Portal for Appraisal Licensing Act of 2025
Summary
The Portal for Appraisal Licensing Act of 2025 aims to amend the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. It seeks to establish a centralized, cloud-based portal for appraiser credentialing and appraisal management company (AMC) registration information. This portal would streamline the application and renewal processes for appraisers and AMCs.
Expected Effects
The Act would create a national database and processing center for appraiser licensing and AMC registration. This would standardize and potentially expedite the credentialing process. It also mandates background checks and allows for fee collection to sustain the portal.
Potential Benefits
- Streamlined application and renewal processes for appraisers and AMCs.
- Improved connectivity between state agencies and the Appraisal Subcommittee.
- Enhanced background check procedures for appraisers.
- Potential for reduced administrative burden on state agencies.
- Standardized data collection and reporting.
Potential Disadvantages
- Potential for increased costs through user fees.
- Possible challenges in integrating existing state systems with the new portal.
- Concerns about data security and privacy within the centralized system.
- Risk of federal overreach into state licensing authority.
- Potential for delays during the initial implementation phase.
Constitutional Alignment
The Act appears to align with the Commerce Clause (Article I, Section 8) by regulating activities that affect interstate commerce, specifically the appraisal industry. The background check provisions may raise Fourth Amendment concerns regarding unreasonable searches, but the bill addresses this by requiring authorization from the individuals being checked. The Tenth Amendment, reserving powers not delegated to the federal government to the states, is addressed by explicitly stating that states retain the ability to act independently on license applications.
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).