Appraisal Modernization Act

(a) Reconsideration of value (1) Federally backed mortgage loan defined In this subsection, the term Federally backed mortgage loan has the meaning given the term in section 4022 of the CARES Act (15 U.S.C. 9056). (2) Requirement The Secretary of Agriculture, the Secretary of Veterans Affairs, the Commissioner of the Federal Housing Administration, and the Director of the Federal Housing Finance Agency shall each implement and maintain requirements that creditors of a federally backed mortgage loan have a review and resolution procedure for a consumer-initiated reconsideration of value or subsequent appraisal in connection with a consumer credit transaction secured by a consumer’s principal dwelling. (b) Public appraisal database (1) Covered agencies defined In this subsection, the term covered agencies means— (A) the Federal Housing Finance Agency, on behalf of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation; (B) the Department of Housing and Urban Development, including the Federal Housing Administration; (C) the Department of Agriculture; and (D) the Department of Veterans Affairs. (2) Feasibility report No later than 240 days after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress a public report assessing the feasibility of creating a publicly available appraisal database that consists of a searchable and downloadable appraisal-level public use file that consolidates appraisal data held or aggregated by covered agencies, including— (A) the costs and benefits associated with establishing and maintaining the public database; (B) the benefits and risks associated with the Federal Housing Finance Agency or the Bureau of Consumer Financial Protection being responsible for the public database and whether there is another Federal agency best suited for implementing and administering such database; (C) any safety and soundness, antitrust, or consumer privacy-related risks associated with making certain appraisal data factors publicly available, including whether– (i) there are any existing legal requirements, including under the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et seq.) and section 552 of title 5, United States Code (commonly known as the Freedom of Information Act), or additional actions Federal agencies could take to mitigate such risks, such as modifying or aggregating data or eliminating personally identifiable information; and (ii) there are any data factors that, if made public, may violate conduct, ethics, or other professional standards as they relate to appraisals and appraisal or valuation professionals; (D) the feasibility of consolidating or matching appraisal data held by covered agencies with corresponding data that is required and made public under the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et seq.); (E) whether the publication of any appraisal data factors may pose unfair business advantages within the valuation industry; (F) the feasibility of including all valuation data held by covered agencies, including data produced by automated valuation models; (G) the feasibility and benefits of making the full appraisal dataset, including any modified fields, available to— (i) Federal agencies, including for purposes related to enforcement and supervision responsibilities; (ii) relevant State licensing, supervision, and enforcement agencies and State attorneys general; (iii) approved researchers, including academics and nonprofit organizations that, in connection with their mission, work to ensure the fairness and consistency of home valuations, including appraisals; and (iv) any other entities identified by the Comptroller General as having a compelling use for disaggregated data; (H) what appraisal data is already available in the public domain; and (I) the feasibility of incorporating legacy data held by covered agencies during the period beginning on January 1, 2017 and ending on the date of enactment of this Act, and whether there are specific data points not easily consolidated or matched, as described in subparagraph (D), with more recent data. (3) Purpose The database described in paragraph (2) shall be used to provide the public, the Federal Government, and State governments with residential real estate appraisal data to help determine whether financial institutions, appraisal management companies, appraisers, valuation technologies, such as automated valuation models, and other valuation professionals are effectively serving the entire housing market. (4) Consultation As part of the information used in the report required under paragraph (2), the Comptroller General of the United States shall conduct interviews with— (A) relevant Federal agencies; (B) relevant State licensing, supervision, and enforcement agencies and State attorneys general; (C) appraisers and other home valuation industry professionals; (D) mortgage lending institutions; (E) fair housing and fair lending experts; and (F) any other relevant stakeholders as determined by the Comptroller General. (5) Hearing Upon the completion of the report under paragraph (2), the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives shall each hold a hearing on the findings of the report and the feasibility of establishing a public appraisal-level appraisal database.

(a) Reconsideration of value (1) Federally backed mortgage loan defined In this subsection, the term federally backed mortgage loan has the meaning given the term in section 4022 of the CARES Act (15 U.S.C. 9056). (2) Requirement The Secretary of Agriculture, the Secretary of Veterans Affairs, the Commissioner of the Federal Housing Administration, and the Director of the Federal Housing Finance Agency shall each implement and maintain requirements that creditors of a federally backed mortgage loan have a review and resolution procedure for a consumer-initiated reconsideration of value or subsequent appraisal in connection with a consumer credit transaction secured by a consumer’s principal dwelling. (b) Public appraisal database (1) Covered agencies defined In this subsection, the term covered agencies means— (A) the Federal Housing Finance Agency, on behalf of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation; (B) the Department of Housing and Urban Development, including the Federal Housing Administration; (C) the Department of Agriculture; and (D) the Department of Veterans Affairs. (2) Feasibility report Not later than 240 days after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress a public report assessing the feasibility of creating a publicly available appraisal database that consists of a searchable and downloadable appraisal-level public use file that consolidates appraisal data held or aggregated by covered agencies, including— (A) the costs and benefits associated with establishing and maintaining the public database; (B) the benefits and risks associated with the Federal Housing Finance Agency or the Bureau of Consumer Financial Protection being responsible for the public database and whether there is another Federal agency best suited for implementing and administering such database; (C) any safety and soundness, antitrust, or consumer privacy-related risks associated with making certain appraisal data factors publicly available, including whether— (i) there are any existing legal requirements, including under the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et seq.) and section 552 of title 5, United States Code (commonly known as the Freedom of Information Act), or additional actions Federal agencies could take to mitigate such risks, such as modifying or aggregating data or eliminating personally identifiable information; and (ii) there are any data factors that, if made public, may violate conduct, ethics, or other professional standards as they relate to appraisals and appraisal or valuation professionals; (D) the feasibility of consolidating or matching appraisal data held by covered agencies with corresponding data that are required and made public under the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et seq.); (E) whether the publication of any appraisal data factors may pose unfair business advantages within the valuation industry; (F) the feasibility of including all valuation data held by covered agencies, including data produced by automated valuation models; (G) the feasibility and benefits of making the full appraisal dataset, including any modified fields, available to— (i) Federal agencies, including for purposes related to enforcement and supervision responsibilities; (ii) relevant State licensing, supervision, and enforcement agencies and State attorneys general; (iii) approved researchers, including academics and nonprofit organizations that, in connection with their mission, work to ensure the fairness and consistency of home valuations, including appraisals; and (iv) any other entities identified by the Comptroller General as having a compelling use for disaggregated data; (H) what appraisal data are already available in the public domain; and (I) the feasibility of incorporating legacy data held by covered agencies during the period beginning on January 1, 2017, and ending on the date of enactment of this Act, and whether there are specific data points not easily consolidated or matched, as described in subparagraph (D), with more recent data. (3) Purpose The database described in paragraph (2) shall be used to provide the public, the Federal Government, and State governments with residential real estate appraisal data to help determine whether financial institutions, appraisal management companies, appraisers, valuation technologies, such as automated valuation models, and other valuation professionals are effectively serving the entire housing market. (4) Consultation As part of the information used in the report required under paragraph (2), the Comptroller General of the United States shall conduct interviews with— (A) relevant Federal agencies; (B) relevant State licensing, supervision, and enforcement agencies and State attorneys general; (C) appraisers and other home valuation industry professionals; (D) mortgage lending institutions; (E) fair housing and fair lending experts; and (F) any other relevant stakeholders as determined by the Comptroller General. (5) Hearing Upon the completion of the report under paragraph (2), the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives shall each hold a hearing on the findings of the report and the feasibility of establishing a public appraisal-level appraisal database.