source:
  type: regulation
  id: hud-ml-2026-10
  authority: HUD Mortgagee Letter 2026-10 — Updates to FHA Quality Control Requirements for Appraisal
    Field Reviews
  description: HUD Mortgagee Letter 2026-10 (June 23, 2026) — Updates to FHA Quality Control Requirements
    for Appraisal Field Reviews. Removes the mandatory 10-percent appraisal field review requirement and
    makes field reviews an optional/alternative component of appraisal QC under Handbook 4000.1 Property
    and Appraisals (V.A.3.c.ii(C)); effective immediately. Full verbatim text captured section-by-section
    from the HUD source PDF.
obligations:
- id: hud-ml-2026-10-purpose
  canonical_id: hud-ml-2026-10-purpose
  section: HUD ML 2026-10 — Purpose
  type: reference
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - full-text
  - origination
  - quality-control
  - appraisal
  - field-review
  - ml-2026-10
  primary_source:
    tier: 1
    authority: HUD Mortgagee Letter 2026-10 — Updates to FHA Quality Control Requirements for Appraisal
      Field Reviews — Purpose
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/default/files/hudclips/documents/2026-10hsgml.pdf
    snapshot_id: bf207c802a64b86c
    fetched_at: '2026-07-13T02:16:18Z'
    content_hash: sha256:6f94b7e5d2e5caf48e545f6875d78a5ae254ecbf68e6d68b0721a1bc8f915000
    paragraph_quote: This Mortgagee Letter (ML) updates FHA quality control (QC) requirements to allow
      greater flexibility and alternatives to appraisal field reviews.
- id: hud-ml-2026-10-effective-date
  canonical_id: hud-ml-2026-10-effective-date
  section: HUD ML 2026-10 — Effective Date
  type: reference
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - full-text
  - origination
  - quality-control
  - appraisal
  - field-review
  - ml-2026-10
  primary_source:
    tier: 1
    authority: HUD Mortgagee Letter 2026-10 — Updates to FHA Quality Control Requirements for Appraisal
      Field Reviews — Effective Date
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/default/files/hudclips/documents/2026-10hsgml.pdf
    snapshot_id: bf207c802a64b86c
    fetched_at: '2026-07-13T02:16:18Z'
    content_hash: sha256:6f94b7e5d2e5caf48e545f6875d78a5ae254ecbf68e6d68b0721a1bc8f915000
    paragraph_quote: The provisions of this ML are effective immediately. All updates will be incorporated
      into a forthcoming update of the HUD Handbook 4000.1, FHA Single Family Housing Policy Handbook
      (Handbook 4000.1).
- id: hud-ml-2026-10-affected-programs
  canonical_id: hud-ml-2026-10-affected-programs
  section: HUD ML 2026-10 — Affected Programs
  type: reference
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - full-text
  - origination
  - quality-control
  - appraisal
  - field-review
  - ml-2026-10
  primary_source:
    tier: 1
    authority: HUD Mortgagee Letter 2026-10 — Updates to FHA Quality Control Requirements for Appraisal
      Field Reviews — Affected Programs
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/default/files/hudclips/documents/2026-10hsgml.pdf
    snapshot_id: bf207c802a64b86c
    fetched_at: '2026-07-13T02:16:18Z'
    content_hash: sha256:6f94b7e5d2e5caf48e545f6875d78a5ae254ecbf68e6d68b0721a1bc8f915000
    paragraph_quote: The provisions of this ML apply to all FHA-insured mortgage programs.
- id: hud-ml-2026-10-background
  canonical_id: hud-ml-2026-10-background
  section: HUD ML 2026-10 — Background
  type: reference
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - full-text
  - origination
  - quality-control
  - appraisal
  - field-review
  - ml-2026-10
  primary_source:
    tier: 1
    authority: HUD Mortgagee Letter 2026-10 — Updates to FHA Quality Control Requirements for Appraisal
      Field Reviews — Background
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/default/files/hudclips/documents/2026-10hsgml.pdf
    snapshot_id: bf207c802a64b86c
    fetched_at: '2026-07-13T02:16:18Z'
    content_hash: sha256:6f94b7e5d2e5caf48e545f6875d78a5ae254ecbf68e6d68b0721a1bc8f915000
    paragraph_quote: FHA has identified an opportunity to allow greater flexibility in its QC policy for
      Property and Appraisals by removing the requirement for Mortgagees to obtain appraisal field reviews
      on at least 10 percent of origination and underwriting QC reviews. The update makes field reviews
      an optional component of appraisal QC, maintaining FHA’s core appraisal compliance framework while
      giving Mortgagees the ability to tailor review methods based on case-specific risk.
- id: hud-ml-2026-10-summary-of-changes
  canonical_id: hud-ml-2026-10-summary-of-changes
  section: HUD ML 2026-10 — Summary of Changes
  type: reference
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - full-text
  - origination
  - quality-control
  - appraisal
  - field-review
  - ml-2026-10
  primary_source:
    tier: 1
    authority: HUD Mortgagee Letter 2026-10 — Updates to FHA Quality Control Requirements for Appraisal
      Field Reviews — Summary of Changes
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/default/files/hudclips/documents/2026-10hsgml.pdf
    snapshot_id: bf207c802a64b86c
    fetched_at: '2026-07-13T02:16:18Z'
    content_hash: sha256:6f94b7e5d2e5caf48e545f6875d78a5ae254ecbf68e6d68b0721a1bc8f915000
    paragraph_quote: 'This ML: • updates requirements in Property and Appraisals (V.A.3.c.ii(C)).'
- id: hud-ml-2026-10-property-appraisal-reviews
  canonical_id: hud-ml-2026-10-property-appraisal-reviews
  section: HUD ML 2026-10 — Property and Appraisals — Standard — Property and Appraisal Reviews (V.A.3.c.ii(C)(1)(a))
  type: do
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - full-text
  - origination
  - quality-control
  - appraisal
  - field-review
  - ml-2026-10
  primary_source:
    tier: 1
    authority: HUD Mortgagee Letter 2026-10 — Updates to FHA Quality Control Requirements for Appraisal
      Field Reviews — Property and Appraisals — Standard — Property and Appraisal Reviews (V.A.3.c.ii(C)(1)(a))
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/default/files/hudclips/documents/2026-10hsgml.pdf
    snapshot_id: bf207c802a64b86c
    fetched_at: '2026-07-13T02:16:18Z'
    content_hash: sha256:6f94b7e5d2e5caf48e545f6875d78a5ae254ecbf68e6d68b0721a1bc8f915000
    paragraph_quote: For all FHA-insured Mortgages selected by the Mortgagee for origination and underwriting
      QC review, the Mortgagee must evaluate all Property documentation and the appraisal report used
      to support the Property Value and eligibility for FHA insurance. At a minimum, the Mortgagee must
      review all Property documentation and the appraisal report for completeness, technical accuracy,
      and overall quality in compliance with Property Acceptability Criteria for Forward Mortgages (II.A.3.a),
      Property Acceptability Criteria for Reverse Mortgages (II.B.4.a), and Appraiser and Property Requirements
      for Title II Forward and Reverse Mortgages (II.D). The Mortgagee should use valuation tools, Automated
      Valuation Models (AVM), multiple listing service data, public records data, and any other appropriate
      methods to identify potential valuation errors or other compliance issues.
- id: hud-ml-2026-10-field-reviews
  canonical_id: hud-ml-2026-10-field-reviews
  section: HUD ML 2026-10 — Property and Appraisals — Field Reviews (V.A.3.c.ii(C)(1)(b))
  type: do
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - full-text
  - origination
  - quality-control
  - appraisal
  - field-review
  - ml-2026-10
  primary_source:
    tier: 1
    authority: HUD Mortgagee Letter 2026-10 — Updates to FHA Quality Control Requirements for Appraisal
      Field Reviews — Property and Appraisals — Field Reviews (V.A.3.c.ii(C)(1)(b))
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/default/files/hudclips/documents/2026-10hsgml.pdf
    snapshot_id: bf207c802a64b86c
    fetched_at: '2026-07-13T02:16:18Z'
    content_hash: sha256:6f94b7e5d2e5caf48e545f6875d78a5ae254ecbf68e6d68b0721a1bc8f915000
    paragraph_quote: The Mortgagee may obtain appraisal field reviews if needed to adequately assess the
      appraisal report for compliance with all applicable requirements. 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.
- id: hud-ml-2026-10-exceptions
  canonical_id: hud-ml-2026-10-exceptions
  section: HUD ML 2026-10 — Property and Appraisals — Exceptions (V.A.3.c.ii(C)(2))
  type: reference
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - full-text
  - origination
  - quality-control
  - appraisal
  - field-review
  - ml-2026-10
  primary_source:
    tier: 1
    authority: HUD Mortgagee Letter 2026-10 — Updates to FHA Quality Control Requirements for Appraisal
      Field Reviews — Property and Appraisals — Exceptions (V.A.3.c.ii(C)(2))
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/default/files/hudclips/documents/2026-10hsgml.pdf
    snapshot_id: bf207c802a64b86c
    fetched_at: '2026-07-13T02:16:18Z'
    content_hash: sha256:6f94b7e5d2e5caf48e545f6875d78a5ae254ecbf68e6d68b0721a1bc8f915000
    paragraph_quote: 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.
- id: hud-ml-2026-10-required-documentation
  canonical_id: hud-ml-2026-10-required-documentation
  section: HUD ML 2026-10 — Property and Appraisals — Required Documentation (V.A.3.c.ii(C)(3))
  type: do
  tags:
  - round-b
  - regulator-direct
  - hud-ml
  - fha
  - full-text
  - origination
  - quality-control
  - appraisal
  - field-review
  - ml-2026-10
  primary_source:
    tier: 1
    authority: HUD Mortgagee Letter 2026-10 — Updates to FHA Quality Control Requirements for Appraisal
      Field Reviews — Property and Appraisals — Required Documentation (V.A.3.c.ii(C)(3))
    source_class: hud-ml-pdf
    source_url: https://www.hud.gov/sites/default/files/hudclips/documents/2026-10hsgml.pdf
    snapshot_id: bf207c802a64b86c
    fetched_at: '2026-07-13T02:16:18Z'
    content_hash: sha256:6f94b7e5d2e5caf48e545f6875d78a5ae254ecbf68e6d68b0721a1bc8f915000
    paragraph_quote: 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.
      Results include all selection criteria, review documentation, Findings, and actions taken to mitigate
      Findings.
