AWACSMortgage compliance intelligence from Flightline

FHA · Mortgagee Letter ML 2026-10 · Published

Updates to FHA Quality Control Requirements for Appraisal Field Reviews

FHA has removed the requirement for Mortgagees to obtain appraisal field reviews on at least 10 percent of origination and underwriting quality control reviews. Appraisal field reviews are now optional, allowing Mortgagees to determine review methods based on risk.

Review recommendedIn effect nowChecks passed· adjusted automaticallyRead the letter ↗ (opens in a new tab)

Loan impact

From the letter text · verified

Applies to: All FHA-insured mortgage programs selected for origination and underwriting quality control review.

Addressed to
All FHA-Approved Mortgagees
Investor
FHAFrom the publisher, not quoted from the text
Programs
FHAFrom the publisher, not quoted from the text
Affected area
RecordsGuide Section V.A.3.c.ii(C)
Affected documents
Residential Appraisal Field Review Report; appraisal report
Exceptions
Streamline Refinances where the Mortgagee was not required to order a new appraisal
Applicability confidence
Verified: every row taken from the source text is supported by it; rows marked "from the publisher" are not quoted
Supporting quotes from the letter
  • exceptions“Mortgagees are not required to perform the property and appraisal QC review (V.A.3.c.ii(C)(1)(a)) for Streamline Refinances where the Mortgagee was not required to order a new appraisal for a Property financed with an FHA-insured Mortgage.”
  • affected areas“The Mortgagee must retain all results from the property and appraisal QC reviews required by this section, including any reports from valuation tools or appraisal field reviews.”
  • guide sections“This ML: • updates requirements in Property and Appraisals (V.A.3.c.ii(C)).”
  • affected documents“Field reviews must be performed by Appraisers listed on the FHA Appraiser Roster and must be reported on the applicable Residential Appraisal Field Review Report form or report.”

What changed

From the letter text · Section V.A.3.c.ii(C)
RequirementPreviouslyNow
Appraisal field reviews for quality controlRelaxedPreviously: Mortgagees were required to obtain appraisal field reviews on at least 10 percent of origination and underwriting QC reviews.Appraisal field reviews are optional and Mortgagees may obtain them if needed to adequately assess the appraisal report.

What to do

AWACS interpretation · not source language

What to review: Review quality control policies to determine whether to adopt the optional flexibility removing the at least 10 percent appraisal field review requirement.

QC implications

  • Quality control teams may update review plans to make appraisal field reviews optional instead of maintaining the at least 10 percent requirement.
  • When appraisal field reviews are obtained, quality control should confirm they are completed by appraisers on the FHA Appraiser Roster and documented on the applicable Residential Appraisal Field Review Report form or report.
  • Quality control should ensure retention of all property and appraisal review results, including any appraisal field review reports or valuation tool records.

Source and record

Version 1 · archived

Checks

  • Source verified: Passed

    The document ID, link and publication date match the official source.

  • Quotes match the source: Passed, adjusted automatically

    Every quoted passage appears word for word in the official document.

    • A detail the source does not support was removed or adjusted

  • Requirements backed by the source: Passed

    Anything marked required is backed by the requirement language and dates in the source.

  • In scope: Passed

    The document is about residential mortgage lending.

  • Format and labels: Passed, adjusted automatically

    The record follows the AWACS format and uses its standard labels.

    • A detail the source does not support was removed or adjusted