On July 10, 2025, the HUD and the OMB announced the termination of “burdensome” policies introduced under the Property Appraisal and Valuation Equity (PAVE) task force. The PAVE task force is an interagency group of 13 federal agencies formed during the Biden administration to address alleged discrimination in the appraisal process.
As part of the PAVE task force, members were directed to issue guidance on anti-discrimination obligations, review policies and practices, and issue new policies focused on “eliminating bias and advancing equity in home appraisals.” The HUD terminated policies related to Reconsideration of Value and Appraisal Fair Housing Compliance, which include the following:
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
As stated in the HUD’s press release, “The termination of specific policies eliminates unnecessary regulatory hurdles imposed on lenders, appraisers, and other program participants, which will allow HUD’s Federal Housing Administration (FHA) to better serve American homebuyers and homeowners.”
Read the HUD’s press release here.