119-s2322

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2322 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 2322

 To amend the Federal Housing Enterprises Safety and Soundness Act of 
 1992 to require that financial institutions, appraisal management 
 companies, appraisers, and other valuation professionals are serving 
the housing market in a manner that is efficient and consistent for all 
 mortgage loan applicants, borrowers, and communities, and for other 
 purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 July 17, 2025

Mr. Warnock (for himself, Ms. Alsobrooks, Ms. Blunt Rochester, Mr. Kim, 
 Mr. Booker, and Ms. Warren) introduced the following bill; which was 
read twice and referred to the Committee on Banking, Housing, and Urban 
 Affairs

_______________________________________________________________________

 A BILL

 To amend the Federal Housing Enterprises Safety and Soundness Act of 
 1992 to require that financial institutions, appraisal management 
 companies, appraisers, and other valuation professionals are serving 
the housing market in a manner that is efficient and consistent for all 
 mortgage loan applicants, borrowers, and communities, 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 Modernization Act''.

SEC. 2. PUBLIC APPRAISAL DATABASE.

    (a) In General.--The Federal Housing Enterprises Safety and 
Soundness Act of 1992 (12 U.S.C. 4501 et seq.) is amended by inserting 
after 

section 1313B (12 U.S.C. 4513b) the following:

``

SEC. 1313C. PUBLIC APPRAISAL DATABASE.

 ``

    (a) 

=== Purpose ===
-The purpose of this section is to provide the 
public, the Federal Government, and State governments with residential 
real estate appraisal data to help determine whether financial 
institutions, appraisal management companies, appraisers, and other 
valuation professionals are serving the housing market in a manner that 
is efficient and consistent for all mortgage loan applicants, 
borrowers, and communities.
 ``

    (b) 

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

    (1) Application.--The term `application' means the 
 submission of a consumer's financial information for the 
 purposes of obtaining an extension of credit.
 ``

    (2) Dwelling.--The term `dwelling'--
 ``
        (A) means a 1-to-4 unit residential structure, 
 whether or not attached to real property; and
 ``
        (B) includes a detached home, an individual 
 condominium or cooperative unit, and a manufactured 
 home or other factory-built home.
 ``

    (3) Financial institution.--The term `financial 
 institution' means any partnership, company, corporation, 
 association (incorporated or unincorporated), trust, estate, 
 cooperative organization, or other entity that engages in 
 financial activity.
 ``

    (4) Mortgage loan.--The term `mortgage loan' means any 
 extension of credit that is secured by a lien on a dwelling.
 ``
            (c) Agency Appraisal Data Sharing.--
 ``

    (1) Legacy appraisal data.--Not later than 180 days after 
 the date of enactment of this section, the Federal National 
 Mortgage Association, the Federal Home Loan Mortgage 
 Corporation, the Federal Housing Administration, the Department 
 of Agriculture, and the Department of Veterans Affairs shall 
 provide to the Agency--
 ``
        (A) the appraisal data collected in connection 
 with mortgage loan applications and mortgage loans that 
 financial institutions submitted to the Federal 
 National Mortgage Association, the Federal Home Loan 
 Mortgage Corporation, the Federal Housing 
 Administration, the Department of Agriculture, and the 
 Department of Veterans Affairs, as applicable, during 
 the period beginning on January 1, 2017, and ending on 
 the date of enactment of this section; and
 ``
        (B) the corresponding census tract of the subject 
 property, agency loan identifier, the Universal Loan 
 Identifier required by the Home Mortgage Disclosure Act 
 of 1975 (12 U.S.C. 2801 et seq.), the mortgage loan 
 purpose, whether the property is owner occupied, the 
 acquiring agency, and the race and ethnicity of the 
 borrower as required by that Act.
 ``

    (2) Modernized appraisal data.--Not later than 1 year 
 after the date of enactment of this section, and on a quarterly 
 basis thereafter, the Federal National Mortgage Association, 
 the Federal Home Loan Mortgage Corporation, the Federal Housing 
 Administration, the Department of Agriculture, and the 
 Department of Veterans Affairs shall provide to the Agency--
 ``
        (A) the appraisal data collected in connection 
 with mortgage loan applications and mortgage loans that 
 financial institutions submitted in the previous 
 quarter to the Federal National Mortgage Association, 
 the Federal Home Loan Mortgage Corporation, the Federal 
 Housing Administration, the Department of Agriculture, 
 and the Department of Veterans Affairs, as applicable; 
 and
 ``
        (B) the corresponding census tract of the subject 
 property, agency loan identifier, the Universal Loan 
 Identifier required by the Home Mortgage Disclosure Act 
 of 1975 (12 U.S.C. 2801 et seq.), the mortgage loan 
 purpose, whether the property is owner occupied, the 
 acquiring agency, and the race and ethnicity of the 
 borrower as required by that Act.
 ``
            (d) Public Searchable Database.--
 ``

    (1) Legacy appraisal database.--Not later than 2 years 
 after the date of enactment of this section, the Director, in 
 consultation with the Secretary of Housing and Urban 
 Development, the Secretary of Agriculture, and the Secretary of 
 Veterans Affairs, shall make publicly available online a 
 searchable and downloadable appraisal-level public use file of 
 the data shared pursuant to subsection
            (c) (1) .
 ``

    (2) Modernized appraisal database.--Not later than 2 
 years after the date of enactment of this section, and on a 
 quarterly basis thereafter, the Director, in consultation with 
 the Secretary of Housing and Urban Development, the Secretary 
 of Agriculture, and the Secretary of Veterans Affairs, shall 
 make publicly available online a searchable and downloadable 
 appraisal-level public use file of the data shared pursuant to 
 subsection
            (c) (2) .
 ``

    (e) Form and Manner of Valuation Data.--
 ``

    (1) In general.--Any appraisal data required to be 
 disclosed under subsection
            (d) shall be itemized at the 
 appraisal level to clearly and conspicuously disclose--
 ``
        (A) the assignment data, including the assignment 
 reason, property valuation method, client or lender 
 name, appraisal management company name, appraiser 
 company name, appraiser credential level, appraiser 
 identification number, and State, exterior scope of 
 inspection, interior scope of inspection, and the 
 inspection date;
 ``
        (B) the subject property data, including the 
 physical address, zip code, county, State, neighborhood 
 name, attachment type, number of units excluding 
 accessory dwelling units, number of accessory dwelling 
 units, special tax assessments, whether the subject 
 property is a planned unit development, condominium, 
 cooperative, property on Native American lands, subject 
 site owned in common, homeowner responsible for all 
 exterior maintenance of dwelling, or new construction, 
 the property rights appraised, whether all rights are 
 included in the appraisal, and the legal description;
 ``
            (C) the market data, including the market area 
 boundary, search criteria description, number of active 
 listings and their median days on market, lowest list 
 price, median list price, and highest list price, the 
 number of pending sales, the number of sales in the 
 past 24 months and their lowest sale price, median sale 
 price, and highest sale price, whether there is 
 distressed market competition, the price trend source, 
 the demand and supply trend, the marketing time, and 
 the market commentary;
 ``
            (D) the project information, including the 
 project information data source, the monthly amount of 
 mandatory fees, the common amenities and services 
 included, the utilities included, whether the developer 
 or sponsor is in control, any known legal actions, unit 
 special assessments, and unit tax abatements or 
 exemptions;
 ``
        (E) the subject listing information, including 
 the subject listing identification number, the start 
 date, end date, days on market, starting list price, 
 and current or final list price;
 ``
        (F) the sales contract data, including whether 
 there is a sales contract, whether the contract was 
 analyzed, and whether the transaction appears to be an 
 arms length transaction, the contract price, the 
 contract data, transfer terms, any personal property 
 conveyed, any known sales concessions, total sales 
 concessions and whether such concessions are typical 
 for the market, and sales contract analysis;
 ``
        (G) for the subject property and each comparable 
 property relied on for the opinion of value, as 
 applicable--
 ``
            (i) the general data, including the 
 property address, data source, proximity to the 
 subject, list price, listing status, contract 
 price or sale price, sales concessions, 
 contract date, sale data, days on market, 
 whether attached or detached, and property 
 rights appraised;
 ``
            (ii) the site data, including the site 
 size, neighborhood name, topography, site 
 influence or location, site view, and site 
 range;
 ``
            (iii) the dwelling data, including the 
 year built, dwelling style, heating, and 
 cooling;
 ``
            (iv) the energy efficient and green 
 features, including the efficiency rating;
 ``
            (v) the unit data, including the number 
 of bedrooms, number of full baths, number of 
 half baths, finished area above grade, finished 
 area below grade, unfinished area below grade, 
 and below grade exterior access;
 ``
            (vi) the exterior quality and condition 
 ratings data, including the quality rating, 
 exterior walls and trim, roof, and condition 
 rating;
 ``
            (vii) the interior quality and condition 
 ratings data, including the quality rating, 
 condition rating, kitchen, and overall 
 flooring;
 ``
            (viii) the overall quality and condition 
 ratings data, including the quality rating and 
 the condition rating;
 ``
            (ix) the property amenities data, 
 including the outdoor living, water features, 
 and miscellaneous;
 ``
            (x) the vehicle storage data, including 
 type, spaces, and detail; and
 ``
            (xi) for each comparable relied on for 
 the opinion of value, any adjustments related 
 to each of the above data fields;
 ``
        (H) the summary data for the comparable 
 properties relied on for the opinion of value, 
 including the list price, sale price, net adjustment 
 total, price per finished area above grade, adjusted 
 price, and comparable weight;
 ``
            (I) the reconciliation data, including the 
 approaches to value, the contract price, opinion of 
 market value, market value condition, reasonable 
 exposure time, effective date of appraisal, and final 
 value condition statement;
 ``
        (J) the corresponding census tract of the subject 
 property, agency loan identifier, the Universal Loan 
 Identifier required by the Home Mortgage Disclosure Act 
 of 1975 (12 U.S.C. 2801 et seq.), the mortgage loan 
 purpose, whether the property is owner occupied, the 
 acquiring agency, and the race and ethnicity of the 
 borrower as required by that Act, based on the data 
 provided by the Federal National Mortgage Association, 
 the Federal Home Loan Mortgage Corporation, the Federal 
 Housing Administration, the Department of Agriculture, 
 and the Department of Veterans Affairs, as applicable, 
 to the Agency and added to the public appraisal 
 database by the Agency; and
 ``
        (K) such other information as the Agency may 
 require by regulation, after notice and comment.
 ``

    (2) Discretion to modify publicly available data.--The 
 Agency may modify data collected under this section, to be made 
 publicly available, if the Agency determines by regulation, 
 after notice and comment, that the release of the unmodified 
 data creates risks to a mortgage loan applicant or mortgage 
 loan borrower privacy interests that are not justified by the 
 benefits of such release to the public in light of the 
 statutory purposes.
 ``

    (f) Access to the Unmodified Database.--For enforcement and other 
purposes, the Agency shall, upon request, provide access to all 
information collected for the database pursuant to this section, in 
unredacted form, to any Executive agency, as defined in 

section 105 of 
title 5, United States Code, the Board of Governors of the Federal 
Reserve System, the Office of the Comptroller of the Currency, the 
Federal Deposit Insurance Corporation, the National Credit Union 
Administration, the Appraisal Subcommittee of the Federal Financial 
Institutions Examination Council, the Bureau of Consumer Financial 
Protection, and any State attorney general, State appraiser regulator, 
or other State agency with responsibility for laws related to 
appraisals.
 ``

    (g) Rule of Construction.--Nothing in this section shall be 
construed to encourage unsafe or unsound lending, appraisal, or 
valuation practices.
 ``

    (h) Rules and Interpretive Guidelines.--Not later than 1 year 
after the date of enactment of this section, the Agency shall issue a 
final rule after notice and comment and issue such guidance as may be 
necessary to carry out and enforce this section.''.

SEC. 3. RECONSIDERATION OF VALUE.

    (a) In General.--

Section 129E of the Truth In Lending Act (15 
U.S.C. 1639e) is amended--

    (1) by redesignating subsections

    (j) and

    (k) as subsections

    (k) and
            (l) , respectively; and

    (2) by inserting after subsection
            (i) the following:
 ``

    (j) Consumer Right to Reconsideration of Value or Subsequent 
Appraisal.--
 ``

    (1) === Definitions. ===
-In this section:
 ``
        (A) Unacceptable appraisal practice.--The term 
 `unacceptable appraisal practice' means an appraisal 
 report that--
 ``
            (i) uses unsupported or subjective terms 
 to assess or rate the property without 
 providing a foundation for analysis and 
 contextual information;
 ``
            (ii) uses inaccurate or incomplete data 
 about the subject property, the neighborhood, 
 the market area, or any comparable property;
 ``
            (iii) includes references, statements or 
 comparisons about crime rates or crime 
 statistics, whether objective or subjective;
 ``
            (iv) relies in the appraisal analysis on 
 comparable properties that were not personally 
 inspected by the appraiser when required by the 
 appraisal's scope of work;
 ``
            (v) relies in the appraisal analysis on 
 inappropriate comparable properties;
 ``
            (vi) fails to use comparable properties 
 that are more similar, or nearer, to the 
 subject property without adequate explanation;
 ``
            (vii) uses comparable property data 
 provided by any interested party to the 
 transaction without verification by a 
 disinterested party;
 ``
            (viii) uses inappropriate adjustments for 
 differences between the subject property and 
 the comparable properties that do not reflect 
 the market's reaction to such differences; or
 ``
            (ix) fails to make proper adjustments, 
 including time adjustments for differences 
 between the subject property and the comparable 
 properties when necessary.
 ``
        (B) Unsupported.--The term `unsupported' means, 
 with respect to an appraisal report or an appraiser's 
 opinion of value, that the appraisal report or the 
 opinion of value is not supported by relevant evidence 
 and logic.
 ``

    (2) Review.--In connection with a consumer credit 
 transaction secured by a consumer's principal dwelling, a 
 creditor shall have a review and resolution procedure for a 
 consumer-initiated reconsideration of value or subsequent 
 appraisal that complies with the following requirements:
 ``
        (A) The creditor shall complete its own appraisal 
 review before delivering the appraisal to the consumer.
 ``
        (B) The creditor shall have policies and 
 procedures that provide the consumer with a process to 
 submit one request for a reconsideration of value and 
 subsequent appraisal prior to the loan closing or 
 within 60 calendar days of denial of a credit 
 application if the consumer believes the appraisal 
 report may be unsupported, may be deficient due to an 
 unacceptable appraisal practice, or may reflect 
 discrimination.
 ``
            (C) At the time of application and upon delivery 
 of the appraisal report to the consumer, the creditor 
 shall provide a written disclosure to the consumer 
 describing the process for requesting a reconsideration 
 of value or subsequent appraisal, which written 
 disclosure shall include a standardized format for the 
 consumer to submit the request for a reconsideration of 
 value, including--
 ``
            (i) the name of the borrower;
 ``
            (ii) the property address;
 ``
            (iii) the effective date of the 
 appraisal;
 ``
            (iv) the appraiser's name;
 ``
            (v) the date of the request;
 ``
            (vi) a description of why the consumer 
 believes the appraisal report may be 
 unsupported, may be deficient due to an 
 unacceptable appraisal practice, or may reflect 
 discrimination;
 ``
            (vii) any additional information, data, 
 including not more than 5 alternative 
 comparable properties and the related data 
 sources that the consumer would like the 
 appraiser to consider; and
 ``
            (viii) an explanation of why the new 
 information, data, or comparable properties 
 support the reconsideration of value.
 ``
            (D) The creditor shall obtain the necessary 
 information from the consumer if the consumer's request 
 for reconsideration of value or subsequent appraisal is 
 unclear or requires more information.
 ``
        (E) The creditor shall have a standardized format 
 to communicate the reconsideration of value to the 
 appraiser, which format shall include--
 ``
            (i) the name of the borrower;
 ``
            (ii) the property address;
 ``
            (iii) the effective date of the 
 appraisal;
 ``
            (iv) the appraiser's name;
 ``
            (v) the date of the request;
 ``
            (vi) a description of any area of the 
 appraisal report that may be unsupported, may 
 be deficient due to an unacceptable appraisal 
 practice, or may reflect discrimination;
 ``
            (vii) any additional information, data, 
 including not more than 5 alternative 
 comparable properties and the related data 
 sources that the consumer would like the 
 appraiser to consider;
 ``
            (viii) an explanation of why the new 
 information, data, or comparable properties 
 support the reconsideration of value;
 ``
            (ix) a definition of turn-time 
 expectations for the appraiser to communicate 
 the reconsideration of value results back to 
 the creditor;
 ``
            (x) instructions for delivering the 
 reconsideration of value response as part of a 
 revised appraisal report that includes 
 commentary on conclusions regardless of the 
 outcome; and
 ``
            (xi) a reference for appraisers on how to 
 correct minor appraisal issues or non-material 
 errors not related to the reconsideration of 
 value process.
 ``

    (3) Subsequent appraisal and referral.--
 ``
        (A) In general.--If the creditor identifies 
 material deficiencies in the appraisal report that are 
 not corrected or addressed by the appraiser upon 
 request of the creditor, including through a consumer-
 initiated reconsideration of value, or if there is 
 evidence of unsupported or unacceptable appraisal 
 practices, the creditor shall--
 ``
            (i) at the request of the consumer, order 
 a subsequent appraisal at the creditor's own 
 expense; and
 ``
            (ii) forward the appraisal report and the 
 creditor's summary of findings to the 
 appropriate appraisal licensing agency or 
 regulatory board.
 ``
        (B) Discrimination.--If the creditor has reason 
 to believe that an appraisal report reflects 
 discrimination, the creditor shall--
 ``
            (i) order a subsequent appraisal, at the 
 creditor's own expense;
 ``
            (ii) forward the appraisal report and the 
 creditor's summary of findings to the 
 appropriate local, State, or Federal 
 enforcement agency; and
 ``
            (iii) upon a final determination of 
 discrimination by the appropriate local, State, 
 or Federal enforcement agency, receive a 
 reimbursement from the appraiser covering the 
 cost of the subsequent appraisal ordered by the 
 creditor.
 ``
            (C) === Definition. ===
-
 ``
            (i) In general.--Except as provided in 
 clause
            (ii) , in this paragraph, the term 
 `reason to believe' means that the creditor has 
 reviewed the applicable law and available 
 evidence and determined that a potential 
 violation of Federal or state 
 antidiscrimination law exists. The available 
 evidence may include the appraisal report, loan 
 files, written communications, credible 
 observations by persons with direct knowledge, 
 statistical analysis, and the appraiser's 
 response to the request for a reconsideration 
 of value.
 ``
            (ii) Exception.--The term `reason to 
 believe' does not mean that there is a final 
 legal determination of discrimination.
 ``

    (4) Document retention.--The creditor shall retain all 
 documentation and written communications related to the request 
 for reconsideration of value or subsequent appraisal in the 
 loan file during the seven-year period beginning on the date on 
 which the consumer submitted the credit application.
 ``

    (5) Rule of construction.--This subsection is consistent 
 with the exceptions to the appraiser independence requirements 
 found in 

Section 129E
            (c) of the Truth in Lending Act (15 U.S.C. 
 1639e
            (c) ). Nothing in this subsection shall be construed to 
 require a creditor to submit a reconsideration of value to the 
 original appraiser before ordering a subsequent appraisal from 
 a subsequent appraiser.''.

    (b) Rules and Interpretative Guidelines.--

Section 129E

    (g) of the 
Truth in Lending Act (15 U.S.C. 1639e

    (g) ) is amended--

    (1) in paragraph

    (1) , by striking ``paragraph

    (2) , the 
 Board'' and inserting ``paragraphs

    (2) and

    (3) , the Bureau''; 
 and

    (2) by adding at the end the following:
 ``

    (3) Final rule.--Not later than 1 year after the date of 
 enactment of this paragraph, the Federal Housing Finance Agency 
 shall issue a final rule after notice and comment and issue 
 such guidance as may be necessary to carry out and enforce 
 subsection

    (j) .''.
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