FHA Made Field Reviews Optional. Should You Drop Them?
On June 23, 2026, the FHA published its latest round of deregulatory action: 14 new Mortgagee Letters aimed at cutting costs and easing compliance burden across the Single Family program. Released as part of HUD's National Homeownership Month recognition, this batch brings the total to 150+ streamlining measures since the start of the Trump administration.
What Changed?
● Appraisal field reviews are now optional — previously required on at least 10% of origination/underwriting QC samples. At $425 per review, FHA says this saves the industry ~$3.3M a year.
● 203(k) rehab loans get more flexibility — max draw requests go from two to four per contractor, plus clarified disbursement rules for Limited and Standard 203(k).
● Several QC and approval requirements are trimmed — permanent EPD exemption for disaster-area loans, fewer redundant documentation/access rules, and a relaxed "officer in charge" standard.
● Form HUD-92900-B is gone — the Important Notice to Homebuyers form is no longer required at closing.
● Loss mitigation policy update — clearer TPP failure conditions, re-reviews limited to genuine changes in circumstances, and borrowers can now make TPP payments early without penalty.
What Do We See?
At SCA, we're seeing our clients still want to keep the field appraisal review. "Optional" isn't the same as "unnecessary." FHA lowering the requirement doesn't lower the bar for what prudent QC looks like, it just means lenders now have to set that bar themselves instead of having it set for them. There's also a practical wrinkle: even if FHA no longer mandates it, investors and aggregators may still expect or require field reviews as part of their own overlays. "Optional at the FHA level" doesn't necessarily mean "optional across the board."
Before you adjust your QC sampling plan, ask yourself: is this decision backed by your own defect data, or just by the fact that FHA no longer requires it? If you're not sure, don't guess. Whether we're running your QC or supporting your in-house team, SCA can help you find the answer. Reach out to us today!
