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On August 11, 2016, the Department of Housing and Urban Development (HUD) released a final rule on HUD's Single Family Property Disposition Program, which oversees the management and sale of HUD real estate-owned (REO) properties. Under the rule, the listing price for HUD REO properties can be determined by a variety of valuation methods, including broker price opinions (BPOs), automated valuation models (AVMs) and traditional appraisals. In addition, the maximum value allowed to be placed in escrow for repairs on properties that do not meet the Federal Housing Administration's (FHA) Minimum Property Standards has been increased to $10,000. Listing of the properties shall be done through means found appropriate by the HUD Secretary and winning bids in competitive sales shall be made publicly available.
The rule goes into effect on September 12, 2016.