A coalition of financial services organizations pressed the Federal Housing Finance Agency (FHFA) to expedite its work toward meeting housing policy goals described in a recent executive order issued by President Donald Trump, particularly those aimed at modernizing property valuations.
These recommendations, detailed in a letter submitted to FHFA Director Bill Pulte on May 29, include priorities listed in Trump’s EO, titled “Promoting Access to Mortgage Credit,” seeking to improve the appraisal process to make mortgage lending faster, less expensive and more efficient, while still maintaining reliable property valuations.
“Our organizations agree that President Trump’s EO presents an opportunity for appraisal modernization to improve the quality, efficiency and integrity of residential property valuation,” the trade groups wrote. “As a result of the dominant role that Fannie Mae and Freddie Mac (the GSEs) play in the mortgage marketplace, and the expanded use of alternative valuation methodologies that has occurred over the last few years, FHFA and the GSEs are in an optimal position to contribute to the transformation of appraisal policies, practices and processes.”
The organizations asserted the urgency of addressing the following priorities:
- Modernizing appraisal rules and regulations, as well as guidance, to permit the expanded use of alternative valuation models, desktop and hybrid appraisals and artificial intelligence valuation tools;
- Simplifying the appraiser qualification requirements used by the GSEs; and
- Reducing appraisal requirements for low-risk transactions, including low loan-to-value refinancing and small-balance loans, and set clear appraisal timelines.
The letter was endorsed by the American Bankers Association, America’s Credit Unions, the Broker Action Coalition, Community Home Lenders of America, the Housing Policy Council, the Independent Community Bankers of America, the Mortgage Bankers Association and the National Association of Mortgage Brokers.
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