In response to a recent Request for Information, NRMLA submitted comments to the Department of Housing and Urban Development recommending updates to the agency’s Minimum Property Requirements (MPRs).
“While we support HUD’s mission to ensure the safety and habitability of properties securing FHA loans, the current application of MPRs often creates significant hurdles that disproportionately affect rural borrowers, seniors living on fixed incomes, and homeowners residing in older yet well-maintained properties,” NRMLA stated.
Among its recommendations, NRMLA urged HUD to revisit its policies governing shared wells, swimming pools, repair and inspection requirements, individual water supply systems and testing, and water purification systems.
Although outside the direct scope of MPRs, NRMLA also encouraged HUD to modernize its Collateral Risk Assessment (CRA) process.
NRMLA recommended that HUD move away from a one-size-fits-all approach in favor of a tiered, technology-driven framework. “Under this model, when a collateral risk flag is triggered, HUD should authorize the use of targeted, cost-effective validation methods such as desktop appraisals, field reviews, or the preferred solution, risk-based automated valuation tools similar to those used by Fannie Mae and Freddie Mac,” says NRMLA.
