79–006 

115TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 115–528 

HOUSING OPPORTUNITIES MADE EASIER ACT 

JANUARY 29, 2018.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. HENSARLING, from the Committee on Financial Services, 

submitted the following 

R E P O R T 

[To accompany H.R. 2255] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Financial Services, to whom was referred the 

bill (H.R. 2255) to clarify that nonprofit organizations may accept 

donated mortgage appraisals, and for other purposes, having considered the same, report favorably thereon without amendment and 

recommend that the bill do pass. 

PURPOSE AND SUMMARY

Introduced by Representative Trott, H.R. 2255, the ‘‘Housing Opportunities Made Easier Act’’ amends the Truth in Lending Act 

(TILA) to deem mortgage appraisal services donated by a fee appraiser to an organization that is eligible to receive tax-deductible 

charitable contributions to be customary and reasonable. 

BACKGROUND AND NEED FOR LEGISLATION

Title XIV of the Dodd-Frank Wall Street Reform and Consumer 

Protection Act (Dodd Frank Act)(P.L. 111–203), also known as the 

Mortgage Reform and Anti-Predatory Lending Act, made a number 

of changes to the regulation of property appraisals. The DoddFrank Act set new federal standards for the independence of appraisers, mandated independence for appraisers, and created rules 

for customary and reasonable fees. 

Section 1472(i) of the Dodd-Frank Act directed the Bureau of 

Consumer Financial Protection (CFPB) to establish reasonable and 

customary fees for fee appraisers, professionals who furnish appraisal services for a fee. The definition of fee appraiser excludes 

employees of banks and appraisal management companies. Under 

2 

1Term ‘‘agencies’’ collectively refers to the Office of Comptroller of the Currency (OCC), the 

Federal Reserve Board, the Federal Deposit Insurance Corporation (FDIC), the National Credit 

Union Association (NCUA), the Consumer Financial Protection Bureau (CFPB), and the Federal 

Housing Finance Agency (FHFA). 2https://www.federalregister.gov/documents/2013/01/31/2013–01384/disclosure-and-delivery-requirements-for-copies-of-appraisals-and-other-written-valuations-under-the 3https://www.habitat.org/sites/default/files/annual-report-FY2017-web.pdf. 

this provision, fee appraisers are to receive payment that is ‘‘customary and reasonable’’ for appraisal services performed in the 

market area of the property being appraised. As the prudential financial regulators seek to formulate these fees, Title XIV of DoddFrank requires them to consider objective third-party information, 

such as government agency fee schedules, academic studies, and 

independent private sector surveys. As the prudential regulators 

collect the necessary information to formulate customary and reasonable fees, Section 1472(i) also directs relevant federal agencies 1

to exclude fees that are connected to assignments ordered by appraisal management companies. The CFPB promulgated rules to 

implement the statute, which went into effect in 2014.2

However, the CFPB’s use of the terms ‘‘customary’’ and ‘‘reasonable’’ in its rule created an issue for non-profit housing organizations, such as Habitat for Humanity, who enlist individuals and 

groups in local communities all over the world to help build or improve dwellings for low-income and impoverished families. In many 

cases these organizations require volunteer labor and monetary donations to complete projects, help build homes and obtain affordable mortgages. In 2017 alone Habitat for Humanity assisted more 

than 30 thousand low-income Americans construct or rehabilitate 

their dwellings. This figure could have been substantially higher if 

organizations such as Habitat for Humanity were permitted to receive appraisals at no cost.3

As a result, the CFPB’s definition for the cost of appraisals has 

hindered certain non-profit housing organizations’ ability to provide 

cost effective residences for the needy because the CFPB could interpret appraisal donations as a violation of the law. With appraisal costs reaching up to more than $1000 each, Habitat for Humanity has said that the ‘‘provisions in [the Dodd-Frank Act], including appraisal independence regulations, created unintended 

consequences for Habitat for Humanity and other nonprofit organizations providing responsible homeownership opportunities to families without access to bank mortgages.’’ 

HEARINGS

The Committee on Financial Services held a hearing examining 

matters relating to H.R. 2255 on April 26, 2017 and April 28, 2017. 

COMMITTEE CONSIDERATION

The Committee on Financial Services met in open session on 

January 17, 2018 and January 18, 2018 and ordered H.R. 2255 to 

be reported favorably by a recorded vote of 55 yeas to 0 nays 

(Record vote no. FC–139), a quorum being present. 

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COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. The sole recorded 

vote was on a motion by Chairman Hensarling to report the bill favorably to the House without amendment. The motion was agreed 

to by a recorded vote of 55 yeas to 0 nays (Record vote no. FC–139), 

a quorum being present. 

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Insert offset folio 4 here HR528.001

Representative 

Mr. Hensarling········-------

Mr. McHenry·----·------------

Mr. King---------------------

Mr. Royce (CA) ---------------

Mr. Lucas--------------------

Mr. Pearce-------------------

Mr. Posey--------------------

Mr. Luetkemeyer·-------------

Mr. Huizenga ----------------

Mr. Duffy·--------------------

Mr. St1vers -------------------

Mr. Hultgren -----------------

Mr. Ross---------------------

Mr. Pittenger------·--·-------

Mrs. Wagner 

Mr. Barr ..•.•••••••..•.••••••. 

Mr. Rothfus -----·------------

Mr. Messer-------------------

Mr. Tipton·-------------------

Mr. Williams -----------------

Mr. Poliquin------------------

Mrs. Love--------------------

Mr.Hill ----------------------

Mr. Emmer-------------------

Mr. Zeldm ·-------------------

Mr. Trott---------------------

Mr. Loudermilk--------------_ 

Mr. Mooney (WV) _____________ _ 

Mr. MacArthur----------------

Mr. Davidson-----------------

Mr. Budd -------------------- Mr. Kustoft (TNL ___________ _ 

Ms. Tenney-------------------

Mr. Hollingsworth ____________ _ 

Yea 

Record vote no. FC-13 9 

Nay Present Representative 

Ms. Maxine Waters (CA) ... __ __ 

Mrs. Carolyn B. Maloney (NY) __ 

Ms. Velazquez·---------------

Mr. Sherman -----------------

Mr. Meeks--------------------

Mr. Capuano-·---------------

Mr. Clay -----------·---------

Mr. Lynch--------------------

Mr. David Scott (GAl ________ __ 

Mr. AI Green (TX) ____________ _ 

Mr. Cleaver------------------

Ms. Moore·-------------------

Mr. Ellison-------------------

Mr. Perlmutter ______________ __ 

Mr. Himes 

Mr. Foster--------------------

Mr. Kildee __________________ __ 

Mr. Delaney------------------

Ms. Sinema ------------------

Mrs. Beatty ________________ __ 

Mr. Heck---------------------

Mr. Vargas __________________ _ 

Mr. Gottheimer ______________ _ 

Mr. Gonzalez (TX) ___________ __ 

Mr. Crist---------------------

Mr. Kihuen -------------------

Yea Nay Present 

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COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the findings and recommendations of the Committee based on oversight activities under clause 2(b)(1) of rule X 

of the Rules of the House of Representatives, are incorporated in 

the descriptive portions of this report. 

PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House 

of Representatives, the Committee states that H.R. 2255 will allow 

mortgage appraisal services donated by a fee appraiser to an organization that is eligible to receive tax-deductible charitable contributions to be deemed customary and reasonable. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee adopts as its own the estimate of new budget authority, entitlement authority, or tax expenditures or revenues contained in the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

CONGRESSIONAL BUDGET OFFICE ESTIMATES

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate provided by 

the Congressional Budget Office pursuant to section 402 of the 

Congressional Budget Act of 1974: 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, January 26, 2018. 

Hon. JEB HENSARLING, 

Chairman, Committee on Financial Services, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 2255, the HOME Act. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Stephen Rabent. 

Sincerely, 

KEITH HALL, Director. 

Enclosure. 

H.R. 2255—HOME Act 

Under current law, mortgage lenders are required to compensate 

property appraisers at a customary and reasonable rate for performing appraisal services. H.R. 2255 would deem appraisal services donated to an organization that is eligible to receive tax-deductible charitable contributions to be customary and reasonable 

for purposes of that requirement. 

Using information from the Consumer Financial Protection Bu- reau (CFPB), CBO estimates that enacting H.R. 2255 would cost $1 

6 

million over the 2018–2020 period for several agencies to prepare 

an interagency rule amending their regulations to reflect the new 

appraisal requirements. 

Costs incurred by the Federal Deposit Insurance Corporation, the 

National Credit Union Administration, the Office of the Comptroller of the Currency, and the Federal Housing Finance Agency 

are recorded in the budget as increases in direct spending. Those 

agencies are authorized to collect premiums and fees from the financial institutions they regulate to fully cover such administrative 

expenses. The CFPB is permanently authorized to spend amounts 

transferred from the Federal Reserve. Because that activity is not 

subject to appropriation, the CFPB’s expenditures are recorded in 

the budget as direct spending. In total, CBO estimates that enacting H.R. 2255 would increase net direct spending by less than 

$500,000 over the 2018–2020 period. 

Costs to the Federal Reserve System reduce remittances to the 

Treasury, which are recorded in the budget as revenues. CBO estimates that enacting H.R. 2255 would decrease such revenues by 

less than $500,000 over the 2018–2020 period. 

The net effect on the deficit would be insignificant. Because enacting H.R. 2255 would affect direct spending and revenues, payas-you-go procedures apply. 

CBO estimates that enacting H.R. 2255 would not significantly 

increase net direct spending or on-budget deficits in any of the four 

consecutive 10-year periods beginning in 2028. 

H.R. 2255 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act. 

The CBO staff contact for this estimate is Stephen Rabent. The 

estimate was approved by H. Samuel Papenfuss, Deputy Assistant 

Director for Budget Analysis. 

FEDERAL MANDATES STATEMENT

This information is provided in accordance with section 423 of 

the Unfunded Mandates Reform Act of 1995. 

The Committee has determined that the bill does not contain 

Federal mandates on the private sector. The Committee has determined that the bill does not impose a Federal intergovernmental 

mandate on State, local, or tribal governments. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of the section 102(b)(3) of the 

Congressional Accountability Act. 

EARMARK IDENTIFICATION

With respect to clause 9 of rule XXI of the Rules of the House 

of Representatives, the Committee has carefully reviewed the provisions of the bill and states that the provisions of the bill do not 

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contain any congressional earmarks, limited tax benefits, or limited 

tariff benefits within the meaning of the rule. 

DUPLICATION OF FEDERAL PROGRAMS

In compliance with clause 3(c)(5) of rule XIII of the Rules of the 

House of Representatives, the Committee states that no provision 

of the bill establishes or reauthorizes: (1) a program of the Federal 

Government known to be duplicative of another Federal program; 

(2) a program included in any report from the Government Accountability Office to Congress pursuant to section 21 of Public 

Law 111–139; or (3) a program related to a program identified in 

the most recent Catalog of Federal Domestic Assistance, published 

pursuant to the Federal Program Information Act (Pub. L. No. 95– 

220, as amended by Pub. L. No. 98–169). 

DISCLOSURE OF DIRECTED RULEMAKING

Pursuant to section 3(i) of H. Res. 5, (115th Congress), the following statement is made concerning directed rulemakings: The 

Committee estimates that the bill requires no directed rulemakings 

within the meaning of such section. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

This section cites H.R. 2255 as the ‘‘Housing Opportunities Made 

Easier Act’’ or the ‘‘HOME Act’’. 

Section 2. Exemption from Truth in Lending Act 

This section amends the Truth in Lending Act (TILA) to allow 

mortgage appraisal services donated by fee appraisers to an organization that is eligible to receive tax-deductible charitable contributions as defined by Section 170(c)(2) of the Internal Revenue Code 

of 1986, be deemed customary and reasonable. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

and existing law in which no change is proposed is shown in 

roman): 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (new matter is printed in italic 

and existing law in which no change is proposed is shown in 

roman): 

SECTION 129E OF THE TRUTH IN LENDING ACT 

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§ 129E. Appraisal independence requirements 

(a) IN GENERAL.—It shall be unlawful, in extending credit or in 

providing any services for a consumer credit transaction secured by 

the principal dwelling of the consumer, to engage in any act or 

practice that violates appraisal independence as described in or 

pursuant to regulations prescribed under this section. 

(b) APPRAISAL INDEPENDENCE.—For purposes of subsection (a), 

acts or practices that violate appraisal independence shall include— 

(1) any appraisal of a property offered as security for repayment of the consumer credit transaction that is conducted in 

connection with such transaction in which a person with an interest in the underlying transaction compensates, coerces, extorts, colludes, instructs, induces, bribes, or intimidates a person, appraisal management company, firm, or other entity conducting or involved in an appraisal, or attempts, to compensate, coerce, extort, collude, instruct, induce, bribe, or intimidate such a person, for the purpose of causing the appraised value assigned, under the appraisal, to the property to 

be based on any factor other than the independent judgment 

of the appraiser; 

(2) mischaracterizing, or suborning any mischaracterization 

of, the appraised value of the property securing the extension 

of the credit; 

(3) seeking to influence an appraiser or otherwise to encourage a targeted value in order to facilitate the making or pricing 

of the transaction; and 

(4) withholding or threatening to withhold timely payment 

for an appraisal report or for appraisal services rendered when 

the appraisal report or services are provided for in accordance 

with the contract between the parties. 

(c) EXCEPTIONS.—The requirements of subsection (b) shall not be 

construed as prohibiting a mortgage lender, mortgage broker, mortgage banker, real estate broker, appraisal management company, 

employee of an appraisal management company, consumer, or any 

other person with an interest in a real estate transaction from asking an appraiser to undertake 1 or more of the following: 

(1) Consider additional, appropriate property information, including the consideration of additional comparable properties 

to make or support an appraisal. 

(2) Provide further detail, substantiation, or explanation for 

the appraiser’s value conclusion. 

(3) Correct errors in the appraisal report. 

(d) PROHIBITIONS ON CONFLICTS OF INTEREST.—No certified or licensed appraiser conducting, and no appraisal management company procuring or facilitating, an appraisal in connection with a 

consumer credit transaction secured by the principal dwelling of a 

consumer may have a direct or indirect interest, financial or otherwise, in the property or transaction involving the appraisal. 

(e) MANDATORY REPORTING.—Any mortgage lender, mortgage 

broker, mortgage banker, real estate broker, appraisal management company, employee of an appraisal management company, or 

any other person involved in a real estate transaction involving an 

appraisal in connection with a consumer credit transaction secured 

by the principal dwelling of a consumer who has a reasonable basis 

9 

to believe an appraiser is failing to comply with the Uniform 

Standards of Professional Appraisal Practice, is violating applicable 

laws, or is otherwise engaging in unethical or unprofessional conduct, shall refer the matter to the applicable State appraiser certifying and licensing agency. 

(f) NO EXTENSION OF CREDIT.—In connection with a consumer 

credit transaction secured by a consumer’s principal dwelling, a 

creditor who knows, at or before loan consummation, of a violation 

of the appraisal independence standards established in subsections 

(b) or (d) shall not extend credit based on such appraisal unless the 

creditor documents that the creditor has acted with reasonable diligence to determine that the appraisal does not materially misstate 

or misrepresent the value of such dwelling. 

(g) RULES AND INTERPRETIVE GUIDELINES.— 

(1) IN GENERAL.—Except as provided under paragraph (2), 

the Board, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration Board, the Federal Housing Finance Agency, and 

the Bureau may jointly issue rules, interpretive guidelines, and 

general statements of policy with respect to acts or practices 

that violate appraisal independence in the provision of mortgage lending services for a consumer credit transaction secured 

by the principal dwelling of the consumer and mortgage brokerage services for such a transaction, within the meaning of 

subsections (a), (b), (c), (d), (e), (f), (h), and (i). 

(2) INTERIM FINAL REGULATIONS.—The Board shall, for purposes of this section, prescribe interim final regulations no 

later than 90 days after the date of enactment of this section 

defining with specificity acts or practices that violate appraisal 

independence in the provision of mortgage lending services for 

a consumer credit transaction secured by the principal dwelling of the consumer or mortgage brokerage services for such a 

transaction and defining any terms in this section or such regulations. Rules prescribed by the Board under this paragraph 

shall be deemed to be rules prescribed by the agencies jointly 

under paragraph (1). 

(h) APPRAISAL REPORT PORTABILITY.—Consistent with the requirements of this section, the Board, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National 

Credit Union Administration Board, the Federal Housing Finance 

Agency, and the Bureau may jointly issue regulations that address 

the issue of appraisal report portability, including regulations that 

ensure the portability of the appraisal report between lenders for 

a consumer credit transaction secured by a 1-4 unit single family 

residence that is the principal dwelling of the consumer, or mortgage brokerage services for such a transaction. 

(i) CUSTOMARY AND REASONABLE FEE.— 

(1) IN GENERAL.—Lenders and their agents shall compensate 

fee appraisers at a rate that is customary and reasonable for 

appraisal services performed in the market area of the property being appraised. Evidence for such fees may be established by objective third-party information, such as government 

agency fee schedules, academic studies, and independent private sector surveys. Fee studies shall exclude assignments ordered by known appraisal management companies. 

10 

(2) FEE APPRAISER DEFINITION.—For purposes of this section, 

the term ‘‘fee appraiser’’ means a person who is not an employee of the mortgage loan originator or appraisal management company engaging the appraiser and is— 

(A) a State licensed or certified appraiser who receives 

a fee for performing an appraisal and certifies that the appraisal has been prepared in accordance with the Uniform 

Standards of Professional Appraisal Practice; or 

(B) a company not subject to the requirements of section 

1124 of the Financial Institutions Reform, Recovery, and 

Enforcement Act of 1989 (12 U.S.C. 3331 et seq.) that utilizes the services of State licensed or certified appraisers 

and receives a fee for performing appraisals in accordance 

with the Uniform Standards of Professional Appraisal 

Practice. 

(3) EXCEPTION FOR COMPLEX ASSIGNMENTS.—In the case of 

an appraisal involving a complex assignment, the customary 

and reasonable fee may reflect the increased time, difficulty, 

and scope of the work required for such an appraisal and include an amount over and above the customary and reasonable 

fee for non-complex assignments. 

(4) RULE OF CONSTRUCTION RELATED TO APPRAISAL DONA- TIONS.—For purposes of paragraph (1), if a fee appraiser voluntarily donates appraisal services to an organization described in 

section 170(c)(2) of the Internal Revenue Code of 1986, such voluntary donation shall be deemed customary and reasonable. 

(j) SUNSET.—Effective on the date the interim final regulations 

are promulgated pursuant to subsection (g), the Home Valuation 

Code of Conduct announced by the Federal Housing Finance Agency on December 23, 2008, shall have no force or effect. 

(k) PENALTIES.— (1) FIRST VIOLATION.—In addition to the enforcement provisions referred to in section 130, each person who violates this 

section shall forfeit and pay a civil penalty of not more than 

$10,000 for each day any such violation continues. 

(2) SUBSEQUENT VIOLATIONS.—In the case of any person on 

whom a civil penalty has been imposed under paragraph (1), 

paragraph (1) shall be applied by substituting ‘‘$20,000’’ for 

‘‘$10,000’’ with respect to all subsequent violations. 

(3) ASSESSMENT.—The agency referred to in subsection (a) or 

(c) of section 108 with respect to any person described in paragraph (1) shall assess any penalty under this subsection to 

which such person is subject. 

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