Sponsors (2)
The bill raises appraisal qualification standards and builds workforce and oversight tools to improve FHA appraisal accuracy and speed transactions, but it imposes costs, tighter timelines, and potential oversight funding trade-offs that may disrupt appraiser supply and unevenly affect small firms and some States.
Homebuyers, FHA borrowers, and taxpayers benefit from more accurate and consistent FHA appraisals because appraisers on FHA Title II assignments must be State-licensed/certified, meet USPAP competency, and complete verifiable FHA appraisal education.
Homebuyers, sellers, and lenders gain faster access to appraisals and reduced delays because State certified appraisers may use State-credentialed or trainee appraisers and grant authority supports education/training to expand the appraisal workforce.
Financial institutions and the public get improved oversight and transparency because States must transmit licensing, credentialing, sanction, and disciplinary reports to the national registry and the bill defines a national trainee-appraiser category.
Small appraisal firms and independent appraisers will face new training, licensing, and compliance costs to meet State certification and verifiable FHA education requirements.
Short implementation timelines together with stricter entry requirements risk reducing the pool of eligible appraisers and disrupting workforce availability, which could slow FHA loan closings, home sales, and refinances in the near term.
Allowing reductions in AMC registry fees could shrink the Appraisal Subcommittee’s fee revenue and budget, weakening oversight and increasing the risk of appraisal quality problems or fraud for lenders and consumers.
Based on analysis of 6 sections of legislative text.
Introduced May 7, 2025 by Kevin Cramer · Last progress May 7, 2025
Requires stronger appraisal qualifications for FHA-insured title II mortgages by mandating state certification or licensing, USPAP competency, and specific FHA-related education for appraisers (with a limited grandfathering rule for currently FHA‑approved appraisers). Creates a new State‑credentialed trainee appraiser category, lets the Appraisal Subcommittee change the annual registry fee formula for appraisal management companies, and authorizes the Subcommittee to make grants to state appraiser licensing agencies for workforce training and education. HUD must issue implementing guidance for the FHA appraisal changes within set timeframes.