119-hr2413

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2413 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 2413

 To provide for accurate energy appraisals in connection with 
 residential mortgage loans, and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 March 27, 2025

 Mr. Casten introduced the following bill; which was referred to the 
 Committee on Financial Services, and in addition to the Committee on 
 Veterans' Affairs, for a period to be subsequently determined by the 
 Speaker, in each case for consideration of such provisions as fall 
 within the jurisdiction of the committee concerned

_______________________________________________________________________

 A BILL

 To provide for accurate energy appraisals in connection with 
 residential mortgage loans, 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 ``Getting Renewable and Energy 
Efficient Neighborhoods Appraisals Act of 2025'' or the ``GREEN 
Appraisals Act of 2025''.

SEC. 2. GETTING RENEWABLE AND ENERGY EFFICIENT NEIGHBORHOODS ACCURATE 
 ENERGY APPRAISALS.

    (a) Disclosure.--The head of each covered agency shall require that 
any creditor to which an application for a covered loan is made shall 
provide to the borrower, on the same date that the creditor delivers or 
places in the mail the disclosures described under 

section 1026.19

    (e)

    (1)
            (iii) (A) of title 12, Code of Federal Regulations, for 
such loan, a written disclosure that includes the following:

    (1) A statement that the prospective borrower or current 
 homeowner may provide an energy report, or any information in 
 such report, regarding the property subject to the covered loan 
 to the creditor or to a qualified appraiser or other interested 
 party for consideration during a home appraisal or application 
 for a covered loan.

    (2) A statement that the prospective borrower under the 
 covered loan has the right to request an energy report 
 regarding the property subject to the covered loan.

    (3) A statement that, in developing an appraisal in 
 connection with such covered loan--
        (A) a qualified appraiser will take the information 
 in the report into consideration; and
        (B) the appraisers' final opinion of the value of 
 the property may be higher, lower, or no different than 
 if the energy report had not been available for the 
 appraiser to review.

    (4) A statement that, as with any other data considered by 
 the appraiser that affects the appraiser's opinion of the value 
 of a property, consideration of such data may help or hurt the 
 ability of the prospective borrower to obtain a covered loan.

    (b) Required Analysis.--In connection with a covered loan, the 
creditor under such loan shall, in underwriting the loan, use the 
appraised value of the subject property value as determined by a 
qualified appraiser. The consideration of an energy report by the 
qualified appraiser may not be used as a basis to reject a home 
appraisal or application for a covered loan.
            (c) Consideration of Energy Characteristics.--On and after March 1, 
2026, the head of each covered agency shall require, with respect to 
any covered loan for a property for which an energy report is 
available, that upon the prospective borrower's consent the creditor 
shall provide the appraiser with the energy report when the appraiser 
receives the assignment, and any underwriting or verification systems 
used by the creditor shall accommodate any appraisal that takes the 
energy report into consideration.
            (d) Consideration of Information.--A qualified appraiser to whom an 
energy report is provided in connection with a covered loan shall take 
the information in such report into consideration when developing an 
appraised value of the property. In developing the appraised value of 
the property, the qualified appraiser shall take into consideration--

    (1) the energy efficiency characteristics of the property 
 for which the report was prepared, any renewable energy related 
 features of such property, estimated energy savings for such 
 property, the energy consumption for such property relative to 
 comparable homes, or any one or more of such items;

    (2) whether such characteristics of the property are 
 relevant to the market value of the property; and

    (3) any additional information, as determined by the 
 relevant head of a covered agency.

    (e) Portability.--Upon the request of a prospective borrower under 
a covered loan, the creditor shall provide a copy of an energy report 
with respect to the property, at no cost, to the prospective borrower.

    (f) Guidance.--

    (1) In general.--The heads of the covered agencies, after 
 consultation with the advisory committee established pursuant 
 to paragraph

    (2) , shall jointly prescribe guidance for 
 creditors to implement this section which--
        (A) shall confirm the acceptance, by each of the 
 covered agencies, of all applicable approaches to value 
 utilized by appraisers to demonstrate market reaction 
 to energy efficiency and renewable energy;
        (B) shall set forth procedures for consumer 
 disclosures, the preparation and sharing of energy 
 reports, and the provision of the reports to qualified 
 appraisers; and
            (C) shall not provide for how an appraiser shall 
 consider information in an energy report.

    (2) Advisory committee.--The heads of the covered agencies 
 shall jointly establish an advisory committee of stakeholders 
 to advise the heads of the covered agencies in carrying out 
 this section, which shall consist of representatives of housing 
 advocates, energy efficiency and renewable energy 
 organizations, energy raters, home builders, architects, 
 single-family mortgage creditors, consumer advocates, 
 appraisers, and other interested groups.

    (3) Systems requirements.--Not later than the expiration of 
 the 2-year period beginning on the date of the enactment of 
 this Act, the heads of the covered agencies shall jointly 
 require a creditor originating a covered loan for which an 
 energy report is prepared under this section to use origination 
 and underwriting systems that review, score, or rate appraisals 
 in a manner consistent with the creditor guidance issued 
 pursuant to paragraph

    (1) .

    (g) 

=== Definitions. ===
-In this section:

    (1) Covered agency.--The term ``covered agency'' means--
        (A) the Federal Housing Administration of the 
 Department of Housing and Urban Development;
        (B) the Federal Housing Finance Agency, to the 
 extent that such Agency oversees and regulates the 
 enterprises, as such term is defined in 

section 1303 of 
 the Federal Housing Enterprises Financial Safety and 
 Soundness Act of 1992 (12 U.S.C. 4502); except that any 
 requirement imposed by this section on such Agency or 
 the Director of such Agency shall be treated as a 
 requirement with respect to the Federal National 
 Mortgage Association and the Federal Home Loan Mortgage 
 Corporation, to be imposed and enforced pursuant to the 
 authority of such Director and Agency to supervise and 
 regulate such enterprises;
            (C) the Government National Mortgage Association;
            (D) the Rural Housing Service of the Department of 
 Agriculture; and
        (E) the Department of Veterans Affairs.

    (2) Covered loan.--The term ``covered loan'' means a 
 residential mortgage loan (as such term is defined in 

section 103 of the Truth in Lending Act (15 U.S.C. 1602)) that is made, 
 insured, purchased, guaranteed, or securitized by a covered 
 agency or intended to be purchased, guaranteed, or securitized 
 by a covered agency.

    (3) Creditor.--The term ``creditor'' has the meaning given 
 such term in 

section 103 of the Truth in Lending Act (15 U.S.C. 
 1602).

    (4) Energy report.--The term ``energy report'' means, with 
 respect to a property, an analysis that--
        (A)
            (i) details the energy-related features in the 
 home;
            (ii) estimates the expected energy costs or energy 
 savings specific to the property, or both, based on 
 specific information about the property; or
            (iii) complies with both clauses
            (i) and
            (ii) ;
        (B) estimates the expected energy generated from 
 installed renewable energy features; and
            (C) is conducted--
            (i) in accordance with the guidance issued 
 under this section;
            (ii) in accordance with HERS by an 
 individual certified by the Residential Energy 
 Service Network, unless the Secretary finds 
 that the use of HERS does not further the 
 purposes of this section;
            (iii) by the Department of Energy's Home 
 Energy Score; or
            (iv) by other methods approved by the 
 Secretary, in consultation with the Secretary 
 of Energy and the advisory committee 
 established pursuant to subsection

    (f)

    (2) , for 
 use under this section, which shall include a 
 quality assurance procedure approved by the 
 Secretary, in consultation with the Secretary 
 of Energy.

    (5) Hers.--The term ``HERS'' means the Home Energy Rating 
 System of the Residential Energy Service Network.

    (6) Qualified appraiser.--The term ``qualified appraiser'' 
 means an appraiser who, with respect to the assignment to 
 conduct an appraisal--
        (A) is licensed, qualified, or certified to conduct 
 an appraisal in the State in which the property is 
 located;
        (B) has completed a course of 7 or more hours of 
 continuing education on the consideration of energy 
 reports in the appraisal process, which course--
            (i) includes case studies;
            (ii) includes an examination, which the 
 appraiser has passed; and
            (iii) was submitted to, and approved by, 
 the Appraiser Qualification Board of the 
 Appraisal Foundation through its Course 
 Approval Program; and
            (C) is, at the time of agreeing to perform the 
 assignment, competent to perform the assignment.
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