Sponsors (2)
Introduced May 7, 2025 by Kevin Cramer · Last progress May 7, 2025
The bill aims to improve appraisal quality and expand the appraisal workforce through certification, training, reporting, and grants, but does so at the cost of added compliance and training burdens, potential multi‑state practice complications, and risks to oversight funding that could slow transactions or shift costs to consumers and taxpayers.
Homebuyers, mortgage borrowers, and lenders will receive more consistent, higher-quality appraisals and stronger consumer protection because appraisers must meet state certification, USPAP competency, FHA-specific training, and clearer federal/state oversight and reporting.
Appraiser workforce capacity and skills will expand — HUD/state-authorized training, a recognized 'state credentialed trainee' pathway, and federal training options/grants should increase the supply of qualified appraisers and speed property valuations.
Appraisal management companies (AMCs) may face lower annual registry fees when the Appraisal Subcommittee finds fees harmful, which could reduce costs for AMCs and — if savings are passed on — lower costs for lenders and borrowers.
New training and certification requirements (including FHA‑specific training and state reporting/compliance) will increase time and costs for appraisers, likely reducing available appraisers, slowing loan closings, and raising costs for borrowers and lenders.
State-by-state licensure and nonuniform trainee credentialing risks burdening appraisers who work across state lines and creating uneven credential recognition, reducing capacity in multi‑state markets.
Lowering AMC registry fees could shrink Appraisal Subcommittee revenue, weakening oversight and enforcement capacity and increasing the risk of appraisal quality problems for borrowers.
Based on analysis of 6 sections of legislative text.
Raises FHA appraisal education and credentialing standards, creates a State-credentialed trainee category, lets the ASC alter AMC fees downward, and expands ASC grant authority to states for staffing/training.
Requires stronger education and credentialing for appraisers who perform FHA-insured (Title II) mortgage appraisals, creates a new State-credentialed trainee appraiser category, lets the Appraisal Subcommittee reduce certain fees, expands grant authority to support state appraiser workforce activities, and updates state reporting duties to the national appraisal registry. HUD must issue implementing guidance within 240 days and the new FHA appraisal rules must take effect no later than 180 days after that guidance is issued.