Real Estate Valuation Fairness and Improvement Act of 2021
This bill establishes the Interagency Task Force on Real Estate Valuation to harmonize among specified agencies and entities the underwriting standards that govern residential and commercial real estate valuations. The task force must also study racial disparities in the valuation and price of certain residential real estate.
The bill also establishes a grant program for states, nonprofit organizations, and institutions of higher education to promote diversity and inclusion in the appraisal profession.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2553 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 2553
To establish an interagency Task Force to analyze Federal collateral
underwriting standards and guidance, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 15, 2021
Mr. Cleaver (for himself and Mr. Torres of New York) introduced the
following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To establish an interagency Task Force to analyze Federal collateral
underwriting standards and guidance, 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 ``Real Estate Valuation Fairness and
Improvement Act of 2021''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) Two Federal agencies, the Federal Home Owners' Loan
Corporation and the Federal Housing Administration played a
major role in the development of the modern home mortgage
origination industry.
(2) Both Federal agencies explicitly considered the racial
and ethnic make up of neighborhoods when underwriting loans and
valuing the real estate to be used as home loan collateral.
(3) Both agencies devalued property or refused to make
loans secured by property in communities of color.
(4) The harmful consequences of this discrimination remain
unresolved.
SEC. 3. REAL ESTATE VALUATION TASK FORCE.
(a) Establishment.--The Appraisal Subcommittee of the Financial
Institutions Examination Council shall facilitate the establishment and
convening of an Interagency Task Force on Real Estate Valuation (in
this section referred to as the ``Task Force'').
(b) Members.--The Task Force shall consist of the following members
or their designees:
(1) The Director of the Federal Housing Finance Agency.
(2) The Chair of the Board of Directors of the Federal
National Mortgage Association.
(3) The Chair of the Board of Directors of the Federal Home
Loan Mortgage Corporation.
(4) The President of the Government National Mortgage
Association.
(5) The Chairperson of the Board of Directors of one of the
Federal home loan banks, selected by the Chairpersons of the
Boards of Directors of all of the Federal home loan banks.
(6) The Assistant Secretary of the Department of Housing
and Urban Development who is the Federal Housing Commissioner.
(7) The Undersecretary for Rural Development of the
Department of Agriculture.
(8) The Secretary of Veterans Affairs.
(9) The Director of the Bureau of Consumer Financial
Protection, who shall serve as the Chairperson of the Task
Force.
(10) The Comptroller of the Currency.
(11) The Chairperson of the Board of Directors of the
Federal Deposit Insurance Corporation.
(12) The Chairman of the Board of Governors of the Federal
Reserve System.
(13) The Chairman of the National Credit Union
Administration Board.
(14) The Chairman of the State Liaison Committee.
(c) Duties.--The Task Force shall--
(1) harmonize to the greatest extent possible the various
collateral underwriting standards and guidance of the agencies
and entities represented on the Task Force governing
residential and commercial real estate valuations, including
standards and guidance with respect to appraisals, non-
traditional and alternative methods of providing real estate
property evaluations such as automated valuation models,
processes and procedures for managing reconsiderations of value
by consumers, and standards and guidance with respect to common
collateral underwriting challenges, such as energy efficient
housing and limited or inactive markets;
(2) to the extent that standards or guidance described
under paragraph (1) are not harmonized, the Task Force shall
issue a report to Congress explaining why harmonization cannot
or should not be implemented;
(3) establish specific definitions for limited or inactive
housing markets in which comparable sales are limited or
unavailable over a certain period of time, and establish
greater flexibilities and guidance for appraisals and any
underwriting processes associated with appraisals conducted in
such markets, such as the ability to consider market evidence
for similar properties in other geographic areas or utilizing a
range of value;
(4) aggregate data across Task Force members and conduct a
study to determine whether there are racial disparities at both
the borrower and community level in the valuation and price of
the residential real estate to be used as collateral for
mortgage applications processed by Task Force members;
(5) identify specific causes of such racial disparities
and--
(A) adopt changes to address such causes; or
(B) if the Task Force determines that additional
statutory authority is needed to adopt such changes,
issue a report to Congress describing the needed
statutory authority; and
(6) evaluate whether there are any barriers to entry that
are disproportionately preventing minorities from entering into
the appraisal profession, such as current minimum requirements
established by the Appraiser Qualifications Board, the cost and
availability of education, the content of the State appraiser
exam questions, or the time it takes to finish training.
(d) Meetings.--The Task Force shall convene regularly, including
with the advisory committee described under subsection (g), to carry
out the duties under subsection (c) and submit the reports required
under subsection (f).
(e) Sharing of Information.--Each agency and entity represented on
the Task Force shall share with the Task Force any data of the agency
or entity necessary for the Task Force to carry out the duties of the
Task Force under this Act.
(f) Reports.--
(1) Initial.--The Chairperson of the Task Force shall
submit a report to the Congress not later than the expiration
of the 24-month period beginning on the date of the enactment
of this Act detailing the findings and any actions taken to
further the duties of the Task Force as of such time and
describing any planned efforts and activities.
(2) Ongoing.--Periodically after the submission of the
report pursuant to paragraph (1), the Chairperson shall submit
reports to the Congress setting forth updates of the findings
and actions taken to further the duties of the Task Force.
(g) Advisory Committee.--The Task Force shall establish an advisory
committee to provide advice with respect to the duties of the Task
Force. The advisory committee shall consist of--
(1) at least 2 civil rights advocates;
(2) at least 2 consumer advocates;
(3) at least 2 real estate appraisers (or representatives
of real estate appraiser trade groups);
(4) at least 1 small lender (or representative of a trade
group for small lenders);
(5) at least 1 representative of a trade group that
represents private investors;
(6) at least 2 representatives of appraisal management
companies or trade groups for such companies;
(7) at least 2 individuals who are industry experts on
alternative valuation models; and
(8) at least 1 representative of the organization that
adopts the appraisal standards and appraiser qualification
criteria under title XI of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 3331 et seq.).
(h) Sunset.--The Task Force shall terminate upon the expiration of
the 5-year period beginning on the date of the enactment of this Act.
SEC. 4. PROMOTING DIVERSITY AND INCLUSION IN THE APPRAISAL PROFESSION.
The Financial Institutions Reform, Recovery, and Enforcement Act of
1989 is amended--
(1) in section 1103(a) (12 U.S.C. 3332(a))--
(A) in paragraph (3), by striking ``and'' at the
end;
(B) in paragraph (4), by striking the period at the
end and inserting a semicolon;
(C) in paragraph (5), by striking the period at the
end and inserting a semicolon;
(D) in paragraph (6), by striking the period at the
end and inserting ``a semicolon; and''; and
(E) by adding at the end the following new
paragraph:
``(7) administer the grant program under section
1122(j).'';
(2) in section 1106 (12 U.S.C. 3335)--
(A) by inserting ``(a) In General.--'' before ``The
Appraisal Subcommittee'';
(B) by striking the comma after ``comment'';
(C) by inserting before ``Any regulations'' the
following:
``(b) Regulations.--''; and
(D) in subsection (a) (as so designated by
subparagraph (A) of this paragraph), by adding at the
end the following: ``The Appraisal Subcommittee may
coordinate, and enter into agreements, with private
industry stakeholders (including appraisal management
companies and industry associations) to facilitate
activities and practices that ensure diversity among
individuals newly hired as appraisers in their first
employment positions in the appraisal industry.''; and
(3) in section 1122 (12 U.S.C. 3351), by adding at the end
the following new subsection:
``(j) Grant Program To Promote Diversity and Inclusion in the
Appraisal Profession.--
``(1) In general.--The Appraisal Subcommittee shall carry
out a program under this subsection to makes grants to State
agencies, nonprofit organizations, and institutions of higher
education to promote diversity and inclusion in the appraisal
profession.
``(2) Eligible activities.--Activities carried out with
amounts from a grant under this Act shall be designed to
promote diversity and inclusion in the appraisal profession,
and may include--
``(A) funding scholarships;
``(B) providing training and education;
``(C) providing implicit bias training for
appraisers; and
``(D) other activities as determined appropriate to
further the purposes of this grant program by the
Appraisal Subcommittee.
``(3) Allocation of funds.--In making grants under this
subsection, the Appraisal Subcommittee shall--
``(A) allocate 50 percent of the funds made
available to Historically Black Colleges and
Universities or universities with degree programs
approved by the Appraiser Qualifications Board or a
relevant State regulatory agency for--
``(i) scholarships for students of color
who want to pursue a career in real estate
appraisal; and
``(ii) subsidizing living expenses for
those students while in training; and
``(B) allocate 20 percent of the funds to cover the
cost of fulfilling the experience requirements or other
applicable requirements that the students described
under subparagraph (A) will need to complete in order
to become appraisers.
``(4) Administrative costs.--The Appraisal Subcommittee may
use 1 percent of amounts appropriated pursuant to paragraph (6)
to cover the administrative costs of carrying out this
subsection.
``(5) Reports.--For each fiscal year during which grants
are made under the program under this subsection, the Appraisal
Subcommittee shall submit a report to the Congress regarding
implementation of the program and describing the grants made,
activities conducted using grant amounts, and the number of
individuals served by such grants, disaggregated by race,
ethnicity, age, and gender.
``(6) Authorization of appropriations.--There is authorized
to be appropriated to the Appraisal Subcommittee for grants
under this subsection $50,000,000 for each of fiscal years 2022
through 2026.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Committee Consideration and Mark-up Session Held.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported (Amended) by Voice Vote.
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