[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2322 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 2322
To amend the Federal Housing Enterprises Safety and Soundness Act of
1992 to require that financial institutions, appraisal management
companies, appraisers, and other valuation professionals are serving
the housing market in a manner that is efficient and consistent for all
mortgage loan applicants, borrowers, and communities, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 17, 2025
Mr. Warnock (for himself, Ms. Alsobrooks, Ms. Blunt Rochester, Mr. Kim,
Mr. Booker, and Ms. Warren) introduced the following bill; which was
read twice and referred to the Committee on Banking, Housing, and Urban
Affairs
_______________________________________________________________________
A BILL
To amend the Federal Housing Enterprises Safety and Soundness Act of
1992 to require that financial institutions, appraisal management
companies, appraisers, and other valuation professionals are serving
the housing market in a manner that is efficient and consistent for all
mortgage loan applicants, borrowers, and communities, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Appraisal Modernization Act''.
SEC. 2. PUBLIC APPRAISAL DATABASE.
(a) In General.--The Federal Housing Enterprises Safety and
Soundness Act of 1992 (12 U.S.C. 4501 et seq.) is amended by inserting
after section 1313B (12 U.S.C. 4513b) the following:
``SEC. 1313C. PUBLIC APPRAISAL DATABASE.
``(a) Purpose.--The purpose of this section is to provide the
public, the Federal Government, and State governments with residential
real estate appraisal data to help determine whether financial
institutions, appraisal management companies, appraisers, and other
valuation professionals are serving the housing market in a manner that
is efficient and consistent for all mortgage loan applicants,
borrowers, and communities.
``(b) Definitions.--In this section:
``(1) Application.--The term `application' means the
submission of a consumer's financial information for the
purposes of obtaining an extension of credit.
``(2) Dwelling.--The term `dwelling'--
``(A) means a 1-to-4 unit residential structure,
whether or not attached to real property; and
``(B) includes a detached home, an individual
condominium or cooperative unit, and a manufactured
home or other factory-built home.
``(3) Financial institution.--The term `financial
institution' means any partnership, company, corporation,
association (incorporated or unincorporated), trust, estate,
cooperative organization, or other entity that engages in
financial activity.
``(4) Mortgage loan.--The term `mortgage loan' means any
extension of credit that is secured by a lien on a dwelling.
``(c) Agency Appraisal Data Sharing.--
``(1) Legacy appraisal data.--Not later than 180 days after
the date of enactment of this section, the Federal National
Mortgage Association, the Federal Home Loan Mortgage
Corporation, the Federal Housing Administration, the Department
of Agriculture, and the Department of Veterans Affairs shall
provide to the Agency--
``(A) the appraisal data collected in connection
with mortgage loan applications and mortgage loans that
financial institutions submitted to the Federal
National Mortgage Association, the Federal Home Loan
Mortgage Corporation, the Federal Housing
Administration, the Department of Agriculture, and the
Department of Veterans Affairs, as applicable, during
the period beginning on January 1, 2017, and ending on
the date of enactment of this section; and
``(B) the corresponding census tract of the subject
property, agency loan identifier, the Universal Loan
Identifier required by the Home Mortgage Disclosure Act
of 1975 (12 U.S.C. 2801 et seq.), the mortgage loan
purpose, whether the property is owner occupied, the
acquiring agency, and the race and ethnicity of the
borrower as required by that Act.
``(2) Modernized appraisal data.--Not later than 1 year
after the date of enactment of this section, and on a quarterly
basis thereafter, the Federal National Mortgage Association,
the Federal Home Loan Mortgage Corporation, the Federal Housing
Administration, the Department of Agriculture, and the
Department of Veterans Affairs shall provide to the Agency--
``(A) the appraisal data collected in connection
with mortgage loan applications and mortgage loans that
financial institutions submitted in the previous
quarter to the Federal National Mortgage Association,
the Federal Home Loan Mortgage Corporation, the Federal
Housing Administration, the Department of Agriculture,
and the Department of Veterans Affairs, as applicable;
and
``(B) the corresponding census tract of the subject
property, agency loan identifier, the Universal Loan
Identifier required by the Home Mortgage Disclosure Act
of 1975 (12 U.S.C. 2801 et seq.), the mortgage loan
purpose, whether the property is owner occupied, the
acquiring agency, and the race and ethnicity of the
borrower as required by that Act.
``(d) Public Searchable Database.--
``(1) Legacy appraisal database.--Not later than 2 years
after the date of enactment of this section, the Director, in
consultation with the Secretary of Housing and Urban
Development, the Secretary of Agriculture, and the Secretary of
Veterans Affairs, shall make publicly available online a
searchable and downloadable appraisal-level public use file of
the data shared pursuant to subsection (c)(1).
``(2) Modernized appraisal database.--Not later than 2
years after the date of enactment of this section, and on a
quarterly basis thereafter, the Director, in consultation with
the Secretary of Housing and Urban Development, the Secretary
of Agriculture, and the Secretary of Veterans Affairs, shall
make publicly available online a searchable and downloadable
appraisal-level public use file of the data shared pursuant to
subsection (c)(2).
``(e) Form and Manner of Valuation Data.--
``(1) In general.--Any appraisal data required to be
disclosed under subsection (d) shall be itemized at the
appraisal level to clearly and conspicuously disclose--
``(A) the assignment data, including the assignment
reason, property valuation method, client or lender
name, appraisal management company name, appraiser
company name, appraiser credential level, appraiser
identification number, and State, exterior scope of
inspection, interior scope of inspection, and the
inspection date;
``(B) the subject property data, including the
physical address, zip code, county, State, neighborhood
name, attachment type, number of units excluding
accessory dwelling units, number of accessory dwelling
units, special tax assessments, whether the subject
property is a planned unit development, condominium,
cooperative, property on Native American lands, subject
site owned in common, homeowner responsible for all
exterior maintenance of dwelling, or new construction,
the property rights appraised, whether all rights are
included in the appraisal, and the legal description;
``(C) the market data, including the market area
boundary, search criteria description, number of active
listings and their median days on market, lowest list
price, median list price, and highest list price, the
number of pending sales, the number of sales in the
past 24 months and their lowest sale price, median sale
price, and highest sale price, whether there is
distressed market competition, the price trend source,
the demand and supply trend, the marketing time, and
the market commentary;
``(D) the project information, including the
project information data source, the monthly amount of
mandatory fees, the common amenities and services
included, the utilities included, whether the developer
or sponsor is in control, any known legal actions, unit
special assessments, and unit tax abatements or
exemptions;
``(E) the subject listing information, including
the subject listing identification number, the start
date, end date, days on market, starting list price,
and current or final list price;
``(F) the sales contract data, including whether
there is a sales contract, whether the contract was
analyzed, and whether the transaction appears to be an
arms length transaction, the contract price, the
contract data, transfer terms, any personal property
conveyed, any known sales concessions, total sales
concessions and whether such concessions are typical
for the market, and sales contract analysis;
``(G) for the subject property and each comparable
property relied on for the opinion of value, as
applicable--
``(i) the general data, including the
property address, data source, proximity to the
subject, list price, listing status, contract
price or sale price, sales concessions,
contract date, sale data, days on market,
whether attached or detached, and property
rights appraised;
``(ii) the site data, including the site
size, neighborhood name, topography, site
influence or location, site view, and site
range;
``(iii) the dwelling data, including the
year built, dwelling style, heating, and
cooling;
``(iv) the energy efficient and green
features, including the efficiency rating;
``(v) the unit data, including the number
of bedrooms, number of full baths, number of
half baths, finished area above grade, finished
area below grade, unfinished area below grade,
and below grade exterior access;
``(vi) the exterior quality and condition
ratings data, including the quality rating,
exterior walls and trim, roof, and condition
rating;
``(vii) the interior quality and condition
ratings data, including the quality rating,
condition rating, kitchen, and overall
flooring;
``(viii) the overall quality and condition
ratings data, including the quality rating and
the condition rating;
``(ix) the property amenities data,
including the outdoor living, water features,
and miscellaneous;
``(x) the vehicle storage data, including
type, spaces, and detail; and
``(xi) for each comparable relied on for
the opinion of value, any adjustments related
to each of the above data fields;
``(H) the summary data for the comparable
properties relied on for the opinion of value,
including the list price, sale price, net adjustment
total, price per finished area above grade, adjusted
price, and comparable weight;
``(I) the reconciliation data, including the
approaches to value, the contract price, opinion of
market value, market value condition, reasonable
exposure time, effective date of appraisal, and final
value condition statement;
``(J) the corresponding census tract of the subject
property, agency loan identifier, the Universal Loan
Identifier required by the Home Mortgage Disclosure Act
of 1975 (12 U.S.C. 2801 et seq.), the mortgage loan
purpose, whether the property is owner occupied, the
acquiring agency, and the race and ethnicity of the
borrower as required by that Act, based on the data
provided by the Federal National Mortgage Association,
the Federal Home Loan Mortgage Corporation, the Federal
Housing Administration, the Department of Agriculture,
and the Department of Veterans Affairs, as applicable,
to the Agency and added to the public appraisal
database by the Agency; and
``(K) such other information as the Agency may
require by regulation, after notice and comment.
``(2) Discretion to modify publicly available data.--The
Agency may modify data collected under this section, to be made
publicly available, if the Agency determines by regulation,
after notice and comment, that the release of the unmodified
data creates risks to a mortgage loan applicant or mortgage
loan borrower privacy interests that are not justified by the
benefits of such release to the public in light of the
statutory purposes.
``(f) Access to the Unmodified Database.--For enforcement and other
purposes, the Agency shall, upon request, provide access to all
information collected for the database pursuant to this section, in
unredacted form, to any Executive agency, as defined in section 105 of
title 5, United States Code, the Board of Governors of the Federal
Reserve System, the Office of the Comptroller of the Currency, the
Federal Deposit Insurance Corporation, the National Credit Union
Administration, the Appraisal Subcommittee of the Federal Financial
Institutions Examination Council, the Bureau of Consumer Financial
Protection, and any State attorney general, State appraiser regulator,
or other State agency with responsibility for laws related to
appraisals.
``(g) Rule of Construction.--Nothing in this section shall be
construed to encourage unsafe or unsound lending, appraisal, or
valuation practices.
``(h) Rules and Interpretive Guidelines.--Not later than 1 year
after the date of enactment of this section, the Agency shall issue a
final rule after notice and comment and issue such guidance as may be
necessary to carry out and enforce this section.''.
SEC. 3. RECONSIDERATION OF VALUE.
(a) In General.--Section 129E of the Truth In Lending Act (15
U.S.C. 1639e) is amended--
(1) by redesignating subsections (j) and (k) as subsections
(k) and (l), respectively; and
(2) by inserting after subsection (i) the following:
``(j) Consumer Right to Reconsideration of Value or Subsequent
Appraisal.--
``(1) Definitions.--In this section:
``(A) Unacceptable appraisal practice.--The term
`unacceptable appraisal practice' means an appraisal
report that--
``(i) uses unsupported or subjective terms
to assess or rate the property without
providing a foundation for analysis and
contextual information;
``(ii) uses inaccurate or incomplete data
about the subject property, the neighborhood,
the market area, or any comparable property;
``(iii) includes references, statements or
comparisons about crime rates or crime
statistics, whether objective or subjective;
``(iv) relies in the appraisal analysis on
comparable properties that were not personally
inspected by the appraiser when required by the
appraisal's scope of work;
``(v) relies in the appraisal analysis on
inappropriate comparable properties;
``(vi) fails to use comparable properties
that are more similar, or nearer, to the
subject property without adequate explanation;
``(vii) uses comparable property data
provided by any interested party to the
transaction without verification by a
disinterested party;
``(viii) uses inappropriate adjustments for
differences between the subject property and
the comparable properties that do not reflect
the market's reaction to such differences; or
``(ix) fails to make proper adjustments,
including time adjustments for differences
between the subject property and the comparable
properties when necessary.
``(B) Unsupported.--The term `unsupported' means,
with respect to an appraisal report or an appraiser's
opinion of value, that the appraisal report or the
opinion of value is not supported by relevant evidence
and logic.
``(2) Review.--In connection with a consumer credit
transaction secured by a consumer's principal dwelling, a
creditor shall have a review and resolution procedure for a
consumer-initiated reconsideration of value or subsequent
appraisal that complies with the following requirements:
``(A) The creditor shall complete its own appraisal
review before delivering the appraisal to the consumer.
``(B) The creditor shall have policies and
procedures that provide the consumer with a process to
submit one request for a reconsideration of value and
subsequent appraisal prior to the loan closing or
within 60 calendar days of denial of a credit
application if the consumer believes the appraisal
report may be unsupported, may be deficient due to an
unacceptable appraisal practice, or may reflect
discrimination.
``(C) At the time of application and upon delivery
of the appraisal report to the consumer, the creditor
shall provide a written disclosure to the consumer
describing the process for requesting a reconsideration
of value or subsequent appraisal, which written
disclosure shall include a standardized format for the
consumer to submit the request for a reconsideration of
value, including--
``(i) the name of the borrower;
``(ii) the property address;
``(iii) the effective date of the
appraisal;
``(iv) the appraiser's name;
``(v) the date of the request;
``(vi) a description of why the consumer
believes the appraisal report may be
unsupported, may be deficient due to an
unacceptable appraisal practice, or may reflect
discrimination;
``(vii) any additional information, data,
including not more than 5 alternative
comparable properties and the related data
sources that the consumer would like the
appraiser to consider; and
``(viii) an explanation of why the new
information, data, or comparable properties
support the reconsideration of value.
``(D) The creditor shall obtain the necessary
information from the consumer if the consumer's request
for reconsideration of value or subsequent appraisal is
unclear or requires more information.
``(E) The creditor shall have a standardized format
to communicate the reconsideration of value to the
appraiser, which format shall include--
``(i) the name of the borrower;
``(ii) the property address;
``(iii) the effective date of the
appraisal;
``(iv) the appraiser's name;
``(v) the date of the request;
``(vi) a description of any area of the
appraisal report that may be unsupported, may
be deficient due to an unacceptable appraisal
practice, or may reflect discrimination;
``(vii) any additional information, data,
including not more than 5 alternative
comparable properties and the related data
sources that the consumer would like the
appraiser to consider;
``(viii) an explanation of why the new
information, data, or comparable properties
support the reconsideration of value;
``(ix) a definition of turn-time
expectations for the appraiser to communicate
the reconsideration of value results back to
the creditor;
``(x) instructions for delivering the
reconsideration of value response as part of a
revised appraisal report that includes
commentary on conclusions regardless of the
outcome; and
``(xi) a reference for appraisers on how to
correct minor appraisal issues or non-material
errors not related to the reconsideration of
value process.
``(3) Subsequent appraisal and referral.--
``(A) In general.--If the creditor identifies
material deficiencies in the appraisal report that are
not corrected or addressed by the appraiser upon
request of the creditor, including through a consumer-
initiated reconsideration of value, or if there is
evidence of unsupported or unacceptable appraisal
practices, the creditor shall--
``(i) at the request of the consumer, order
a subsequent appraisal at the creditor's own
expense; and
``(ii) forward the appraisal report and the
creditor's summary of findings to the
appropriate appraisal licensing agency or
regulatory board.
``(B) Discrimination.--If the creditor has reason
to believe that an appraisal report reflects
discrimination, the creditor shall--
``(i) order a subsequent appraisal, at the
creditor's own expense;
``(ii) forward the appraisal report and the
creditor's summary of findings to the
appropriate local, State, or Federal
enforcement agency; and
``(iii) upon a final determination of
discrimination by the appropriate local, State,
or Federal enforcement agency, receive a
reimbursement from the appraiser covering the
cost of the subsequent appraisal ordered by the
creditor.
``(C) Definition.--
``(i) In general.--Except as provided in
clause (ii), in this paragraph, the term
`reason to believe' means that the creditor has
reviewed the applicable law and available
evidence and determined that a potential
violation of Federal or state
antidiscrimination law exists. The available
evidence may include the appraisal report, loan
files, written communications, credible
observations by persons with direct knowledge,
statistical analysis, and the appraiser's
response to the request for a reconsideration
of value.
``(ii) Exception.--The term `reason to
believe' does not mean that there is a final
legal determination of discrimination.
``(4) Document retention.--The creditor shall retain all
documentation and written communications related to the request
for reconsideration of value or subsequent appraisal in the
loan file during the seven-year period beginning on the date on
which the consumer submitted the credit application.
``(5) Rule of construction.--This subsection is consistent
with the exceptions to the appraiser independence requirements
found in Section 129E(c) of the Truth in Lending Act (15 U.S.C.
1639e(c)). Nothing in this subsection shall be construed to
require a creditor to submit a reconsideration of value to the
original appraiser before ordering a subsequent appraisal from
a subsequent appraiser.''.
(b) Rules and Interpretative Guidelines.--Section 129E(g) of the
Truth in Lending Act (15 U.S.C. 1639e(g)) is amended--
(1) in paragraph (1), by striking ``paragraph (2), the
Board'' and inserting ``paragraphs (2) and (3), the Bureau'';
and
(2) by adding at the end the following:
``(3) Final rule.--Not later than 1 year after the date of
enactment of this paragraph, the Federal Housing Finance Agency
shall issue a final rule after notice and comment and issue
such guidance as may be necessary to carry out and enforce
subsection (j).''.
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