The Federal Housing Administration (FHA) and the Department of Housing and Urban Development (HUD) recently unveiled new guidance aimed at addressing appraisal bias in the mortgage industry. This move is part of a broader effort to provide borrowers with additional avenues for challenging appraisals that may be inaccurate or unfairly impact the outcome of their mortgage application. The new guidance is expected to have a significant impact on the lending landscape, as it will empower borrowers to take proactive steps to address potential appraisal discrepancies.
Key points from the FHA and HUD’s announcement on combating appraisal bias include:
– Introduction of new guidelines to help borrowers seek a reconsideration of value for appraisals that may be biased or inaccurate
– Emphasis on providing borrowers with more options for challenging appraisal results that could negatively impact their mortgage approval
– Efforts to increase transparency and accountability in the appraisal process to ensure fair and accurate valuation of properties
– Overall goal of promoting equality and fairness in mortgage lending practices through the mitigation of appraisal bias.
You can read this full article at: https://www.housingwire.com/articles/hud-and-fha-announce-new-appraisal-bias-protections/(subscription required)
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