Sponsors (3)
The bill tightens appraisal qualifications, reporting, and oversight to improve valuation quality and transparency, but those changes risk higher costs, workforce disruptions, administrative burdens, and short-term legal uncertainty that could slow or raise the price of homebuying.
Homebuyers, homeowners, and lenders will get more consistent and higher-quality FHA appraisals because the bill raises appraisal competency and education standards, standardizes trainee definitions, improves registry data, and supports training—improving valuation accuracy and trust in transactions.
Homebuyers, small businesses, lenders, and taxpayers should see expanded appraisal capacity and faster valuations because certified appraisers can use trainees and federal grants fund recruitment and training pipeline programs.
State agencies, lenders, and regulators will benefit from improved transparency and accountability as state licensing/disciplinary data are transmitted promptly to the national registry and fee changes require Council approval.
Homebuyers, homeowners, and appraisers may face higher costs and slower loan closings because new FHA-specific education and state-specific certification requirements increase training and administrative burdens and could shrink the pool of eligible appraisers.
Unclear or missing language in Section 6 creates legal and operational uncertainty for the Appraisal Subcommittee and federal regulators, risking short-term disruption to oversight, coordination, or funding and exposing institutions and taxpayers to unknown costs.
State appraiser agencies and taxpayers will face increased administrative and IT costs because states must report more credential categories and timely disciplinary actions to the national registry and the Subcommittee will have increased grant-oversight responsibilities.
Based on analysis of 6 sections of legislative text.
Raises FHA appraisal credentialing, education, competency, and registry-reporting requirements; adds Subcommittee fee and grant authorities and a new State trainee credential.
Requires higher and clearer appraisal credential, education, and competency standards for appraisers working on FHA-insured mortgages; creates a phased compliance timeline and directs HUD to issue mortgagee guidance. It also strengthens Appraisal Subcommittee authority to adjust certain registry fees (with Council approval), expands reporting of appraiser credentials and trainees, creates a new State credentialed trainee category, and authorizes the Subcommittee to award grants to states, nonprofits, and colleges to support appraisal workforce development. One insertion into the Appraisal Subcommittee statute is unspecified in the text provided, so its effect is unknown.
Official title: 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.
Introduced November 12, 2025 by Byron Donalds · Last progress November 12, 2025