HR2413-119

What This Bill Does

The GREEN Appraisals Act changes appraisal and underwriting treatment for federally connected residential mortgage loans. Covered agencies include FHA, FHFA for Fannie Mae and Freddie Mac, Ginnie Mae, USDA Rural Housing Service, and VA. Creditors must give borrowers a written disclosure explaining that they may provide an energy report, may request one, and that the report may raise, lower, or not affect appraised value and loan approval. Starting March 1, 2026, when an energy report is available and the borrower consents, the creditor must give the report to the appraiser at assignment, underwriting systems must accommodate appraisals that consider it, and qualified appraisers must consider energy efficiency characteristics, renewable energy features, estimated savings, consumption relative to comparable homes, market relevance, and covered-agency guidance. Covered agencies must jointly issue guidance after consulting an advisory committee of housing advocates, energy efficiency and renewable energy organizations, energy raters, home builders, architects, mortgage creditors, consumer advocates, appraisers, and other groups.

Who Benefits and How

Homeowners with energy efficient features benefit because appraisers must consider energy reports when valuing covered-loan properties. Prospective mortgage borrowers benefit from disclosures about requesting and providing energy reports during the appraisal process. Energy raters benefit because HERS, Home Energy Score, and approved report methods become part of the federal mortgage appraisal workflow. Renewable energy installers benefit if solar or other renewable features are more consistently considered in appraised value. Qualified appraisers benefit from guidance and continuing education standards for considering energy reports.

Who Bears the Burden and How

Mortgage creditors must provide disclosures, share energy reports with appraisers after borrower consent, and update underwriting systems. Covered agency staff at FHA, FHFA, Ginnie Mae, Rural Housing Service, and VA must issue guidance and enforce covered-loan requirements. Qualified appraisers must complete at least seven hours of approved continuing education and consider energy report information in covered appraisals. Mortgage underwriting system vendors must accommodate appraisals that take energy reports into consideration within the two-year timeline.

Key Provisions

• Requires covered-loan creditors to disclose borrower rights to provide or request an energy report.
• Requires creditors to provide available energy reports to appraisers with borrower consent starting March 1, 2026.
• Requires qualified appraisers to consider energy efficiency, renewable features, energy savings, and comparable-home consumption.
• Creates joint covered-agency guidance and a stakeholder advisory committee for implementation.
• Requires origination and underwriting systems to accommodate appraisals that consider energy reports within two years.