Appraisal Modernization Act

The Appraisal Modernization Act, introduced in the Senate, would overhaul how residential real estate appraisal data is collected, shared, and used, and it would give borrowers new protections around appraisal value. First, it would insert a new Public Appraisal Database into the Federal Housing Enterprises Safety and Soundness Act of 1992. This database would require legacy (data already collected) and modernized (data going forward) appraisal information to be collected and publicly accessible in searchable formats. The data would cover extensive details about appraisal assignments, the subject property, market data, listings, comparable properties, and adjustments, and would also include borrower race/ethnicity information as currently required by applicable disclosure laws. The aim is to promote transparency, improve consistency across the housing market, and support public and government oversight of how financial institutions, appraisal management companies (AMCs), appraisers, and other valuation professionals serve mortgage lending. Separately, the bill expands consumer protections by introducing a consumer right to reconsideration of value or a subsequent appraisal in a mortgage transaction. If a borrower believes an appraisal is flawed or discriminatory, lenders would be required to implement a formal review process, provide standardized disclosure and submission formats, and potentially order a subsequent appraisal at the lender’s expense if material deficiencies persist. The lender would also be required to escalate concerns about discrimination to appropriate authorities. These provisions are paired with timing, recordkeeping, and enforcement rules, and they would be supplemented by required agency rulemaking to implement and enforce the changes. Overall, the Act seeks to modernize appraisal data use and strengthen borrower protections, while also imposing new reporting, data-sharing, and procedural requirements on lenders, appraisers, and regulators.