NFHA Applauds Lawmakers on Implementation of Appraisal Appeal Right, Calls on Agencies to Do More to Support Borrowers
FOR IMMEDIATE RELEASE:
WASHINGTON—Homebuyers hit with an inaccurate, unfair, or deficient appraisal now have a clearer path to challenge it. On Friday, September 18, the Federal Housing Finance Agency (FHFA) issued a regulatory order requiring Fannie Mae and Freddie Mac to maintain borrowers’ right to appeal an appraisal, the first federal action implementing the reconsideration of value (ROV) right Congress created in the 21st Century ROAD to Housing Act. The National Fair Housing Alliance (NFHA) welcomes the order and is calling on federal agencies to go further to protect borrowers.
The right to appeal an appraisal through the ROV process gives consumers a way to contest a valuation that’s inaccurate and unfairly devalues a consumer’s most important and largest asset. An appraisal’s accuracy determines whether a family can buy a home, refinance an existing mortgage, or build wealth from it. Ensuring fairness in the appraisal process means more consumers will have the chance to fairly benefit from homeownership’s wealth building possibilities and share in our nation’s prosperity.
“NFHA is grateful for Congress’ leadership, especially Senate Banking Committee Chair Scott, Ranking Member Warren, House Finance Services Committee Chair Hill, Ranking Member Waters, Sen. Warnock, and Rep. Pressley, in creating a ROV right for consumers with federally backed mortgages,” said Nikitra Bailey, NFHA Executive Vice President. “We call on the federal agencies to swiftly implement a borrower’s statutory right to appeal an appraisal, provide borrowers clear information about the ROV process and all related laws, ensure that borrowers don’t shoulder the cost of a second appraisal when they’ve already paid for an inaccurate, unfair, or deficient one, and open up federal appraisal records and valuation technology to give borrowers and industry the tools they need to combat the fair housing issues caused by hidden property listings.”
NFHA has long championed addressing appraisal bias. Its groundbreaking 2022 federally-commissioned report on bias and systemic barriers in real estate appraisals called for establishing a standardized ROV process.
Efforts to standardize the ROV process were introduced in legislation by Sen. Raphael Warnock in the 2025 Appraisal Modernization Act, which was also introduced in the House of Representative by Rep. Ayanna Pressley. The bipartisan ROAD Act incorporates a key provision of the Appraisal Modernization Act, a requirement that the FHFA, Federal Housing Administration (FHA), Department of Veterans Affairs, and Department of Agriculture implement and maintain this appeal right for their mortgage loan programs.
FHFA’s ROV policy was first implemented in 2024 under the Biden-Harris Administration by then FHFA Director Thompson, and it was supported by the Administration’s Interagency Task Force on Property Appraisal and Valuation Equity (PAVE). On Friday, September 18, FHFA issued a regulatory order to Fannie Mae and Freddie Mac stating FHFA’s view that the 2024 policies comply with the ROAD Act and require Fannie Mae and Freddie Mac to maintain compliance with the ROAD Act.
FHA implemented an appeal right in 2024, which included a requirement that the borrower not have to pay for a second appraisal if the lender found the first appraisal to potentially be discriminatory. The Trump Administration took this right away from FHA homebuyers and imposed second appraisal costs on them in 2025 stating a concern for the costs to lenders.
“The Trump Administration should immediately reverse its 2025 decision to strip rights from FHA homebuyers and impose the costs of a second appraisal on them when it is required because of discrimination,” said NFHA Vice President for Public Policy and Senior Fair Lending Counsel James Wylie. “As the people of America are in the throes of a fair and affordable housing crisis, it is imperative to alleviate costs for consumers instead of prioritizing industry concerns.”
Ensuring the consumers’ right to a reconsideration of value is increasingly important to mortgage borrowers due to the rise of fair housing concerns related to pocket listings and private listing networks in the real estate market. These practices keep real estate listings off the open market and only available to a select few. Transparency in real estate transactions is essential for fostering a fair and competitive marketplace. These practices also impact borrowers, appraisers, and lenders who may not have access to private listings needed to establish a fair value of nearby homes in an appraisal or appraisal appeal.
Data from FHFA, Fannie Mae, and Freddie Mac, along with innovative valuation technologies could address hidden real estate listings and improve the market for homebuyers. The ROAD Act calls for a feasibility study and Congressional hearings for a national appraisal database which could also be designed to combat the fair housing issues associated with hidden real estate listings by providing greater access to information for borrowers, appraisers, and lenders. FHFA previously developed a public database of aggregate appraisal statistics and an appraisal-level public use file, but has not updated them since early 2025. FHFA also previously shared millions of appraisal records with the Department of Justice, HUD, and the Consumer Financial Protection Bureau. NFHA calls on FHFA to resume updates to its public data and to release additional data to address the need for a detailed, national public appraisal database.
Press inquiries: jglover@nationalfairhousing.org
###
About the National Fair Housing Alliance
The National Fair Housing Alliance leads a coalition that works to build inclusive, well-resourced, and resilient communities; expand equitable opportunities; and end housing discrimination.