As part of the Trump administration’s broader effort to cut regulatory burdens, the Federal Housing Administration (FHA) on Friday announced the rescission of 12 policies related to appraisal protocols, underwriter employment, flood risk management and other areas. 

Scott Turner, the secretary of the U.S. Department of Housing and Urban Development (HUD), which oversees the FHA, said in a statement that the rescissions are “bold, necessary and long overdue.”

In practice, the FHA is formally retracting a series of rules implemented via Mortgagee Letters, which had governed various aspects of the loan origination process from the initial application through the issuance of FHA insurance endorsements.

Regarding appraisal protocols, HUD said it’s eliminating “antiquated and burdensome steps” to better align the FHA process with broader industry standards. This shift builds on investments made during the first Trump administration in the FHA Catalyst platform, a cloud-based system that enhances collateral valuation analytics.

The changes will also permit lenders to use part-time staff for direct endorsement underwriter eligibility, provided they remain permanent employees of a single lender and underwriting functions are not contracted out. 

Friday’s rescissions remove the requirement to submit the Supplemental Consumer Information Form (SCIF) to the FHA. In 2024, only 1.2% of FHA borrowers completed this form — including information such as language preference and any homeownership education or housing counseling received — in a manner that provided any potential benefit to them, according to HUD.

The rescissions also include a rollback of a November 2024 Mortgagee Letter establishing minimum property standards in special flood hazard areas.

HUD said the now-rescinded policy would have limited available land for development and increased construction costs for FHA-insured single-family homes — exacerbating the affordable housing shortage for future homebuyers. The policy had been under a temporary one-year waiver since February.

HUD is also removing the requirement for pre-endorsement damage inspections in properties located in federally declared disaster areas.

Previously, FHA Roster Appraisers were required to inspect these homes even if no damage had occurred, leading to unnecessary inspections and loan delays. Going forward, lenders can use internal risk assessment tools to determine the appropriate course of action.

“Under President Trump’s leadership, we’re slashing red tape that drives up costs and shuts families out of the market. Every hardworking American deserves a fair shot at owning a home — the American Dream should never be buried under a pile of regulations,” Turner said. 

Former mortgage loan originator Andrew Josephson claims the company failed to adequately pay him and other employees for time worked in an effort to cut costs and gain a leg up on competitors.

Welcome back to Tech Pulse — HousingWire‘s weekly series rounding up the latest in technology — including tools, integrations and trends that impact mortgage and real estate.

Here’s what happened this week:

Fannie Mae, Freddie Mac jointly create U.S. Financial Technology

Fannie Mae and Freddie Mac have launched U.S. Financial Technology LLC to replace Common Securitization Solutions. The move signals a potential shift in policy for the government-sponsored enterprises under President Donald Trump’s administration. It also hints at renewed private-label ambitions, with Tony Renzi continuing as CEO of the restructured mortgage securities tech platform.

Fannie Mae’s new AI-powered crime detection unit: The Pulte/Palantir project

Fannie Mae has launched an AI-powered mortgage fraud detection unit with Palantir Technologies, which aims to rapidly uncover fraud schemes like occupancy and asset misrepresentation. Officials say the tool will outpace traditional investigations, although its sweeping data analysis could trigger major consequences across the housing finance system, said Bob Simpson, CEO of DaylightAML.

Pulte: Fannie and Freddie will prepare for cryptocurrencies in mortgages

Federal Housing Finance Agency Director Bill Pulte has directed Fannie Mae and Freddie Mac to explore the acceptance of cryptocurrency as a qualifying asset for mortgages. The move could reshape lending standards while making homeownership more accessible for crypto holders. But it could also raise questions about volatility, regulation and the evolving role of digital assets in the housing market.

Moder CTO Joe Trapani: ‘The answer to everything is always data’

Joe Trapani, chief technology officer at Moder, spoke with HousingWire about deploying secure generative AI in mortgage tech, how deep industry expertise drives the company’s strategy, and why human oversight still matters in a risk-averse space. Moder was named a 2025 HousingWire Tech100 winner.

Volly’s new tech tool aims to improve collaboration between lenders, agents

Williston Financial Group subsidiary Volly has launched Network Connections — a digital co-marketing tool designed to boost collaboration between loan officers and real estate agents. The platform delivers real-time listing alerts, co-branded marketing materials and campaign performance tracking.

Ocrolus hires Nadia Aziz to lead new mortgage division

Ocrolus has named Nadia Aziz as general manager of its new mortgage unit, underscoring the company’s rapid growth in the sector. Backed by AI-driven automation, Ocrolus now supports more than 130 mortgage partners. Aziz will lead efforts to streamline loan origination by transforming static documents into actionable data across the process.

Lone Wolf Technologies releases Deal Tracker dashboard

Lone Wolf Technologies has unveiled Deal Tracker, a new real-time pipeline dashboard for its Transact platform. Designed to streamline the transaction process, Deal Tracker gives agents centralized visibility from lead to close — integrating seamlessly with Lone Wolf’s full tech ecosystem to enhance workflow, compliance and client communication.

Sydney investors are snapping up Melbourne homes sight unseen, chasing higher yields and bargain prices while local buyers sit cautiously on the sidelines.

Interstate investors are swooping on Melbourne’s housing market as many local buyers remain cautious after years of rising taxes, tighter regulations and patchy price growth.

New data shows Melbourne is hosting 943 auctions this week — up 6 per cent on the same time last year — with another 772 scheduled for next week, according to PropTrack.

Suburbs with the most listings include Reservoir (19 auctions), Glen Waverley (18), Craigieburn (16), Mount Waverley (15), and Malvern East (14).

RELATED: Off-market trap costing Melb sellers big

Aus bank war erupts over RBA cut call

Melb designer home set to amaze buyers

But while local activity remains uneven, experts say a significant portion of investor momentum is now coming from interstate, particularly Sydney and Perth, where rising prices and falling yields are pushing buyers to seek better value elsewhere.

Ray White Werribee agent John Camilleri said he had recently seen contracts signed before payments cleared.

“We’ve seen properties in far worse condition sell in the $570,000 to $580,000 range, including one that sold over the phone to an interstate buyer,” Mr Camilleri said.

“The investors inspecting this one came in with full-blown itineraries, some of the most detailed I’ve ever seen.

“Right now, they’re swimming through fire to secure properties — they’re not mucking around.”

Reservoir, Glen Waverley and Craigieburn lead Melbourne’s auction hotspots this week, with hundreds of homes set to go under the hammer across the city. Photo: iStock/Ingrid Hendriksen

Mr Camilleri said many were chasing weekly rents above $600 and were making “aggressive plays” in suburbs like Werribee.

MR Advocacy director and buyers’ agent Madeleine Roberts said out-of-towners were now doing the maths on Melbourne and finding it stacks up.

“They’re less emotionally attached to the local market — and that’s giving them an edge,” Ms Roberts said.

MR Advocacy director Madeleine Roberts says interstate buyers are doing the maths on Melbourne, and making bold moves locals won’t.

She said strong rental yields and Melbourne’s relative affordability compared to Sydney, Brisbane and Perth were major drivers of renewed interest.

REBAA President Melinda Jennison said Melbourne was re-emerging as a prime opportunity.

“With stabilising rates, increased migration, and more stock hitting the market, the city is shaping up as a prime spot for savvy investors and first-time buyers alike,” Ms Jennison said.

Melbourne property is back in demand, but it’s interstate investors leading the charge, not local buyers.

REBAA Victoria state representative Matt Scafidi said the 2024–25 financial year had marked a turning point.

“While it lacked the explosive growth seen in other states, Victoria has remained a market of opportunity, particularly for discerning buyers with long-term outlooks,” Mr Scafidi said.

Belle Property Hockingstuart Victoria director Anthony Webb said confidence among local investors was still lagging.

“Victorian investors are still jaded,” Mr Webb said.

“But buyers from NSW and WA believe Melbourne has hit the bottom and are looking long term.”

Mr Webb said many locals were still “gun-shy” after a bruising few years of land tax hikes, regulatory change and rising holding costs — but that sentiment could shift quickly if rate cuts eventuate in the second half of 2025.

Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.

MORE: $2m estate boasts three homes, wedding aisle

Mid-century marvel stuns with $5m+ glow

$3.6m Melb church tavern sparks buyer frenzy

david.bonaddio@news.com.au

The post Sydney investors flock to Melbourne as locals stall appeared first on realestate.com.au.

Windermere Economist Jeff Tucker looks at recent economic indicators, including some surprising upside despite a disappointing spring market.