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Notice of Deficiency (NOD)

FHA Single Family Housing Policy Handbook Glossary November 26 2025

Updated 08-20-2026

Notice of Deficiency (NOD)

A Notice of Deficiency (NOD) refers to a formal notification from FHA to an appraiser when a review identifies an error or lack of compliance. An NOD is not a sanction and is not considered severe enough to require remedial education or removal.

FHA Single Family Housing Policy Handbook Glossary November 26 2025

p. 40

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