Sponsors
The bill increases borrower transparency and protects against appraisal-based loan denials while encouraging energy upgrades and potential property-value gains, but it imposes compliance and training costs on lenders, appraisers, and taxpayers and may create privacy and paperwork burdens that could outweigh benefits if markets do not value energy features.
Homebuyers and homeowners can submit or request energy reports that may raise appraised values and improve loan terms or home equity.
Borrowers gain the right to obtain energy reports at no cost on request, increasing transparency about a property's energy performance during a real estate transaction.
Homeowners and small-business owners may face stronger market recognition for efficiency and renewable features because the bill standardizes consideration of energy attributes, encouraging energy upgrades.
Financial institutions and taxpayers will incur administrative and IT upgrade costs to implement new appraisal, disclosure, and underwriting processes.
Appraisers must complete mandated continuing education and follow new procedures, raising their costs and potentially reducing the number of available appraisers in some areas.
Homeowners could face privacy concerns or inconvenience from sharing detailed energy reports with multiple parties during loan processing.
Based on analysis of 2 sections of legislative text.
Mandates that lenders and appraisers consider residential energy reports in mortgage appraisal and underwriting, requires borrower disclosure and procedures for sharing reports.
Introduced March 27, 2025 by Michael F. Bennet · Last progress March 27, 2025
Requires lenders and appraisers to accept and consider residential energy reports (or information from them) during mortgage appraisal and underwriting for loans that trigger certain TILA disclosures. Lenders must give borrowers a written notice about the right to obtain and share an energy report, share available reports with appraisers (with borrower consent) and borrowers (on request, free), and use the appraised value produced by a qualified appraiser when underwriting. Federal agencies must issue joint implementation guidance and set procedures; the rules take effect March 1, 2026.