FHA Mortgagee Letters 2025-15 to 2025-19: What Lenders Need to Know in 2026
Senior Director Steve McGurl of Newbold Advisors delivers a clear, practical breakdown of the five new FHA Mortgagee Letters and their real-world impact on underwriting, appraisals, staffing, flood zones, and disaster lending.
FHA just issued five Mortgagee Letters that change how loans get underwritten, appraised, and closed.
Less paperwork. More staffing flexibility. Fewer inspection delays. Streamlined appraisals. And one construction requirement that's been pulled back entirely.
Individually, each one is a small procedural tweak. Together, they're a meaningful shift in how FHA lending will work going forward, and most people in the industry haven't caught up yet.
Over the next few weeks, Steve breaks down each change, one at a time, and what it actually means for borrowers, lenders, and builders.
References: FHA Mortgagee Letters 2025-15 through 2025-19
THE CAMPAIGN
LinkedIn Series Schedule
Wed • July 8, 2026
Anchor Post
FHA issues five Mortgagee Letters — what it means for the industry
Fri • July 10, 2026
Less Paperwork
HUD-92900-B eliminated from FHA files
Tue • July 14, 2026
Part-Time DE Underwriters
Full-time requirement removed for Direct Endorsement underwriters
Thu • July 16, 2026
Flood Construction Relief
Enhanced flood standards rescinded for new construction
Tue • July 21, 2026
Appraisal Modernization
Stricter-than-conventional requirements removed
Thu • July 23, 2026
Disaster Area Lending
Mandatory post-disaster inspections reduced
DEEP DIVE SERIES
The 5 Changes, Explained
Each Mortgagee Letter delivers targeted relief and modernization. Here’s what lenders and builders need to know.
Less Paperwork for FHA Borrowers
One less form standing between your borrower and closing. The Supplemental Consumer Information Form (HUD-92900-B) is eliminated entirely.
Part-Time DE Underwriters Now Allowed
Direct Endorsement Underwriters no longer must work full-time. Opens the door to flexible talent and easier recruiting for lenders.
Flood Construction Requirements Rescinded
HUD withdraws enhanced Federal Flood Risk Management Standard. Lower construction costs and more buildable lots in flood-prone areas.
Appraisal Requirements Modernized
FHA removes several requirements stricter than conventional standards. Faster appraisals, fewer revisions, lower costs for borrowers.
Disaster Area Lending Made Easier
Many mandatory pre-endorsement property inspections after Presidential disaster declarations are eliminated. Faster closings when communities need it most.
Full Series Breakdowns
The complete LinkedIn posts from Steve McGurl, presented here for easy reference and sharing.
FHA Mortgagee Letter 2025-15
Less Paperwork for FHA Borrowers
One less form standing between your borrower and closing.
FHA just eliminated the Supplemental Consumer Information Form (HUD-92900-B) from the loan process entirely.
It's not a headline-grabbing change, but it's the kind of thing that adds up: one less form to collect, one less thing that can be missing or wrong, one less reason a file gets kicked back.
Small change. Real efficiency gain.
Anyone else tracking how many of these "minor" FHA updates are stacking up this year? Curious what you're seeing in your pipeline.
FHA Opens the Door to Part-Time DE Underwriters
Direct Endorsement Underwriters no longer must work full-time.
FHA just removed the full-time requirement for DE Underwriters. This sounds like a small HR detail until you think about what it actually opens up: easier recruiting, better access to experienced underwriters who want flexible schedules, and less overhead pressure for lenders trying to staff up.
In a lending environment where finding good underwriting talent is genuinely hard, this is a real lever.
If you run a lending shop, does this change how you'd approach hiring or scheduling? I’d love to hear your comments below!
FHA Mortgagee Letter 2025-17
FHA Rescinds Enhanced Flood Construction Requirements
Building on an FHA loan in a flood zone just got less expensive.
HUD has withdrawn the enhanced Federal Flood Risk Management Standard for FHA new construction — the stricter elevation and design requirements that had been pushing up costs and shrinking the list of buildable lots.
For builders and developers working in or near flood-prone areas, this means lower construction costs, more usable land, and faster project approvals.
It's also one more piece of a broader push to make affordable housing pencil out again.
Builders: is this the kind of regulatory relief that actually moves a project from "maybe" to "yes"? I’d love to hear your comments below!
FHA Mortgagee Letter 2025-18
FHA Modernizes Appraisal Requirements
Appraisals just got simpler.
FHA has stripped out several appraisal requirements that were stricter than conventional lending standards. These are the kinds of extra steps that add time and cost without adding much value.
The result: faster appraisals, fewer revision cycles, fewer conditions for lenders to clear, and potentially lower costs passed on to borrowers.
Of everything in this update series, this might be the one with the widest, most immediate impact: appraisal delays are one of the most common bottlenecks in FHA closings.
FHA Mortgagee Letter 2025-19
Disaster Area Lending Just Got Easier
When disaster strikes, borrowers shouldn't have to wait longer to close.
FHA has eliminated many of the mandatory pre-endorsement property inspections that used to be required after Presidential disaster declarations.
That means faster closings, lower inspection costs, and less delay for communities that are already dealing with enough — right when financing speed matters most.
Last post in this series. If you found this breakdown useful, let me know. I’m happy to go deeper on any of these five changes. DM me at Stephen McGurl.
COMMON QUESTIONS
Frequently Asked Questions About the New FHA Changes
Answers to the questions lenders and builders are asking about the 2025 Mortgagee Letters.
HUD issued five Mortgagee Letters (2025-15 through 2025-19) covering reduced paperwork, part-time DE underwriters, rescinded flood construction standards, modernized appraisals, and easier lending after disasters.
THE EXPERT BEHIND THE SERIES
Steve McGurl, AMP, CMB
Sr. Director, Governance, Risk & Compliance
Steve brings 35+ years of hands-on experience across the full mortgage and consumer credit lifecycle. At Newbold Advisors, he helps lenders, banks, and credit unions turn complex regulatory, risk, and compliance challenges into clear, actionable strategy.
- Regulatory compliance & fair lending
- FHA, VA, and conventional guidelines
- Mortgage governance & risk frameworks
- Technology implementation & LOS strategy
- Executive advisory & expert witness
NEXT STEPS
Ready to turn these changes into competitive advantage?
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