The Federal Housing Administration (FHA), a division of the Department of Housing and Urban Development (HUD), is requesting public feedback on Minimum Property Requirements (MPR) in relation to FHA’s Single Family mortgage insurance programs. In order to shape future policy modernization that promotes sustainable homeownership options, this Request for Information (RFI) seeks input from the market.
Section 203 of the National Housing Act authorizes the Secretary to insure single family mortgages upon such terms as the Secretary may prescribe. Since the Single Family Mortgage Insurance Program’s inception, the Federal Housing Administration (FHA) has required, as a condition of eligibility, that all residential properties securing insured mortgages satisfy certain Minimum Property Requirements (MPRs). These MPRs are designed to ensure that FHA-insured mortgages are collateralized by properties that are safe, sound, and secure, thereby protecting borrowers and the fiscal integrity of the Mutual Mortgage Insurance Fund (MMIF). FHA’s MPRs are detailed throughout FHA’s Single Family Policy Handbook 4000.
Separately, the Secretary must set minimum property standards for newly built residential housing, excluding manufactured housing, under section 526 of the National Housing Act (12 U.S.C. 1735f-4). FHA’s Minimum Property Standards (MPS) are specifically required by law and apply to new construction, in contrast to the administratively created MPRs. They are designed to guarantee the safety, soundness, and security of newly built homes that are secured by FHA-insured mortgages, as well as their compliance with relevant minimum energy efficiency standards. The FHA’s MPS are outlined in 24 CFR part 200, subpart S. Further clarification on these standards can be found in the Single Family Policy Handbook 4000.1. This RFI does not address FHA’s MPS.
Determining whether the property securing the FHA-insured mortgage satisfies FHA’s MPRs is the responsibility of the FHA-approved mortgagee. The mortgagee must make sure that the required repairs are finished before the mortgage is eligible for FHA insurance if an appraisal report or inspection by a qualified body reveals issues that preclude the property from fulfilling FHA’s property acceptance requirements. By means of this procedure,
In order to ensure that properties securing FHA-insured mortgages fulfill the agency’s baseline requirements for safety, soundness, and security, mortgagees are the main method via which FHA’s property standards are enforced at the loan level.
The last significant update to the MPRs and the related repair requirements occurred more than 20 years ago, although FHA’s MPRs have frequently adjusted to developments in the housing market over the years. FHA moved away from the historical repair emphasis on minor cosmetic property flaws and normal wear and tear in that revision, which was originally disclosed in Mortgagee Letter 2005-48. To better match the program with contemporary industry practices, FHA acknowledges the advantages of updating and simplifying MPRs. FHA acknowledges that a significant portion of FHA appraisals include a requirement for property inspection or repair. However, Government Sponsored Enterprises (GSEs) also uphold the standards for structural integrity, soundness, and property safety.
According to certain stakeholders, the ensuing repair and reinspection rates are far lower than those of FHA. In certain situations, repairs or further inspections could be wise, but they come with actual expenditures that might not always result in a corresponding improvement in the quality and/or safety of the home. Furthermore, some property owners may be reluctant to accept offers from borrowers looking for FHA-insured financing due to this perception of exorbitant prices.
In order to provide a contemporary approach to collateral risk management procedures, FHA is considering reviewing its MPR policies. To make sure that all stakeholder viewpoints are taken into account, FHA is requesting feedback on this subject.
Note: Comments are requested on or before June 29, 2026. Late-filed comments will be considered to the extent practicable.
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