H.R. 5975

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5975 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 5975

To amend the Truth in Lending Act 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; to study the 
feasibility of creating a national public appraisal database.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

November 7, 2025

Ms. Pressley introduced the following bill; which was referred to the 
Committee on Financial Services, and in addition to the Committee on 
Rules, 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 amend the Truth in Lending Act 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; to study the 
feasibility of creating a national public appraisal database.

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. RECONSIDERATION OF VALUE.

(1) In general.--Section 129E of the Truth In Lending Act 
(15 U.S.C. 1639e) is amended--
(A) by redesignating subsections (j) and (k) as 
subsections (k) and (l), respectively; and
(B) 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 1 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 7-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 subsection (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.''.
(2) Rules and interpretative guidelines.--Section 129E(g) 
of the Truth in Lending Act (15 U.S.C. 1639e(g)) is amended--
(A) in paragraph (1), by striking ``paragraph (2), 
the Board'' and inserting ``paragraphs (2) and (3), the 
Bureau''; and
(B) 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).''.

SEC. 3. PUBLIC APPRAISAL DATABASE.

(1) Covered agencies defined.--The term ``covered 
agencies'' means--
(A) the Federal Housing Finance Agency, on behalf 
of the Federal National Mortgage Association and the 
Federal Home Loan Mortgage Corporation;
(B) the Department of Housing and Urban 
Development, including the Federal Housing 
Administration;
(C) the Department of Agriculture; and
(D) the Department of Veterans Affairs.
(2) Feasibility report.--No later than 240 days after the 
date of enactment of this Act, the Comptroller General of the 
United States shall issue a public report to Congress assessing 
the feasibility of creating a publicly available appraisal 
database that consists of a searchable and downloadable 
appraisal level public use file that consolidates appraisal 
data held or aggregated by covered agencies, which shall 
include--
(A) the costs and benefits associated with 
establishing and maintaining the public database;
(B) the benefits and risks associated with either 
the Federal Housing Finance Agency or the Bureau of 
Consumer Financial Protection being responsible for the 
public database and whether there is another Federal 
agency best suited for implementing and administering 
such database;
(C) any safety and soundness, antitrust, or 
consumer privacy-related risks associated with making 
certain appraisal data factors publicly available, 
including whether--
(i) there are any existing legal 
requirements, including under the Home Mortgage 
Disclosure Act of 1974 (12 U.S.C. 2801 et seq.) 
and section 552 of title 5, United States Code 
(commonly known as the ``Freedom of Information 
Act''), or additional actions Federal agencies 
could take to mitigate such risks, such as 
modifying or aggregating data, or eliminating 
personally identifiable information; and
(ii) there are any data factors that, if 
made public, may violate conduct, ethics, or 
other professional standards as they relate to 
appraisals and appraisal or valuation 
professionals;
(D) the feasibility of consolidating or matching 
appraisal data held by covered agencies with 
corresponding data that is required and made public 
under the Home Mortgage Disclosure Act of 1974 (12 
U.S.C. 2801 et seq.);
(E) whether the publication of any appraisal data 
factors may pose unfair business advantages within the 
valuation industry;
(F) the feasibility of including all valuation data 
held by covered agencies, including data produced by 
automated valuation models;
(G) the feasibility and benefits of making the full 
appraisal dataset, including any modified fields, 
available to--
(i) Federal agencies, including for 
purposes related to enforcement and supervision 
responsibilities;
(ii) relevant State licensing, supervision, 
and enforcement agencies and State attorneys 
general;
(iii) approved researchers, including 
academics and nonprofit organizations that, in 
connection with their mission, work to ensure 
the fairness and consistency of home 
valuations, including appraisals; and
(iv) any other entities identified by the 
Comptroller General as having a compelling use 
for disaggregated data;
(H) what appraisal data is already available in the 
public domain; and
(I) the feasibility of incorporating legacy data 
held by covered agencies during the period beginning on 
January 1, 2017 and ending on the date of enactment of 
this Act, and whether there are specific data points 
not easily consolidated or matched, as described in 
subparagraph (D), with more recent data.
(3) Purpose.--The database described in paragraph (2) shall 
be used 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, valuation technologies, such 
as automated valuation models, 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.
(4) Consultation.--As part of the information used in the 
report required under paragraph (2), the Comptroller General of 
the United States shall conduct interviews with--
(A) relevant Federal agencies;
(B) relevant State licensing, supervision, and 
enforcement agencies and State attorneys general;
(C) appraisers and other home valuation industry 
professionals;
(D) mortgage lending institutions;
(E) fair housing and fair lending experts; and
(F) any other relevant stakeholders as determined 
by the Comptroller General.
(5) Hearing.--Upon the completion of the report under 
paragraph (2), the Committee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee on Financial Services 
of the House of Representatives shall each hold a hearing on 
the findings of the report and the feasibility of establishing 
a public appraisal-level appraisal database.
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