VA Appraisal Modernization Act

A shortage of VA-certified appraisers has slowed down loan approvals, sometimes causing veterans to lose out on homes to buyers using faster financing options. This issue is more noticeable in rural areas such as Northern and inland California, where fewer appraisers are available, and travel distances can add even more time to the process. If enacted, this bill would address these delays through several measures. The legislation would amend current law to adjust all VA home appraisal fees to keep pace with inflation in the industry, require the Secretary of Veterans Affairs to increase appraisal fees in areas that have an insufficient supply of appraisers, and subject all appraisals made in high-demand counties and remote areas to mileage reimbursements to reduce appraisers' personal costs. Fees for appraisals in high-demand counties will be raised to no less than 125 percent of the newly established appraisal fees that the VA would publish and update regularly. If passed, the VA has 180 days to conduct a study on getting contracts for appraisers in areas with high demand and on restructuring the appraisal process to resemble the one used by the Federal Housing Administration for its loans.