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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5975 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 5975
To amend the Truth in Lending Act 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; to study the
feasibility of creating a national public appraisal database.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 7, 2025
Ms. Pressley introduced the following bill; which was referred to the
Committee on Financial Services, and in addition to the Committee on
Rules, 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 amend the Truth in Lending Act 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; to study the
feasibility of creating a national public appraisal database.
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. RECONSIDERATION OF VALUE.
(1) In general.--Section 129E of the Truth In Lending Act
(15 U.S.C. 1639e) is amended--
(A) by redesignating subsections (j) and (k) as
subsections (k) and (l), respectively; and
(B) 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 1 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 7-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 subsection (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.''.
(2) Rules and interpretative guidelines.--Section 129E(g)
of the Truth in Lending Act (15 U.S.C. 1639e(g)) is amended--
(A) in paragraph (1), by striking ``paragraph (2),
the Board'' and inserting ``paragraphs (2) and (3), the
Bureau''; and
(B) 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).''.
SEC. 3. PUBLIC APPRAISAL DATABASE.
(1) Covered agencies defined.--The term ``covered
agencies'' means--
(A) the Federal Housing Finance Agency, on behalf
of the Federal National Mortgage Association and the
Federal Home Loan Mortgage Corporation;
(B) the Department of Housing and Urban
Development, including the Federal Housing
Administration;
(C) the Department of Agriculture; and
(D) the Department of Veterans Affairs.
(2) Feasibility report.--No later than 240 days after the
date of enactment of this Act, the Comptroller General of the
United States shall issue a public report to Congress assessing
the feasibility of creating a publicly available appraisal
database that consists of a searchable and downloadable
appraisal level public use file that consolidates appraisal
data held or aggregated by covered agencies, which shall
include--
(A) the costs and benefits associated with
establishing and maintaining the public database;
(B) the benefits and risks associated with either
the Federal Housing Finance Agency or the Bureau of
Consumer Financial Protection being responsible for the
public database and whether there is another Federal
agency best suited for implementing and administering
such database;
(C) any safety and soundness, antitrust, or
consumer privacy-related risks associated with making
certain appraisal data factors publicly available,
including whether--
(i) there are any existing legal
requirements, including under the Home Mortgage
Disclosure Act of 1974 (12 U.S.C. 2801 et seq.)
and section 552 of title 5, United States Code
(commonly known as the ``Freedom of Information
Act''), or additional actions Federal agencies
could take to mitigate such risks, such as
modifying or aggregating data, or eliminating
personally identifiable information; and
(ii) there are any data factors that, if
made public, may violate conduct, ethics, or
other professional standards as they relate to
appraisals and appraisal or valuation
professionals;
(D) the feasibility of consolidating or matching
appraisal data held by covered agencies with
corresponding data that is required and made public
under the Home Mortgage Disclosure Act of 1974 (12
U.S.C. 2801 et seq.);
(E) whether the publication of any appraisal data
factors may pose unfair business advantages within the
valuation industry;
(F) the feasibility of including all valuation data
held by covered agencies, including data produced by
automated valuation models;
(G) the feasibility and benefits of making the full
appraisal dataset, including any modified fields,
available to--
(i) Federal agencies, including for
purposes related to enforcement and supervision
responsibilities;
(ii) relevant State licensing, supervision,
and enforcement agencies and State attorneys
general;
(iii) approved researchers, including
academics and nonprofit organizations that, in
connection with their mission, work to ensure
the fairness and consistency of home
valuations, including appraisals; and
(iv) any other entities identified by the
Comptroller General as having a compelling use
for disaggregated data;
(H) what appraisal data is already available in the
public domain; and
(I) the feasibility of incorporating legacy data
held by covered agencies during the period beginning on
January 1, 2017 and ending on the date of enactment of
this Act, and whether there are specific data points
not easily consolidated or matched, as described in
subparagraph (D), with more recent data.
(3) Purpose.--The database described in paragraph (2) shall
be used 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, valuation technologies, such
as automated valuation models, 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.
(4) Consultation.--As part of the information used in the
report required under paragraph (2), the Comptroller General of
the United States shall conduct interviews with--
(A) relevant Federal agencies;
(B) relevant State licensing, supervision, and
enforcement agencies and State attorneys general;
(C) appraisers and other home valuation industry
professionals;
(D) mortgage lending institutions;
(E) fair housing and fair lending experts; and
(F) any other relevant stakeholders as determined
by the Comptroller General.
(5) Hearing.--Upon the completion of the report under
paragraph (2), the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives shall each hold a hearing on
the findings of the report and the feasibility of establishing
a public appraisal-level appraisal database.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Financial Services, and in addition to the Committee on Rules, 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 Rules, 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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