S.1635 - Appraisal Industry Improvement Act (119th Congress)
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, ensure compliance with appraiser education and competency requirements, and address appraisal management company fees. The bill also includes provisions for state credentialed trainee appraisers and grants for workforce training.
Expected Effects
The act is likely to standardize and improve the appraisal process for FHA-insured mortgages. This could lead to more accurate property valuations and reduced risk for lenders and borrowers. Additionally, it may expand opportunities for state-licensed and trainee appraisers.
Potential Benefits
- Increased access to FHA-insured mortgages due to a potentially larger pool of qualified appraisers.
- Enhanced competency and education standards for appraisers, leading to more reliable property valuations.
- Reduced fees for appraisal management companies, potentially lowering costs for consumers.
- Opportunities for state credentialed trainee appraisers to gain experience and enter the profession.
- Grants for workforce training, supporting the development of a skilled appraisal workforce.
Potential Disadvantages
- Potential for increased regulatory burden on appraisers due to new education and compliance requirements.
- Possible delays in the appraisal process during the initial implementation phase as appraisers adapt to the new standards.
- Could increase costs for appraisers to meet new requirements, which may be passed on to consumers.
- The act does not address broader issues within the housing market, such as affordability or access to credit.
- Potential for unintended consequences related to the implementation of new fee structures for appraisal management companies.
Constitutional Alignment
The Appraisal Industry Improvement Act primarily addresses economic regulations related to housing and financial institutions. Congress has broad authority to regulate interstate commerce under Article I, Section 8, Clause 3 (the Commerce Clause) of the U.S. Constitution. The act's provisions regarding appraisal standards and fees fall within this scope of regulatory power.
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).