[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1635 Introduced in Senate (IS)]
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119th CONGRESS
1st Session
S. 1635
To amend the National Housing Act to authorize State-licensed
appraisers to conduct appraisals in connection with mortgages insured
by the FHA and to ensure compliance with the existing appraiser
education and competency requirements, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 7, 2025
Mr. Cramer (for himself and Mr. Gallego) introduced the following bill;
which was read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
A BILL
To amend the National Housing Act to authorize State-licensed
appraisers to conduct appraisals in connection with mortgages insured
by the FHA and to ensure compliance with the existing appraiser
education and competency requirements, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Appraisal Industry Improvement
Act''.
SEC. 2. APPRAISER STANDARDS.
(a) Certification or Licensing.--
(1) In general.--Section 202(g)(5) of the National Housing
Act (12 U.S.C. 1708(g)(5)) is amended--
(A) by moving the paragraph two ems to the left;
and
(B) by striking subparagraphs (A) and (B) and
inserting the following:
``(A) be certified or licensed by the State in which the
property to be appraised is located, except that a Federal
employee who chooses to become State-licensed or certified real
estate appraisers need to only be licensed or certified in 1
State or territory to perform real estate appraisal duties as a
Federal employee in all States and territories;
``(B) meet the competency requirements described in the
Uniform Standards of Professional Appraisal Practice before
accepting an assignment; and
``(C) have demonstrated verifiable education in the
appraisal requirements established by the Federal Housing
Administration under this subsection, which shall include the
completion of a course or seminar that educates appraisers on
those appraisal requirements, which shall be--
``(i) provided by the Federal Housing
Administration or a private or public organization with
special competence in and knowledge of appraisal
education through contracts, grants, or other
assistance provided by the Secretary; or
``(ii) approved by the Course Approval Program of
the Appraiser Qualification Board of the Appraisal
Foundation or a State appraiser certifying and
licensing agency.''.
(2) Application.--Subparagraph (C) of section 202(g)(5) of
the National Housing Act (12 U.S.C. 1708(g)(5)), as added by
paragraph (1), shall not apply with respect to any appraiser
approved by the Federal Housing Administration to conduct
appraisals on mortgages insured under title II of the National
Housing Act (12 U.S.C. 1707 et seq.) on or before the date on
which the mortgagee letter or other guidance or regulations
take effect under subsection (c)(3).
(b) Compliance With Verifiable Education and Competency
Requirements.--Effective beginning on the date on which the mortgagee
letter or other notice or regulations take effect under subsection
(c)(3), no appraiser may conduct an appraisal for any mortgage insured
under title II of the National Housing Act (12 U.S.C. 1707 et seq.)
unless--
(1) the appraiser is in compliance with the requirements
under subparagraphs (A) and (B) of section 202(g)(5) of such
Act (12 U.S.C. 1708(g)(5)), as amended by subsection (a); and
(2) if the appraiser was not approved by the Federal
Housing Administration to conduct appraisals on mortgages
insured under title II of the National Housing Act (12 U.S.C.
1707 et seq.) before the date on which the mortgagee letter or
other notices or regulations take effect under subsection
(c)(3), the appraiser is in compliance with subparagraph (C) of
such section 202(g)(5).
(c) Implementation.--Not later than the 240 days after the date of
enactment of this Act, the Secretary of Housing and Urban Development
shall issue a mortgagee letter or other notice or regulations that
shall--
(1) implement the amendments made by subsection (a);
(2) clearly set forth all of the specific requirements
under section 202(g)(5) of the National Housing Act (12 U.S.C.
1708(g)(5)), as amended by subsection (a), for approval to
conduct appraisals under title II of such Act (12 U.S.C. 1707
et seq.), which shall include--
(A) providing that, before the effective date of
the mortgagee letter or other guidance or regulations,
a demonstration of competency and completion of
training that meet the requirements under subparagraphs
(A), (B), and (C) of such section 202(g)(5), as amended
by subsection (a), shall be considered to fulfill the
requirements under such subparagraphs; and
(B) providing a method for appraisers to
demonstrate such prior competency and completion; and
(3) take effect not later than the date that is 180 days
after the date on which the Secretary issues the mortgagee
letter or other notice or regulations.
SEC. 3. ANNUAL REGISTRY FEES FOR APPRAISAL MANAGEMENT COMPANIES.
Section 1109(a) of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (12 U.S.C. 3338(a)) is amended, in the matter
following clause (ii) of paragraph (4)(B), by adding at the end the
following: ``If the Appraisal Subcommittee determines that the fees
established under clause (i) or (ii) result in adverse consequences or
are otherwise not appropriately tailored to meet the functions of the
Appraisal Subcommittee under this Act, the Appraisal Subcommittee may
establish a new formula to decrease the amount of the fees.''.
SEC. 4. STATE CREDENTIALED TRAINEE APPRAISERS.
(a) Maintenance on National Registry.--Section 1103(a) of the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989
(12 U.S.C. 3332(a)) is amended--
(1) in paragraph (3)--
(A) by inserting ``and State credentialed trainee
appraisers'' after ``licensed appraisers''; and
(B) by striking ``and'' at the end;
(2) by striking paragraph (4);
(3) by redesignating paragraphs (5) and (6) as paragraphs
(4) and (5), respectively; and
(4) in paragraph (4), as so redesignated--
(A) by striking ``year. The report shall also
detail'' and inserting ``year, details'';
(B) by striking ``provide'' and inserting
``provides''; and
(C) by striking the period at the end and inserting
``; and''.
(b) Annual Registry Fees.--
(1) In general.--Section 1109 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3338)
is amended--
(A) in the section heading, by striking ``or
licensed'' and inserting ``, licensed, and credentialed
trainee''; and
(B) in subsection (a)--
(i) in paragraph (1), by inserting ``, and
in the case of a State with a supervisory or
trainee program, a roster listing individuals
who have received a State trainee credential''
after ``this title'';
(ii) by striking paragraph (2) and
inserting the following:
``(2) transmit reports on the issuance and renewal of
licenses, certifications, credentials, sanctions, and
disciplinary actions on a timely basis to the national registry
of the Appraisal Subcommittee;''; and
(iii) in paragraph (4)(A)--
(I) by inserting ``including State
credentialed trainee appraisers,''
after ``transactions,''; and
(II) by inserting ``and from State
credentialed trainee appraisers, an
annual registry fee of not more than
$20,'' after ``$40,''.
(2) Rule of construction.--Nothing in the amendments made
by paragraph (1) shall require a State to establish or operate
a program for State credentialed trainee appraisers, as defined
in paragraph (12) of section 1121 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989, as added by
subsection (d) of this section.
(c) Transactions Requiring the Services of a State Certified
Appraiser.--Section 1113 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 3342) is amended--
(1) by striking ``In determining'' and inserting ``(a) In
General.--In determining''; and
(2) by adding at the end the following:
``(b) Use of State Credentialed Trainee Appraisers.--In performing
an appraisal under this section, a State certified appraiser may use
the assistance of a State credentialed trainee appraiser or an
unlicensed trainee appraiser.''.
(d) Definition.--Section 1121 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 3350) is amended by
adding at the end the following:
``(12) State credentialed trainee appraiser.--The term
`State credentialed trainee appraiser' means an individual
who--
``(A) meets the minimum criteria established by the
Appraiser Qualification Board for a trainee appraiser
credential; and
``(B) is credentialed by a State appraiser
certifying and licensing agency.''.
SEC. 5. GRANTS FOR WORKFORCE AND TRAINING.
Section 1109(b) of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (12 U.S.C. 3338(b)) is amended--
(1) in paragraph (5), by striking ``and'' at the end;
(2) in paragraph (6), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(7) to make grants to State appraiser certifying and
licensing agencies to support the carrying out of education and
training activities or other activities deemed appropriate by
the Appraisal Subcommittee for purposes of addressing appraiser
industry workforce needs.''.
SEC. 6. APPRAISAL SUBCOMMITTEE.
Section 1011 of the Federal Financial Institutions Examination
Council Act of 1978 (12 U.S.C. 3310) is amended, in the first sentence,
by inserting ``the Department of Veterans Affairs, the Rural Housing
Service of the Department of Agriculture, the Department of Housing and
Urban Development,'' after ``Financial Protection,''.
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