FHA rescinds 12 policies as Trump pushes to cut red tape

In practice, the FHA is formally retracting a series of rules implemented via Mortgagee Letters, which had governed various aspects of the loan origination process from the initial application through the issuance of FHA insurance endorsements.

Regarding appraisal protocols, HUD said it’s eliminating “antiquated and burdensome steps” to better align the FHA process with broader industry standards. This shift builds on investments made during the first Trump administration in the FHA Catalyst platform, a cloud-based system that enhances collateral valuation analytics.

The changes will also permit lenders to use part-time staff for direct endorsement underwriter eligibility, provided they remain permanent employees of a single lender and underwriting functions are not contracted…