II 

116TH CONGRESS 

1ST SESSION S. 1722 

To amend the National Housing Act to authorize State-licensed appraisers 

to conduct appraisals in connection with mortgages insured by the FHA 

and to ensure compliance with the existing appraiser education and 

competency requirements, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 5, 2019 

Mr. THUNE (for himself, Mr. TESTER, Mr. HOEVEN, Mr. KING, Mr. ROUNDS, 

and Ms. SMITH) introduced the following bill; which was read twice and 

referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To amend the National Housing Act to authorize Statelicensed appraisers to conduct appraisals in connection 

with mortgages insured by the FHA and to ensure compliance with the existing appraiser education and competency requirements, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘FHA Appraiser Eligi5 bility Expansion Act’’. 

6 SEC. 2. APPRAISER STANDARDS. 

7 (a) CERTIFICATION OR LICENSING.— 


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1 (1) IN GENERAL.—Section 202(g)(5) of the Na2 tional Housing Act (12 U.S.C. 1708(g)(5)) is 

3 amended by striking subparagraphs (A) and (B) and 

4 inserting the following: 

5 ‘‘(A) be certified or licensed by the State 

6 in which the property to be appraised is located; 

7 ‘‘(B) be knowledgeable of the Uniform 

8 Standards of Professional Appraisal Practice 

9 and the appraisal requirements established by 

10 the Federal Housing Administration; 

11 ‘‘(C) meet the competency requirements 

12 described in the Uniform Standards of Profes13 sional Appraisal Practice before accepting an 

14 assignment; and 

15 ‘‘(D) have demonstrated verifiable edu16 cation in the appraisal requirements established 

17 by the Federal Housing Administration under 

18 this subsection, which shall include the comple19 tion of a course or seminar that educates ap20 praisers on those appraisal requirements and is 

21 provided by the Federal Housing Administra22 tion or is approved by the Course Approval Pro23 gram of the Appraiser Qualification Board of 

24 the Appraisal Foundation or a State appraiser 

25 certifying and licensing agency.’’. 


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1 (2) APPLICATION.—Subparagraph (D) of sec2 tion 202(g)(5) of the National Housing Act (12 

3 U.S.C. 1708(g)(5)), as added by paragraph (1), 

4 shall not apply with respect to any appraiser ap5 proved by the Federal Housing Administration to 

6 conduct appraisals on mortgages insured under title 

7 II of the National Housing Act (12 U.S.C. 1707 et 

8 seq.) on or before the date on which the mortgagee 

9 letter or other guidance or regulations take effect 

10 under subsection (c)(3). 

11 (b) COMPLIANCE WITH VERIFIABLE EDUCATION

12 AND COMPETENCY REQUIREMENTS.—Effective beginning 

13 on the date on which the mortgagee letter or other guid14 ance or regulations take effect under subsection (c)(3), no 

15 appraiser may conduct an appraisal for any mortgage in16 sured under title II of the National Housing Act (12 

17 U.S.C. 1707 et seq.) unless— 

18 (1) the appraiser is in compliance with the re19 quirements under subparagraphs (A), (B), and (C) 

20 section 202(g)(5) of such Act (12 U.S.C. 

21 1708(g)(5)), as amended by subsection (a); and 

22 (2) if the appraiser was not approved to con23 duct such appraisals before the date on which the 

24 mortgagee letter or other guidance or regulations 

25 take effect under subsection (c)(3), the appraiser is 


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1 in compliance with subparagraph (D) of such section 

2 202(g)(5). 

3 (c) IMPLEMENTATION.—Not later than the 240 days 

4 after the date of enactment of this Act, the Secretary of 

5 Housing and Urban Development shall issue a mortgagee 

6 letter or other guidance or regulations that shall— 

7 (1) implement the amendments made by sub8 section (a); 

9 (2) clearly set forth all of the specific require10 ments under section 202(g)(5) of the National 

11 Housing Act (12 U.S.C. 1708(g)(5)), as amended by 

12 this Act, for approval to conduct appraisals under 

13 title II of such Act (12 U.S.C. 1707 et seq.), which 

14 shall include— 

15 (A) providing that, before the effective 

16 date of the mortgagee letter or other guidance 

17 or regulations, a demonstration of competency 

18 and completion of training that meet the re19 quirements under subparagraphs (B), (C), and 

20 (D) of such section 202(g)(5), as amended by 

21 subsection (a), shall be considered to fulfill the 

22 requirements under such subparagraphs; and 

23 (B) providing a method for appraisers to 

24 demonstrate such prior competency and comple25 tion; and 


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1 (3) take effect not later than the date that is 

2 180 days after the date on which the Secretary 

3 issues the mortgagee letter or other guidance or reg4 ulations. 

Æ 


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