HR-5975 : Still Just a Bill

The Appraisal Modernization Act, also known as H.R. 5975, aims to amend the Truth in Lending Act to ensure fairness and consistency in the housing market for all mortgage loan applicants, borrowers, and communities. The bill focuses on improving the appraisal process and studying the feasibility of creating a national public appraisal database. Key provisions include:

• Reconsideration of Value: Mandates that creditors establish a review process for consumers to request a reconsideration of value or a subsequent appraisal if they believe the initial appraisal is unsupported, deficient due to unacceptable practices, or reflects discrimination.
• Subsequent Appraisal and Referral: Requires creditors to order a new appraisal at their own expense if material deficiencies are found in the original report and are not addressed by the appraiser. The creditor must also forward the appraisal report and a summary of findings to the appropriate appraisal licensing agency or regulatory board if there is suspicion of discrimination.
• Public Appraisal Database Feasibility Study: Directs the Comptroller General of the United States to assess the feasibility of creating a publicly available appraisal database. This database would consolidate appraisal data from various federal agencies to help determine if financial institutions, appraisal management companies, and appraisers are serving the housing market efficiently and consistently.