Sponsors (3)
The bill seeks to raise appraisal quality, transparency, and workforce capacity through education, state certification, reporting, and grants, but does so at the cost of higher administrative burden, potential short-term appraiser shortages and fee increases, and some legal/operational uncertainty from unclear language.
Homebuyers and homeowners: Appraisals for FHA loans should become more consistent and higher-quality because appraisers must meet USPAP competency, complete FHA-specific education, and satisfy state certification rules.
State appraiser agencies and lenders: States will be required to transmit licenses, certifications, credentials, and disciplinary actions promptly to the national registry, improving transparency and information available to lenders and regulators.
Appraiser workforce and consumers: Federal grants to state agencies, nonprofits, and universities will fund scholarships and pipeline programs to recruit and train new appraisers, expanding capacity and speeding property valuations and transactions.
Homeowners, borrowers, and appraisers: New FHA-specific education requirements and state-specific certification could reduce the available appraiser workforce, raise appraisal fees, and slow or complicate FHA loan closings.
Appraisal Subcommittee, regulators, and federal employees: Missing or unclear inserted language in one section creates legal and operational uncertainty that could disrupt oversight, coordination among regulators, and create unknown fiscal or consumer-protection risks.
State appraiser agencies and taxpayers: Requiring states to report more credential categories and timely disciplinary actions will increase administrative workload and may require IT/system upgrades, imposing costs on state agencies and potentially taxpayers.
Based on analysis of 6 sections of legislative text.
Tightens FHA appraiser certification and education rules, adds trainee credentialing and reporting, expands Appraisal Subcommittee fee and grant authorities, and requires HUD mortgagee guidance with phased compliance.
Introduced November 12, 2025 by Byron Donalds · Last progress November 12, 2025
Changes appraisal rules for FHA-backed mortgages, raises education and competency requirements for appraisers, creates a new trainee credential category, expands the Appraisal Subcommittee’s fee and grant powers, and requires HUD to issue mortgagee guidance on implementing the changes within specified timeframes. The bill also amends reporting duties for States to add credentials and clarifies who may assist certified appraisers; one intended amendment to the Appraisal Subcommittee provision is missing from the text, creating uncertainty about that change. The bill phases compliance so currently approved FHA appraisers get an exemption from the new education requirement until HUD’s guidance takes effect, but after the effective date appraisers must meet the new certification, competency, and education standards to perform FHA appraisals. The Appraisal Subcommittee may adjust registry fees with Council approval and may make grants to states, nonprofits, and colleges for appraisal workforce needs using its collected or appropriated funds.