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Introduced March 27, 2025 by Michael F. Bennet · Last progress March 27, 2025
The bill increases transparency and market recognition of home energy performance—potentially raising values for efficient homes and helping buyers—while imposing compliance, appraisal, and administrative costs that could raise mortgage costs or slow transactions in the short term.
Homeowners and homebuyers: energy reports can be supplied and must be considered in appraisals, which can increase the market value of energy-efficient homes.
Homebuyers and prospective borrowers: borrowers can request and obtain a property's energy report for free, lowering information costs when shopping for a home.
Borrowers and loan applicants: appraisals must rely on qualified appraiser values and cannot be rejected solely because an energy report was considered, reducing arbitrary denials tied to energy data.
Lenders, servicers, and ultimately borrowers: required compliance and IT upgrades within two years will impose costs on lenders/servicers that could be passed on to borrowers through higher mortgage costs or fees.
Appraisers and borrowers: mandated continuing education and changes to appraisal processes may reduce the supply of available appraisers or raise appraisal fees in the short term.
Homebuyers and lenders: if energy reports vary in quality or methodology, relying on them could make appraisals more variable and create valuation uncertainty for buyers and lenders.
Based on analysis of 2 sections of legislative text.
Requires lenders and appraisers to accept, share, and consider property energy reports in appraisals and underwriting, and directs agencies to issue joint valuation guidance.
Requires mortgage lenders to inform borrowers about property energy reports, allow borrowers to provide those reports to lenders and appraisers, and instruct appraisers to consider energy-related features when valuing a home. Lenders must use the appraiser’s value in underwriting, cannot reject a loan solely because of an energy report, and must provide energy reports to appraisers (with borrower consent) and to borrowers on request; major operational rules take effect March 1, 2026 and federal agencies must issue joint guidance on valuation approaches and procedures.