FHFA, HUD Announce Policy Changes; Treasury Phasing Out Paper Checks

While the last few months have been quiet on the regulatory front, there has been a flurry of activity elsewhere that you may have missed and might be of interest to you. For example, the new director of the Federal Housing Finance Agency (FHFA), Bill Pulte, has been rescinding FHFA bulletins. If you are not familiar with the workings of the FHFA, it is an independent agency that oversees government sponsored entities such as Fannie Mae and Freddie Mac, and also the Federal Home Loan Bank (FHLB) System. The rescinded bulletins include the bulletin directing Fannie Mae, Freddie Mac, and the FHLB to monitor and enforce unfair or deceptive acts or practices by lenders, servicers, and third parties. Also rescinded recently, is the bulletin on Special Purpose Credit Programs. FHFA will no longer provide funding for these types of programs going forward. As of the writing of this blog, the FHFA hasn’t posted the formal orders rescinding these bulletins to its website but there is a page listing bulletins that have been rescinded here -- although that list isn’t current yet. Director Pulte has provided transparency in rescinding these bulletins over the last week via his X account.

For those involved with Housing and Urban Development (HUD)/ Federal Housing Administration(FHA) loans you should be aware that HUD has issued Mortgagee Letter 2025-08. The letter, which was released on March 19th and was effective immediately, cancels various mortgagee letters on appraisal policies and provides details on the resulting changes. What may be of interest is the removal of borrower- initiated requests for reconsiderations of value. Specifically, the requirements for the lender to disclose the process for receiving and responding to borrower requests for additional appraisals have been eliminated from the policy requirements for certain HUD/FHA loans/programs. This letter applies to FHA Single Family Title II forward and Home Equity Conversion Mortgage (HECM) programs. The letter updating the appraisal review and reconsideration of value process that was rescinded by Mortgagee Letter 2025-08 is Mortgagee Letter 2024-07.

HUD also recently released Mortgagee Letter 2025-09, which revises residency requirements for those applying for FHA insured loans. This letter eliminates non-permanent resident borrowers from eligibility. It applies to FHA case numbers assigned on or after May 25, 2025, but the Letter notes that it may be implemented immediately.

Another recent development that may have slipped under your radar is the Executive Order from the White House announcing the phase out of paper government checks. Treasury check fraud is rampant and widespread. Effective September 30, 2025, the federal government will no longer issue paper checks for tax refunds, benefits, and other payments. This doing away with paper checks and the institution of electronic payments not only affects payments from the federal government but also payments made to the federal government. Eventually, the federal government will no longer accept checks as a payment method for taxes, loans, fines, or fees. However, the EO does indicate that certain exceptions will be made for individuals without the ability to receive or make payments electronically. There is also a fact sheet that accompanied the EO.

Well folks, for now, that is all I have for what might have escaped your notice. If you have any questions, please don’t reach out. Just kidding! Today is April 1st and it is April Fool’s Day! All joking aside, we love hearing from our members and assisting them with their compliance questions. Members of America’s Credit Unions can always reach out to the Compliance Team with their regulatory compliance questions by emailing compliance@americascreditunions.org.