FHA Extends Implementation Date for Recent Appraisal Review and Reconsideration of Value Guidelines

On August 6, 2024, in Mortgagee Letter (ML) 2024-16, the Federal Housing Administration (FHA) announced an extension for the implementation of recent Appraisal Review and Reconsideration of Value (ROV) guidelines through and to October 31, 2024. The guidelines, further detailed in our blog post “FHA Announces New Guidelines Allowing Borrowers to Challenge Appraisals,” enhance FHA’s current policy on standards for appraisal reviews, and provide specific requirements related to borrower-initiated ROV requests. In explaining the implementation extension date, FHA noted that it recognized “the challenges for Mortgagees to operationalize this important policy update properly and effectively within the original 120-Day time frame. Therefore, FHA is providing additional time beyond the previously announced effective date to ensure Mortgagees have sufficient time for implementation.”