Sponsors (3)
Introduced November 12, 2025 by Byron Donalds · Last progress November 12, 2025
The bill strengthens appraisal standards, transparency, and workforce development to improve valuation quality and oversight, but does so at the cost of added compliance, administrative and IT burdens, potential short‑term appraiser shortages and higher costs for borrowers, and legal uncertainty from missing language.
Homebuyers and homeowners will get more consistent, higher-quality FHA appraisals because appraisers must meet USPAP competency, FHA-specific education, and clearer federal trainee definitions, improving valuation reliability for mortgage transactions.
Consumers, lenders, and the market will gain more appraisal capacity and faster turnarounds as grants expand the appraiser pipeline and certified appraisers can use trainees to assist, helping reduce delays and potentially lower appraisal costs over time.
Lenders, regulators, and consumers will have better transparency and information because State appraiser agencies must promptly transmit licenses, credentials, and disciplinary actions to the national registry, improving oversight and risk assessment.
Homebuyers and borrowers could face higher appraisal fees and slower loan closings because state-specific certification and new FHA‑approved education requirements may reduce the available pool of appraisers and increase per‑appraisal costs.
The missing or unclear language in Section 6 creates legal and operational uncertainty for the Appraisal Subcommittee, federal regulators, and financial institutions, risking short‑term disruption to oversight and coordination.
State appraiser agencies and taxpayers may face increased administrative, reporting, and IT upgrade costs to comply with broader credential reporting and to support grant administration and oversight.
Based on analysis of 6 sections of legislative text.
Tightens FHA appraiser certification, competency, and education rules; updates registry/reporting and fee authority; creates a trainee credential and authorizes Subcommittee grants for training and workforce development.
Requires appraisers for FHA-insured mortgages to meet state certification or licensing and specific competency and FHA-education requirements, with HUD required to issue implementing mortgagee guidance on a set timeline. Updates the national appraisal regulatory framework by adding a new trainee credential category, changing registry/fee and reporting authorities, and authorizing the Appraisal Subcommittee to make grants to support appraiser education, recruiting, and retention. Changes also allow certain Federal appraisers to operate nationwide while preserving certified appraiser liability for final work, and add an express Council approval step for adjustments to per-company registry fees; one statutory insertion is incomplete in the bill text, so its effect is undetermined.