DCUC Urges FHA to Modernize Property Requirements and Expand Affordable Homeownership

By DCUC Staff — October 29, 2026

Joint letter from 14 national organizations calls for prompt implementation of proposed reforms.

WASHINGTON, D.C. — The Defense Credit Union Council (DCUC) today joined 13 other national organizations in urging the Federal Housing Administration (FHA) to promptly finalize and implement its proposed modernization of minimum property requirements. In a joint letter to Joseph M. Gormley, Acting Assistant Secretary for Housing–Federal Housing Commissioner, the organizations supported FHA’s “Draft Policy Update: Modernizing and Strengthening Minimum Property Requirements (MPR)” as an opportunity to lower financing costs and expand access to safe, affordable housing.

The coalition said that, if finalized in substantially similar form, the proposal could be one of the most meaningful improvements to FHA valuation policy and the overall FHA financing process in years. The organizations encouraged FHA to move expeditiously to implement the changes.“A home can give a military family a sense of stability through years of service and transition. Making that home affordable is central to the work of defense credit unions,” said Anthony Hernandez, DCUC President and CEO. “FHA has an opportunity to make home financing more accessible while maintaining protections borrowers can count on. We support moving this proposal forward so more creditworthy families can take that first step toward homeownership.” The proposal would align FHA property valuation policies more closely with those used by Fannie Mae and Freddie Mac. The letter explains that this alignment would reduce operational, staffing, and compliance costs for lenders and appraisers while extending to FHA borrowers the protections associated with the market’s most widely used financing programs. The organizations expect these changes to make FHA loans more efficient to originate and reduce costs for lenders and consumers.“Credit unions need a mortgage process that helps them serve their members efficiently. Bringing FHA’s property valuation policies into closer alignment with conventional financing would reduce unnecessary costs and make the program easier for lenders and homebuyers to use,” said Jason Stverak, DCUC Chief Advocacy Officer. “We urge FHA to act promptly. This proposal offers a practical way to strengthen housing affordability while preserving the consumer protections families deserve.” The signatories described FHA as the nation’s flagship program for first-time homebuyers. They emphasized that more consistent property valuation standards would make the program more effective and appealing to both lenders and buyers, expanding creditworthy borrowers’ access to safe housing with affordable financing. The letter also noted that the proposal advances the goals of President Trump’s March 13, 2026, Executive Order, “Promoting Access to Mortgage Credit.” The organizations welcomed continued engagement with FHA, including technical feedback through the agency’s Drafting Table process. Joining DCUC on the letter were the American Bankers Association; America’s Credit Unions; Broker Action Coalition; Center for Responsible Lending; Collateral Risk Network; Community Home Lenders of America; Housing Policy Council; Independent Community Bankers of America; Mortgage Bankers Association; National Association of REALTORS; National Association of Mortgage Brokers; National Housing Conference; and Real Estate Valuation Advocacy Association. Review the proposal on FHA’s Drafting Table.

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Originally reported by DCUC.