Updates impact all FHA-insured single-family forward mortgages and reverse mortgages.
HUD is strengthening the link between an appraiser’s state license and their ability to conduct FHA work, while outlining clearer consequences for missed renewals, education gaps, or compliance issues.
Key points for appraisers
FHA’s systems automatically cross-check appraiser license data with the Appraisal Subcommittee’s National Registry.
If a state license expires and is not renewed promptly, the appraiser’s FHA eligibility in that state may be suspended – even if the appraiser is in the process of renewal.
If a license expiration appears in the federal registry, FHA will invalidate that credential in its system after 30 days.
HUD emphasizes that appraisers are responsible for ensuring that renewals are reported to the national registry and accurately reflected in FHA Connection.
Even minor discrepancies, such as a name that doesn’t match registry records precisely, can cause delays in updates and impact eligibility.
If all state credentials have been expired for six months or more, an appraiser’s FHA account could be switched to a read-only status. Reactivation requires proof of a valid state license and a formal request to HUD.
Mortgagee Letter 2025-24 can be accessed in full here.
Application and documentation changes
Hud has also updated the process of applying for and maintaining a position on the FHA Appraiser Roster:
- Appraisers must complete and electronically sign Form HUD-92563-A online, confirming their understanding and compliance with FHA appraisal rules and Handbook 4000.1.
- A PDF copy of each current state license must be uploaded when applying, adding a new state, or advancing a credential level.
- License copies are no longer needed for regular renewals, as FHA relies on automated checks through the national registry.
For lenders and underwriters, the letter clarifies enforcement actions that can impact loan pipelines:
- Notices of Deficiency highlight issues but are not penalties.
- Remedial education may be mandated for more severe appraisal concerns and must be completed within 60 days.
- Removal places an appraiser in ineligible status for FHA work – typically for up to 12 months – or longer if linked to unresolved state discipline.
HUD differentiates between a true removal and a license-related suspension. An expired license only suspends FHA eligibility in that state and is not considered a disciplinary removal.
Appraisers facing removal generally have 20 days to appeal and request a conference. Final decisions are reviewed by HUD officials not involved in the initial action.
Hud states that the updates aim to maintain the accuracy and reliability of the FHA Appraiser Roster as market conditions and licensing statuses evolve, and welcomes industry feedback.