Appraisal Modernization Act

The Appraisal Modernization Act would amend lending laws to establish consumer protections related to home appraisals. If enacted, the bill would give borrowers the right to request reconsideration of a property appraisal or obtain a subsequent appraisal if they believe the original appraisal contains errors or uses flawed practices. The bill defines unacceptable appraisal practices to include using unsupported terms, inaccurate data, references to crime statistics, or comparable properties that were not personally inspected by the appraiser. Lenders would be required to document and retain all communications related to reconsideration requests for seven years.

The bill would also direct federal agencies to study the feasibility of creating a publicly searchable database of appraisal information from mortgage loans. This database would consolidate appraisal data held by agencies like Fannie Mae, Freddie Mac, and the Federal Housing Administration. The stated goal is to make the appraisal process more efficient and consistent across all mortgage borrowers and communities. The bill is currently in committee and has not yet been voted on by the full House.