Appraisal Industry Improvement Act
Summary
The Appraisal Industry Improvement Act aims to amend the National Housing Act, focusing on appraisal standards for mortgages insured by the FHA. It seeks to authorize state-licensed appraisers to conduct appraisals for FHA-insured mortgages while ensuring compliance with education and competency requirements. The bill also addresses annual registry fees for appraisal management companies and includes state-credentialed trainees in the national registry.
Expected Effects
The act will likely broaden the pool of eligible appraisers for FHA-insured mortgages, potentially streamlining the appraisal process. It also aims to enhance the quality and consistency of appraisals through improved education and oversight. Furthermore, the act introduces grants for workforce and training to address appraiser industry workforce needs.
Potential Benefits
- Expands the pool of qualified appraisers for FHA-insured mortgages.
- Enhances appraiser competency through verifiable education requirements.
- Provides grants for workforce development and training in the appraisal industry.
- Includes state-credentialed trainees in the national registry, supporting their professional development.
- Allows the Appraisal Subcommittee to adjust fees to better carry out its functions.
Potential Disadvantages
- Potential for increased regulatory burden on appraisers due to new education and compliance requirements.
- Possible delays in implementation due to the required issuance of mortgagee letters and guidance.
- Adjustment of fees by the Appraisal Subcommittee could lead to increased costs for appraisal management companies.
- The act does not explicitly address consumer protection concerns related to appraisal quality.
- There might be inconsistencies in the application of standards across different states.
Constitutional Alignment
The Appraisal Industry Improvement Act primarily relates to economic regulation and does not directly infringe upon any specific constitutional rights. Congress has the power to regulate commerce under Article I, Section 8, Clause 3 (the Commerce Clause), which allows it to legislate on matters related to housing and finance. The Act's provisions for appraisal standards and oversight fall within this purview.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).