The U.S. is short on home appraisers — especially in rural areas — which slows down FHA mortgage closings. This bill would let any state-licensed (not just state-certified) appraiser handle FHA-insured home appraisals, after meeting standard education and competency rules. Federal appraiser-employees would only need to be licensed in one state to work nationwide. It would also create a national registry slot for trainee appraisers (capped at $20 per year), authorize grants to state appraiser agencies for training programs, and add the VA, USDA Rural Housing Service, and HUD to the Appraisal Subcommittee that oversees the industry. Together, the changes are aimed at expanding the appraiser workforce and reducing FHA-related delays for home buyers.
Congressional Summary
Appraisal Industry Improvement ActThis bill revises the eligibility criteria for real estate appraisers who are authorized to perform appraisals for federally related mortgage loans.As background, the Federal Financial Institutions Examination Council’s Appraisal Subcommittee oversees state licensing and certification of appraisers and maintains a registry of appraisers who are eligible to perform federally related appraisals—those tied to mortgages involving federally insured banks, federally backed programs (e.g., programs administered by the Federal Housing Administration), or government sponsored enterprises (e.g., Fannie Mae).The billallows federal employees who are state certified or licensed as an appraiser to perform federally related appraisals in states and territories other than the state or territory in which they are certified or licensed,requires appraisers to meet competency requirements established in the Uniform Standards of Professional Appraisal Practice, andprohibits an appraiser who is only certified by a nationally recognized professional appraisal organization from performing federally related appraisals. The bill also establishes requirements for qualifying education for these appraisers.The bill expands the national registry of state certified and licensed appraisers to include credentialed trainees. The bill also allows state certified appraisers to use the assistance of a credentialed trainee or an unlicensed trainee.Finally, under the bill, the subcommittee (1) must make grants to state certifying and licensing agencies for the purpose of addressing appraiser workforce needs, and (2) may decrease certain fees for appraisal management companies if the subcommittee determines that the fees result in adverse consequences or are not appropriately tailored.
Details
- Congress
- 119th
- Chamber
- Senate
- Status
- summarized
- Action
- Introduced in Senate
- Action Date
- 2025-05-07
- Date Added
- 2026-05-06
- Source
- Congress.gov →
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