On May 29, the Federal Housing Administration (FHA) published a request for information in the Federal Register regarding single-family minimum property requirements (MPR) which have “long supported the safety and soundness of the single-family homes the agency insures.”

According to the FHA, “These standards have not undergone a comprehensive update in over two decades and no longer reflect current industry practices. FHA MPRs are dated, creating unnecessary burdens that increase housing costs, discourage industry participation, limit access to FHA financing — particularly for first time and low- to moderate-income American homebuyers — and outweigh the benefits they provide.”

The FHA is asking for comment on ways to modernize and streamline program requirements and is interested in receiving input on the following topics:

• What are the advantages and/or disadvantages of FHA’s current MPRs?
• How could FHA streamline and/or simplify its MPR policies?
• Are there important factors FHA should consider when modernizing MPR policies?
• What specific FHA MPRs are no longer applicable or necessary?
• Do current FHA MPRs adequately protect borrowers utilizing FHA-insured single family mortgage programs to finance a home?
• Are MPRs clearly communicated in FHA policies?
• Is the FHA-approved appraiser’s scope of work to identify MPR deficiencies aligned with modern appraisal practices?

Comments are due June 29.