FHA should align minimum property requirements with Fannie, Freddie

Reaffirming the recommendation that the Federal Housing Administration (FHA) align Single-Family Minimum Property Requirements (MPRs) with government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, America’s Credit Unions joined organizations in a comment letter Monday. The FHA issued the request for input in response to the Executive Order “Promoting Access to Mortgage Credit” seeking information to improve collateral valuation processes, including changes to the minimum property requirements.

Specifically, the organizations:

• Request that FHA adopt the GSE property condition rating system along with the GSE minimum property requirements. This would replace the current “subject to repair” MPR standards that apply regardless of the overall condition or habitability of the property; and
• Include a table that presents summaries of the current MPRs for FHA, Fannie Mae, Freddie Mac, and VA for comparison. Also included are thoughts on which current industry standard FHA should consider adopting.

America’s Credit Unions will continue to engage with FHA and other federal agencies on implementing the Executive Order.

Read the letter