Sponsors (2)
The bill aims to raise appraisal quality, expand training, and improve oversight—benefiting homeowners and lenders—while imposing new training, reporting, fee‑rule, and governance changes that may raise costs, create uneven effects across states and firms, and increase administrative burdens.
Homebuyers, mortgage borrowers, and lenders will see more consistent, higher-quality FHA and other appraisals because appraisers must meet verified FHA/USPAP competency and related training standards, reducing appraisal errors and (with HUD guidance) limiting transitional disruption.
State appraisers, trainees, and consumers will benefit from a clear federal definition of 'state credentialed trainee appraiser' plus mandatory state reporting to a national registry, improving oversight, transparency, and credential consistency across jurisdictions.
Appraisal management companies (and some small appraisal firms) could pay lower annual registry fees and benefit from the Appraisal Subcommittee's ability to correct fee formulas, reducing operating costs for those firms.
Appraisers—especially new entrants—will face added training costs and time to meet FHA and verification requirements, which could reduce local appraisal supply and slow mortgage closings for homeowners and buyers.
State appraisal agencies, HUD, and the Appraisal Subcommittee will incur increased administrative, reporting, and verification burdens and potential budget shortfalls, risking temporary disruptions in approvals and higher federal spending or reallocated oversight resources.
Multi-state appraisers, AMCs, and borrowers in some areas could face uneven effects—state-by-state credential choices, selective fee changes, grant winners, and cross-state licensing limits may produce competitive distortions and unequal geographic access to appraisals.
Based on analysis of 6 sections of legislative text.
Raises FHA appraiser education/competency standards, creates a State credentialed trainee appraiser category, lets the Appraisal Subcommittee reduce AMC registry fees and make grants to States for training.
Official title: 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 May 7, 2025 by Kevin Cramer · Last progress May 7, 2025
Requires higher and verifiable education and competency standards for appraisers on FHA-insured mortgages, creates a new trainee appraiser credential category, lets the Appraisal Subcommittee lower certain registry fees, and authorizes grants to State appraiser licensing agencies to support training and workforce needs. HUD must issue implementation guidance within set timeframes; several FFIEC/FAIR Act provisions are amended to add the trainee category and update reporting and registry rules.