House BillHR 6025Housing and Community Development
Appraisal Industry Improvement Act
INTRO NOV 12· LAST ACTION NOV 12
READING
7MIN
COSPONSORS
2
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8
Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
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This bill matters because it could significantly impact the speed and accessibility of homeownership, especially for first-time buyers and those relying on FHA-insured mortgages. By expanding the pool of appraisers eligible to work on FHA loans, the bill aims to address potential appraisal delays that can hold up home sales. This could make it quicker and easier for people to buy homes.
Additionally, the new training requirements for FHA appraisals aim to ensure that these valuations are consistent and adhere to FHA's specific standards, which helps protect both buyers and lenders. For the appraisal profession, the bill's provisions for trainee appraisers could help foster new talent and improve transparency in the training process, addressing concerns about a shrinking appraiser workforce. If this bill becomes law, it could streamline the mortgage process, ensure specialized expertise for FHA loans, and support the future of the appraisal industry; if it doesn't, the current appraisal eligibility and training requirements for FHA loans would remain in place, potentially continuing existing challenges related to appraiser availability and specialized knowledge.
KEY PROVISIONS
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PROVISION 01
Allows state-licensed appraisers to conduct appraisals for mortgages insured by the Federal Housing Administration (FHA).
This provision increases the pool of appraisers available for FHA loans, potentially reducing appraisal delays for homebuyers.
PROVISION 02
Requires all appraisers conducting FHA appraisals to complete specific, verifiable education on FHA appraisal requirements.
This ensures that appraisers working on FHA loans have specialized knowledge of FHA's unique standards, promoting consistency and quality.
PROVISION 03
Includes state-credentialed trainee appraisers on the national registry and explicitly allows them to assist certified appraisers.
This formalizes the role of trainees, makes their progress more transparent, and supports the development of the future appraiser workforce.
PROVISION 04
Permits federal employees whose primary duty is appraisal to perform FHA appraisals nationwide with a single state license.
This streamlines the licensing requirements for a specific group of federal appraisers, allowing them greater flexibility in their work.
This bill matters because it could significantly impact the speed and accessibility of homeownership, especially for first-time buyers and those relying on FHA-insured mortgages. By expanding the pool of appraisers eligible to work on FHA loans, the bill aims to address potential appraisal delays that can hold up home sales. This could make it quicker and easier for people to buy homes.
Additionally, the new training requirements for FHA appraisals aim to ensure that these valuations are consistent and adhere to FHA's specific standards, which helps protect both buyers and lenders. For the appraisal profession, the bill's provisions for trainee appraisers could help foster new talent and improve transparency in the training process, addressing concerns about a shrinking appraiser workforce. If this bill becomes law, it could streamline the mortgage process, ensure specialized expertise for FHA loans, and support the future of the appraisal industry; if it doesn't, the current appraisal eligibility and training requirements for FHA loans would remain in place, potentially continuing existing challenges related to appraiser availability and specialized knowledge.
KEY PROVISIONS
AI-extracted
high
Allows state-licensed appraisers to conduct appraisals for mortgages insured by the Federal Housing Administration (FHA).
This provision increases the pool of appraisers available for FHA loans, potentially reducing appraisal delays for homebuyers.
high
Requires all appraisers conducting FHA appraisals to complete specific, verifiable education on FHA appraisal requirements.
This ensures that appraisers working on FHA loans have specialized knowledge of FHA's unique standards, promoting consistency and quality.
med
Includes state-credentialed trainee appraisers on the national registry and explicitly allows them to assist certified appraisers.
This formalizes the role of trainees, makes their progress more transparent, and supports the development of the future appraiser workforce.
low
Permits federal employees whose primary duty is appraisal to perform FHA appraisals nationwide with a single state license.
This streamlines the licensing requirements for a specific group of federal appraisers, allowing them greater flexibility in their work.
Not later than 240 days after the date of enactment of this Act
Secretary of Housing and Urban Development must issue a mortgagee letter or guidance to implement the bill's amendments.
Not later than 180 days after the date on which the Secretary issues the letter or guidance
The mortgagee letter or guidance issued by the Secretary of HUD must take effect.
GLOSSARY
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FHA (Federal Housing Administration)
A government agency that provides mortgage insurance on loans made by FHA-approved lenders, helping more people qualify for homeownership.
Appraisal
An expert, unbiased estimate of a property's value, typically required during a real estate transaction or for mortgage lending.
State-licensed appraiser
A professional who meets state-mandated education and experience requirements to perform real estate appraisals, generally for less complex properties.
State-certified appraiser
A professional who meets higher state-mandated education and experience requirements than a licensed appraiser, qualified to appraise all types of residential properties and often more complex commercial properties.
Appraisal Management Company (AMC)
An independent third-party company that manages the process of ordering and receiving appraisals for mortgage lenders, connecting lenders with qualified appraisers.
Uniform Standards of Professional Appraisal Practice (USPAP)
A widely recognized set of quality standards and ethical guidelines that real estate appraisers in the United States must follow.
Mortgagee letter or guidance
ACTION TIMELINE
2 EVENTS
NOV 12, 25
Introduced in House
INTROREFERRAL
NOV 12, 25
Referred to the House Committee on Financial Services.
Official written communications or instructions issued by the Department of Housing and Urban Development (HUD) to lenders (mortgagees) regarding FHA programs, policies, and procedures.
State credentialed trainee appraiser
An individual who is formally recognized by a state as undergoing training to become a licensed or certified appraiser, working under the supervision of a qualified appraiser.
