HR6025-119

What This Bill Does

The Appraisal Industry Improvement Act changes several FHA and appraisal-regulatory statutes. For FHA-insured mortgages, appraisers must be State certified or licensed, meet the USPAP competency rule before accepting assignments, and demonstrate education in FHA appraisal requirements through FHA-provided or approved third-party coursework. Federal employees whose primary duty is appraisal-related work can use one State or territory license to perform FHA appraisal work nationally. HUD must issue a mortgagee letter or guidance within 240 days and make the requirements effective no later than 180 days after that guidance. The bill lets the Appraisal Subcommittee adjust annual registry fees for appraisal management companies with Council approval. It also adds State credentialed trainee appraisers to the national registry framework, requires States with trainee programs to report credentials and discipline, lets certified appraisers use trainee assistance while retaining final liability, and authorizes grants to State appraiser agencies, nonprofits, and higher-education institutions for workforce recruitment, scholarships, and career pipeline development.

Who Benefits and How

State-licensed real estate appraisers benefit because the bill clarifies the FHA approval pathway and recognizes licensing, competency, and FHA education as the key qualifications. Federal employee appraisers benefit because one State or territory credential can support FHA appraisal work across States and territories. Aspiring and trainee appraisers benefit because State credentialed trainee appraisers are recognized in registry reporting and can assist certified appraisers. State appraiser licensing agencies, nonprofits, and colleges benefit because the Appraisal Subcommittee can make grants for scholarships, recruitment, retention, and career pipeline work. FHA homebuyers and lenders benefit if clearer appraiser qualifications and workforce grants reduce appraisal bottlenecks on FHA-insured mortgages.

Who Bears the Burden and How

HUD and FHA staff must issue implementing guidance, approve education pathways, and enforce the new FHA appraiser qualification rules. Appraisers who were not already FHA-approved before the guidance takes effect must complete FHA-specific education in addition to licensing and competency requirements. Appraisal management companies can face higher annual registry fees if the Appraisal Subcommittee adjusts fees to fund its functions. State appraiser licensing agencies with trainee programs must report trainee credentials, renewals, sanctions, and disciplinary actions to the national registry. Certified appraisers supervising trainees remain liable for final appraisal work.

Key Provisions

• Requires FHA appraisers to hold State certification or licensing, satisfy USPAP competency, and complete FHA-specific education.
• Allows federal employee appraisers with appraisal-related duties to use one State or territory credential for nationwide FHA appraisal work.
• Requires HUD to issue FHA appraiser guidance within 240 days and phase in the new requirements.
• Authorizes Appraisal Subcommittee fee adjustments for appraisal management companies with Council approval.
• Adds State credentialed trainee appraisers to registry reporting and allows certified appraisers to use trainee assistance while retaining final liability.
• Authorizes grants for appraisal workforce education, scholarships, recruitment, and career pipeline development.