Getting Renewable and Energy Efficient Neighborhoods Appraisals Act of 2025 or the GREEN Appraisals Act of 2025
This bill requires lenders that originate federally backed residential mortgages to notify borrowers of their right to request an energy report concerning the property.
The bill also requires, upon consent of the borrower, the lender to provide to an appraiser any available energy report concerning the property. The appraiser must take this report into consideration when appraising the value of the property.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2413 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 2413
To provide for accurate energy appraisals in connection with
residential mortgage loans, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 27, 2025
Mr. Casten introduced the following bill; which was referred to the
Committee on Financial Services, and in addition to the Committee on
Veterans' Affairs, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To provide for accurate energy appraisals in connection with
residential mortgage loans, 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 ``Getting Renewable and Energy
Efficient Neighborhoods Appraisals Act of 2025'' or the ``GREEN
Appraisals Act of 2025''.
SEC. 2. GETTING RENEWABLE AND ENERGY EFFICIENT NEIGHBORHOODS ACCURATE
ENERGY APPRAISALS.
(a) Disclosure.--The head of each covered agency shall require that
any creditor to which an application for a covered loan is made shall
provide to the borrower, on the same date that the creditor delivers or
places in the mail the disclosures described under section
1026.19(e)(1)(iii)(A) of title 12, Code of Federal Regulations, for
such loan, a written disclosure that includes the following:
(1) A statement that the prospective borrower or current
homeowner may provide an energy report, or any information in
such report, regarding the property subject to the covered loan
to the creditor or to a qualified appraiser or other interested
party for consideration during a home appraisal or application
for a covered loan.
(2) A statement that the prospective borrower under the
covered loan has the right to request an energy report
regarding the property subject to the covered loan.
(3) A statement that, in developing an appraisal in
connection with such covered loan--
(A) a qualified appraiser will take the information
in the report into consideration; and
(B) the appraisers' final opinion of the value of
the property may be higher, lower, or no different than
if the energy report had not been available for the
appraiser to review.
(4) A statement that, as with any other data considered by
the appraiser that affects the appraiser's opinion of the value
of a property, consideration of such data may help or hurt the
ability of the prospective borrower to obtain a covered loan.
(b) Required Analysis.--In connection with a covered loan, the
creditor under such loan shall, in underwriting the loan, use the
appraised value of the subject property value as determined by a
qualified appraiser. The consideration of an energy report by the
qualified appraiser may not be used as a basis to reject a home
appraisal or application for a covered loan.
(c) Consideration of Energy Characteristics.--On and after March 1,
2026, the head of each covered agency shall require, with respect to
any covered loan for a property for which an energy report is
available, that upon the prospective borrower's consent the creditor
shall provide the appraiser with the energy report when the appraiser
receives the assignment, and any underwriting or verification systems
used by the creditor shall accommodate any appraisal that takes the
energy report into consideration.
(d) Consideration of Information.--A qualified appraiser to whom an
energy report is provided in connection with a covered loan shall take
the information in such report into consideration when developing an
appraised value of the property. In developing the appraised value of
the property, the qualified appraiser shall take into consideration--
(1) the energy efficiency characteristics of the property
for which the report was prepared, any renewable energy related
features of such property, estimated energy savings for such
property, the energy consumption for such property relative to
comparable homes, or any one or more of such items;
(2) whether such characteristics of the property are
relevant to the market value of the property; and
(3) any additional information, as determined by the
relevant head of a covered agency.
(e) Portability.--Upon the request of a prospective borrower under
a covered loan, the creditor shall provide a copy of an energy report
with respect to the property, at no cost, to the prospective borrower.
(f) Guidance.--
(1) In general.--The heads of the covered agencies, after
consultation with the advisory committee established pursuant
to paragraph (2), shall jointly prescribe guidance for
creditors to implement this section which--
(A) shall confirm the acceptance, by each of the
covered agencies, of all applicable approaches to value
utilized by appraisers to demonstrate market reaction
to energy efficiency and renewable energy;
(B) shall set forth procedures for consumer
disclosures, the preparation and sharing of energy
reports, and the provision of the reports to qualified
appraisers; and
(C) shall not provide for how an appraiser shall
consider information in an energy report.
(2) Advisory committee.--The heads of the covered agencies
shall jointly establish an advisory committee of stakeholders
to advise the heads of the covered agencies in carrying out
this section, which shall consist of representatives of housing
advocates, energy efficiency and renewable energy
organizations, energy raters, home builders, architects,
single-family mortgage creditors, consumer advocates,
appraisers, and other interested groups.
(3) Systems requirements.--Not later than the expiration of
the 2-year period beginning on the date of the enactment of
this Act, the heads of the covered agencies shall jointly
require a creditor originating a covered loan for which an
energy report is prepared under this section to use origination
and underwriting systems that review, score, or rate appraisals
in a manner consistent with the creditor guidance issued
pursuant to paragraph (1).
(g) Definitions.--In this section:
(1) Covered agency.--The term ``covered agency'' means--
(A) the Federal Housing Administration of the
Department of Housing and Urban Development;
(B) the Federal Housing Finance Agency, to the
extent that such Agency oversees and regulates the
enterprises, as such term is defined in section 1303 of
the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992 (12 U.S.C. 4502); except that any
requirement imposed by this section on such Agency or
the Director of such Agency shall be treated as a
requirement with respect to the Federal National
Mortgage Association and the Federal Home Loan Mortgage
Corporation, to be imposed and enforced pursuant to the
authority of such Director and Agency to supervise and
regulate such enterprises;
(C) the Government National Mortgage Association;
(D) the Rural Housing Service of the Department of
Agriculture; and
(E) the Department of Veterans Affairs.
(2) Covered loan.--The term ``covered loan'' means a
residential mortgage loan (as such term is defined in section
103 of the Truth in Lending Act (15 U.S.C. 1602)) that is made,
insured, purchased, guaranteed, or securitized by a covered
agency or intended to be purchased, guaranteed, or securitized
by a covered agency.
(3) Creditor.--The term ``creditor'' has the meaning given
such term in section 103 of the Truth in Lending Act (15 U.S.C.
1602).
(4) Energy report.--The term ``energy report'' means, with
respect to a property, an analysis that--
(A)(i) details the energy-related features in the
home;
(ii) estimates the expected energy costs or energy
savings specific to the property, or both, based on
specific information about the property; or
(iii) complies with both clauses (i) and (ii);
(B) estimates the expected energy generated from
installed renewable energy features; and
(C) is conducted--
(i) in accordance with the guidance issued
under this section;
(ii) in accordance with HERS by an
individual certified by the Residential Energy
Service Network, unless the Secretary finds
that the use of HERS does not further the
purposes of this section;
(iii) by the Department of Energy's Home
Energy Score; or
(iv) by other methods approved by the
Secretary, in consultation with the Secretary
of Energy and the advisory committee
established pursuant to subsection (f)(2), for
use under this section, which shall include a
quality assurance procedure approved by the
Secretary, in consultation with the Secretary
of Energy.
(5) Hers.--The term ``HERS'' means the Home Energy Rating
System of the Residential Energy Service Network.
(6) Qualified appraiser.--The term ``qualified appraiser''
means an appraiser who, with respect to the assignment to
conduct an appraisal--
(A) is licensed, qualified, or certified to conduct
an appraisal in the State in which the property is
located;
(B) has completed a course of 7 or more hours of
continuing education on the consideration of energy
reports in the appraisal process, which course--
(i) includes case studies;
(ii) includes an examination, which the
appraiser has passed; and
(iii) was submitted to, and approved by,
the Appraiser Qualification Board of the
Appraisal Foundation through its Course
Approval Program; and
(C) is, at the time of agreeing to perform the
assignment, competent to perform the assignment.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Financial Services, and in addition to the Committee on Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committee on Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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