Notice2026-10766
Request for Information Regarding Single Family Minimum Property Requirements (MPR)
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
May 29, 2026
Issuing agencies
Housing and Urban Development Department
Abstract
The Department of Housing and Urban Development (HUD, through the Federal Housing Administration (FHA)) is seeking public comments regarding Minimum Property Requirements (MPR) as it applies to FHA's Single Family mortgage insurance programs. This Request for Information (RFI) aims to gather market feedback to inform subsequent policy modernization that supports sustainable homeownership opportunities.
Full Text
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<title>Federal Register, Volume 91 Issue 103 (Friday, May 29, 2026)</title>
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[Federal Register Volume 91, Number 103 (Friday, May 29, 2026)]
[Notices]
[Pages 32078-32079]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-10766]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6609-N-01]
Request for Information Regarding Single Family Minimum Property
Requirements (MPR)
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner and the Department of Housing and Urban Development, HUD.
ACTION: Request for information.
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SUMMARY: The Department of Housing and Urban Development (HUD, through
the Federal Housing Administration (FHA)) is seeking public comments
regarding Minimum Property Requirements (MPR) as it applies to FHA's
Single Family mortgage insurance programs. This Request for Information
(RFI) aims to gather market feedback to inform subsequent policy
modernization that supports sustainable homeownership opportunities.
DATES: Comments are requested on or before June 29, 2026. Late-filed
comments will be considered to the extent practicable.
ADDRESSES: Interested persons are invited to submit comments responsive
to this RFI. Copies of all comments submitted are available for
inspection and downloading at <a href="http://www.regulations.gov">www.regulations.gov</a>. To receive
consideration as public comments, comments must be submitted through
one of the two methods specified below. All submissions must refer to
the above docket number and title. Commenters are encouraged to
identify the number of the specific question or questions to which they
are responding. Responses should include the name(s) of the person(s)
or organization(s) filing the comment; however, because any responses
received by HUD will be publicly available, responses should not
include any personally identifiable information or confidential
commercial information.
1. Electronic Submission of Comments. Interested persons may submit
comments electronically through the Federal eRulemaking Portal at
<a href="http://www.regulations.gov">http://www.regulations.gov</a>.
2. Submission of Comments by Mail. Comments may be submitted by
mail to the Regulations Division, Office of General Counsel, Department
of Housing and Urban Development, 451 7th Street SW, Room 10276,
Washington, DC 20410-0500.
FOR FURTHER INFORMATION CONTACT: C. Brian Faux, Director, Office of
Single Family Program Development, Department of Housing and Urban
Development, 451 7th Street SW, Room 9007, Washington, DC 20410-0500;
telephone number 202-402-4317. HUD welcomes and is prepared to receive
calls from individuals who are deaf or hard of hearing, as well as
individuals with speech or communication disabilities. To learn more
about how to make an accessible telephone call, please visit <a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>.
SUPPLEMENTARY INFORMATION:
I. Background
Section 203 of the National Housing Act (12 U.S.C. 1709(a))
authorizes the Secretary to insure single family mortgages upon such
terms as the Secretary may prescribe. Since the Single Family Mortgage
Insurance Program's inception, the Federal Housing Administration (FHA)
has required, as a condition of eligibility, that all residential
properties securing insured mortgages satisfy certain Minimum Property
Requirements (MPRs). These MPRs are designed to ensure that FHA-insured
mortgages are collateralized by properties that are safe, sound, and
secure, thereby protecting borrowers and the fiscal integrity of the
Mutual Mortgage Insurance Fund (MMIF). FHA's MPRs are detailed
throughout FHA's Single Family Policy Handbook 4000.1.
Separately, section 526 of the National Housing Act (12 U.S.C.
1735f-4) requires the Secretary to establish minimum property standards
for newly constructed residential housing other than manufactured
housing. Unlike the administratively developed MPRs, FHA's Minimum
Property Standards (MPS) are expressly mandated by statute and apply to
new construction. They are intended to ensure that newly constructed
homes securing FHA-insured mortgages are safe, sound, and secure, and
that they comply with applicable minimum energy efficiency
requirements. FHA's MPS are codified at 24 CFR part 200, subpart S. The
Single Family Policy Handbook 4000.1 provides additional guidance
regarding these requirements. FHA's MPS are not the subject of this
RFI.
The FHA-approved Mortgagee is responsible for determining whether
the property securing the FHA-insured mortgage satisfies FHA's MPRs.
When an appraisal report or inspection by a qualified entity identifies
conditions that prevent the property from meeting FHA's property
acceptability criteria, the Mortgagee must ensure that the necessary
repairs are completed before the mortgage is eligible for FHA
insurance. Through this process,
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Mortgagees serve as the primary mechanism by which FHA's property
standards are applied at the loan level, ensuring that properties
securing FHA-insured mortgages meet the agency's baseline requirements
for safety, soundness, and security.
FHA's MPRs have adapted to changes in the housing industry numerous
times over the years but the last major update to the MPRs and the
associated repair requirements was over 20 years ago. In that reform,
first published in Mortgagee Letter 2005-48, FHA shifted away from the
historical repair emphasis on minor cosmetic property deficiencies and
normal wear and tear. However, FHA recognizes the benefit of
modernizing and streamlining MPRs to better align the program with
current industry practices. FHA recognizes that a considerable number
of FHA appraisals require a condition for property repair or
inspection. While the Government Sponsored Enterprises (GSEs) also
maintain property safety, soundness and structural integrity
requirements,\1\ some stakeholders indicate the resulting repair and
reinspection rates are significantly lower than those of FHA. While
repairs or additional inspections may be prudent in some cases, they
create real costs that may not always yield a commensurate benefit in
terms of home quality and/or safety. Moreover, this perception of
excessive costs may result in the reluctance by some property sellers
to accept offers from borrowers seeking FHA-insured financing.
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\1\ Selling Guide--Fannie Mae Single Family, p. 567, published
February 4, 2026 (<a href="https://selling-guide.fanniemae.com/sel/b4-1.3-06/property-condition-and-quality-construction-improvements#P3836">https://selling-guide.fanniemae.com/sel/b4-1.3-06/property-condition-and-quality-construction-improvements#P3836</a>).
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President Trump's housing agenda has emphasized the removal of
regulatory barriers that elevate the cost of housing, restrict access
to mortgage credit, and undermine the American Dream of quality,
affordable homeownership. Accordingly, FHA is contemplating a
reassessment of its MPR policies to support a modern approach to
collateral risk management practices. FHA is seeking input on this
topic to ensure that all stakeholder perspectives are considered.
II. Purpose of this Request for Information
The purpose of this RFI is to solicit information on both specific
MPRs and general approaches to modernizing MPRs in ways that balance
the benefits of these requirements with the burdens that they may
impose.
III. Specific Information Requested
FHA welcomes all comments relevant to MPRs but is particularly
interested in receiving feedback on the specific questions below.
1. What are the advantages and/or disadvantages of MPRs compared
with the property safety and soundness requirements of other
governmental and non-governmental financing programs/options?
2. Do the current MPRs adequately protect borrowers utilizing FHA
programs to purchase or refinance a home? Do the current MPRs
adequately protect FHA's Mutual Mortgage Insurance Fund (MMIF) through
reduced collateral risk?
3. What specific MPRs are no longer applicable or necessary to
ensure properties are habitable, safe and sound for FHA borrowers?
4. Are there opportunities to expand post-closing repair
flexibility while still protecting borrowers and the MMI Fund?
5. Are there important factors FHA should consider generally when
modernizing policies to balance the safeguarding function of MPRs
relative to any additional burdens that MPRs may impose?
6. Are the MPRs communicated clearly enough in FHA policies for
borrowers, Mortgagees, and appraisers to understand the requirements?
For example, is there a clear distinction between safety and
habitability concerns that necessitate pre-closing repairs versus
cosmetic repairs?
7. How could FHA streamline and/or simplify MPR policies for
Mortgagees and appraisers to better interpret and apply MPR policies
consistently?
8. Is the FHA Appraiser's scope of work to identify MPR
deficiencies aligned with modern appraisal practice or are there other
more appropriate approaches?
9. Please provide any general suggestions for improvement or
comments on modernizing FHA's approach to MPRs.
Joseph M. Gormley,
President of the Government National Mortgage Association performing
the delegable duties of the Assistant Secretary for Housing--Federal
Housing Commissioner.
[FR Doc. 2026-10766 Filed 5-28-26; 8:45 am]
BILLING CODE 4210-67-P
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</html>Indexed from Federal Register on May 29, 2026.
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