published Fannie Mae and Freddie Mac policies. However, borrowers are still entitled to request an ROV if they have concerns about the appraisal and should contact their lender to obtain information on initiating a request.

NAR supports a consistent framework for the reconsideration of real estate valuations and believes that consumers should be able to provide additional information about a property, ask questions, or request errors be corrected in a standardized way.

The Appraisal Fair Housing Compliance ML was rescinded because the Uniform Standards of Professional Appraisal Practice (USPAP), which appraisers are required to adhere to per FHA policy, was updated in 2024, resolving the concerns the ML intended to address.

While HUD has removed the Biden-era standards, the department confirmed that existing fair housing laws remain fully in effect. The Fair Housing Act and Equal Credit Opportunity Act, which prohibits discrimination in homebuying and lending, will continue to be enforced.