Joint Letter to the FHA on Single Family Minimum Property Requirements

Dear Assistant Secretary Gormley,

The underlying financial services trade organizations appreciate the Federal Housing Administration's (FHA) request for input on the Single-Family Minimum Property Requirements (MPRs) to implement the President's March 2026 Executive Order, "Promoting Access to Mortgage Credit." In response, we reaffirm our previous recommendation that FHA align with the standards established by Fannie Mae and Freddie Mac (the GSEs). This change would streamline the FHA financing process, making it more efficient and less expensive for lenders to produce, and consumers to obtain, an FHA loan.

Our organizations are encouraged that FHA is seeking information to improve the collateral valuation processes, including changes to the minimum property requirements. We particularly appreciate the agency's receptivity to aligning FHA policy and practice with industry-wide collateral standards.

While we share FHA's "safety and soundness" policy objective, in practice, the FHA requirements hinder a prospective borrower's access to an FHA loan product. We have observed over the years, based on the experience of many stakeholders across the housing finance system, that the FHA MPRs are one of the most significant impediments to the utilization of FHA financing by prospective homebuyers.

Download the joint comment letter to read the full text.