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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6025 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 6025
To amend the National Housing Act to authorize State-licensed
appraisers to conduct appraisals in connection with mortgages insured
by the FHA and to ensure compliance with the existing appraiser
education and competency requirements, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 12, 2025
Mr. Donalds (for himself, Mr. Sherman, and Ms. Bynum) introduced the
following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To amend the National Housing Act to authorize State-licensed
appraisers to conduct appraisals in connection with mortgages insured
by the FHA and to ensure compliance with the existing appraiser
education and competency requirements, 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 Industry Improvement
Act''.
SEC. 2. APPRAISAL STANDARDS.
(a) Certification or Licensing.--
(1) In general.--Section 202(g)(5) of the National Housing
Act (12 U.S.C. 1708(g)(5)) is amended--
(A) by moving the paragraph two ems to the left;
and
(B) by striking subparagraphs (A) and (B) and
inserting the following:
``(A) be certified or licensed by the State in which the
property to be appraised is located, except that a Federal
employee who has as their primary duty conducting appraisal-
related activities and who chooses to become a State-licensed
or certified real estate appraiser need only to be licensed or
certified in 1 State or territory to perform appraisals on
mortgages insured by the Federal Housing Administration in all
States and territories;
``(B) meet the requirements under the competency rule set
forth in the Uniform Standards of Professional Appraisal
Practice before accepting an assignment; and
``(C) have demonstrated verifiable education in the
appraisal requirements established by the Federal Housing
Administration under this subsection, which shall include the
completion of a course or seminar that educates appraisers on
those appraisal requirements, which shall be provided by--
``(i) the Federal Housing Administration; or
``(ii) a third party, so long as the course is
approved by the Secretary or a State appraiser
certifying or licensing agency.''.
(2) Application.--Subparagraph (C) of section 202(g)(5) of
the National Housing Act (12 U.S.C. 1708(g)(5)), as added by
subparagraph (A), shall not apply with respect to any certified
appraiser approved by the Federal Housing Administration to
conduct appraisals on property securing a mortgage to be
insured by the Federal Housing Administration on or before the
effective date under paragraph (3)(C).
(b) Compliance With Verifiable Education and Competency
Requirements.--On and after the effective date under paragraph (3)(C),
no appraiser may conduct an appraisal on a property securing a mortgage
to be insured by the Federal Housing Administration unless--
(1) the appraiser is in compliance with the requirements
under subparagraphs (A) and (B) of section 202(g)(5) of such
Act (12 U.S.C. 1708(g)(5)), as amended by paragraph (1); and
(2) if the appraiser was not approved by the Federal
Housing Administration to conduct appraisals on mortgages
insured by the Federal Housing Administration before the date
on which the mortgagee letter or guidance take effect under
paragraph (3)(C), the appraiser is in compliance with
subparagraph (C) of such section 202(g)(5).
(c) Implementation.--Not later than the 240 days after the date of
enactment of this Act, the Secretary of Housing and Urban Development
shall issue a mortgagee letter or guidance that shall--
(1) implement the amendments made by paragraph (1);
(2) clearly set forth all of the specific requirements
under section 202(g)(5) of the National Housing Act (12 U.S.C.
1708(g)(5)), as amended by paragraph (1), for approval to
conduct appraisals on property secured by a mortgage to be
insured by the Federal Housing Administration, which shall
include--
(A) providing that, before the effective date of
the mortgagee letter or guidance, compliance with the
requirements under subparagraphs (A), (B), and (C) of
such section 202(g)(5), as amended by paragraph (1),
shall be considered to fulfill the requirements under
such subparagraphs; and
(B) providing a method for appraisers to
demonstrate such prior compliance; and
(3) take effect not later than the date that is 180 days
after the date on which the Secretary issues the mortgagee
letter or guidance.
SEC. 3. ANNUAL REGISTRY FEES FOR APPRAISAL MANAGEMENT COMPANIES.
Section 1109(a) of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (12 U.S.C. 3338(a)) is amended, in the matter
following clause (ii) of paragraph (4)(B), by adding at the end the
following: ``Subject to the approval of the Council, the Appraisal
Subcommittee may adjust fees established under clause (i) or (ii) to
carry out its functions under this Act.''.
SEC. 4. STATE CREDENTIALED TRAINEES.
(a) Maintenance on National Registry.--Section 1103(a) of the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989
(12 U.S.C. 3332(a)) is amended--
(1) in paragraph (3)--
(A) by inserting ``and State credentialed trainee
appraisers'' after ``licensed appraisers''; and
(B) by striking ``and'' at the end;
(2) by striking paragraph (4);
(3) by redesignating paragraphs (5) and (6) as paragraphs
(4) and (5), respectively; and
(4) in paragraph (4), as so redesignated--
(A) by striking ``year. The report shall also
detail'' and inserting ``year, details'';
(B) by striking ``provide'' and inserting
``provides''; and
(C) by striking the period at the end and inserting
``; and''.
(b) Annual Registry Fees.--
(1) In general.--Section 1109 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3338)
is amended--
(A) in the section heading, by striking ``or
licensed'' and inserting ``, licensed, and credentialed
trainee''; and
(B) in subsection (a)--
(i) in paragraph (1), by inserting ``, and
in the case of a State with a supervisory or
trainee program, a roster listing individuals
who have received a State trainee credential''
after ``this title''; and
(ii) by striking paragraph (2) and
inserting the following:
``(2) transmit reports on the issuance and renewal of
licenses, certifications, credentials, sanctions, and
disciplinary actions, including license, credential, and
certification revocations, on a timely basis to the national
registry of the Appraisal Subcommittee;''.
(2) Rule of construction.--Nothing in the amendments made
by subparagraph (A) shall require a State to establish or
operate a program for State credentialed trainee appraisers, as
defined in paragraph (12) of section 1121 of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989, as
added by subsection (d) of this section.
(c) Transactions Requiring the Services of a State Certified
Appraiser.--Section 1113 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 3342) is amended--
(1) by striking ``In determining'' and inserting ``(a) In
General.--In determining''; and
(2) by adding at the end the following:
``(b) Use of State Credentialed Trainee Appraisers.--In performing
an appraisal under this section, a State certified appraiser may use
the assistance of a State credentialed trainee appraiser or an
unlicensed trainee appraiser, except that a State certified appraiser
assisted by a trainee shall be liable for final work.''.
(d) Definition.--Section 1121 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 3350) is amended by
adding at the end the following:
``(12) State credentialed trainee appraiser.--The term
`State credentialed trainee appraiser' means an individual
who--
``(A) meets the minimum criteria established by the
Appraiser Qualification Board for a trainee appraiser
credential; and
``(B) is credentialed by a State appraiser
certifying and licensing agency.''.
SEC. 5. GRANTS FOR WORKFORCE AND TRAINING.
Section 1109(b) of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (12 U.S.C. 3338(b)) is amended--
(1) in paragraph (5)(B), by striking ``and'' at the end;
(2) in paragraph (6), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(7) to make grants to State appraiser certifying and
licensing agencies, nonprofit organizations, and institutions
of higher education to support the carrying out of education
and training activities or other activities related to
addressing appraiser industry workforce needs, including
recruiting and retaining workforce talent, such as through
scholarship assistance and career pipeline development.''.
SEC. 6. APPRAISAL SUBCOMMITTEE.
Section 1011 of the Federal Financial Institutions Examination
Council Act of 1978 (12 U.S.C. 3310) is amended, in the first sentence,
by inserting ``the Department of Veterans Affairs, the Rural Housing
Service of the Department of Agriculture, the Department of Housing and
Urban Development,'' after ``Financial Protection,''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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