H.R. 6025

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6025 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 6025

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 HOUSE OF REPRESENTATIVES

November 12, 2025

Mr. Donalds (for himself, Mr. Sherman, and Ms. Bynum) introduced the 
following bill; which was referred to the Committee on Financial 
Services

_______________________________________________________________________

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. APPRAISAL 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 has as their primary duty conducting appraisal-
related activities and who chooses to become a State-licensed 
or certified real estate appraiser need only to be licensed or 
certified in 1 State or territory to perform appraisals on 
mortgages insured by the Federal Housing Administration in all 
States and territories;
``(B) meet the requirements under the competency rule set 
forth 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 provided by--
``(i) the Federal Housing Administration; or
``(ii) a third party, so long as the course is 
approved by the Secretary or a State appraiser 
certifying or 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 
subparagraph (A), shall not apply with respect to any certified 
appraiser approved by the Federal Housing Administration to 
conduct appraisals on property securing a mortgage to be 
insured by the Federal Housing Administration on or before the 
effective date under paragraph (3)(C).
(b) Compliance With Verifiable Education and Competency 
Requirements.--On and after the effective date under paragraph (3)(C), 
no appraiser may conduct an appraisal on a property securing a mortgage 
to be insured by the Federal Housing Administration 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 paragraph (1); and
(2) if the appraiser was not approved by the Federal 
Housing Administration to conduct appraisals on mortgages 
insured by the Federal Housing Administration before the date 
on which the mortgagee letter or guidance take effect under 
paragraph (3)(C), 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 guidance that shall--
(1) implement the amendments made by paragraph (1);
(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 paragraph (1), for approval to 
conduct appraisals on property secured by a mortgage to be 
insured by the Federal Housing Administration, which shall 
include--
(A) providing that, before the effective date of 
the mortgagee letter or guidance, compliance with the 
requirements under subparagraphs (A), (B), and (C) of 
such section 202(g)(5), as amended by paragraph (1), 
shall be considered to fulfill the requirements under 
such subparagraphs; and
(B) providing a method for appraisers to 
demonstrate such prior compliance; 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 guidance.

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: ``Subject to the approval of the Council, the Appraisal 
Subcommittee may adjust fees established under clause (i) or (ii) to 
carry out its functions under this Act.''.

SEC. 4. STATE CREDENTIALED TRAINEES.

(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''; and
(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, including license, credential, and 
certification revocations, on a timely basis to the national 
registry of the Appraisal Subcommittee;''.
(2) Rule of construction.--Nothing in the amendments made 
by subparagraph (A) 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, except that a State certified appraiser 
assisted by a trainee shall be liable for final work.''.
(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)(B), 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, nonprofit organizations, and institutions 
of higher education to support the carrying out of education 
and training activities or other activities related to 
addressing appraiser industry workforce needs, including 
recruiting and retaining workforce talent, such as through 
scholarship assistance and career pipeline development.''.

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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