Appraisal Modernization Act

This bill aims to make home appraisals fairer and more transparent. It would create a public, online database of home appraisal data so people can see how values are set across neighborhoods and lenders. Federal housing agencies must share past data going back to January 1, 2017, and then keep sharing new data every quarter; the database must be searchable and downloadable within two years. The database will include detailed information about how an appraisal was done and the properties used to compare value. The agency can adjust what’s shown to protect privacy, while giving regulators full, unredacted access for enforcement. Rules to run this system must be issued within a year .

It also gives consumers a clear right to challenge a low or flawed home appraisal. Lenders must review appraisals, tell borrowers how to ask for a “reconsideration of value,” and use simple, standard forms. A borrower can make one request before closing, or within 60 days after a denial, and can submit up to five better “comps” for the appraiser to consider. If serious problems aren’t fixed, the lender must order a new appraisal at its own cost and send the case to the right state board. If there’s reason to believe the appraisal shows discrimination, the lender must order a new appraisal, report it to enforcement, and can later recover the cost from the appraiser if discrimination is confirmed. Lenders must keep related records for seven years, and federal rules to implement these steps must be issued within a year .

Key points

• Who is affected:
  • Homebuyers and homeowners seeking a mortgage
  • Lenders and loan officers
  • Appraisers and appraisal management companies
  • The public, researchers, and regulators
• What changes:
  • Public appraisal database with detailed, searchable records to check consistency and fairness
  • Clear, one-time process to ask for a value review and, if needed, a new appraisal at the lender’s expense when there are serious issues or suspected discrimination
  • Standardized forms and timelines; required referrals to regulators when problems are found; seven-year recordkeeping by lenders
• When:
  • Agencies share past data within 180 days; start quarterly sharing within 1 year; public database live within 2 years; rules issued within 1 year
  • Borrower request allowed before closing or within 60 days after denial; lenders keep records for 7 years