Changes apply to all FHA-insured single-family forward mortgages and reverse mortgages.
At its core, HUD is tightening the connection between an appraiser’s state license and their ability to perform FHA work, while spelling out clearer consequences for missed renewals, education lapses or compliance problems.
Key takeaways for appraisers
FHA’s systems automatically check appraiser license data against the Appraisal Subcommittee’s National Registry.
If a state license expires and is not renewed on time, the appraiser’s FHA eligibility in that state can be suspended — even if the appraiser believes the renewal is in process.
If a license expiration shows up in the federal registry, FHA will invalidate that credential in its system after 30 days.
HUD said appraisers are responsible for making sure renewals are reported to the national registry and reflected correctly in FHA Connection.
Even small mismatches — such as a name that doesn’t exactly match registry records — can delay updates and affect eligibility.
If all state credentials have been expired for six months or more, an appraiser’s FHA account may be moved to a read-only status. Reactivation requires proof of a valid state license and a formal request to HUD.
Mortgagee Letter 2025-24 in its entirety can be found here.
Application and documentation updates
HUD also updated the mechanics of applying to and maintaining a spot on the FHA Appraiser Roster:
- Appraisers must complete and electronically sign Form HUD-92563-A online — certifying that they understand and will comply 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 upgrading a credential level.
- License copies are no longer required for routine renewals, as FHA relies on automated checks through the national registry.
For lenders and underwriters, the letter provides clearer definitions of enforcement actions that can affect loan pipelines:
- Notices of Deficiency flag problems but are not sanctions.
- Remedial education may be required for more serious appraisal issues and must be completed within 60 days.
- Removal places an appraiser in ineligible status for FHA work — generally for up to 12 months — or longer if tied to unresolved state discipline.
HUD said it makes a distinction between a true removal and a license-related suspension. An expired license suspends FHA eligibility only 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 who were not involved in the original action.
HUD said the updates are intended to keep the FHA Appraiser Roster accurate and reliable as market conditions and licensing statuses change, and invited industry feedback.
