I 
119TH CONGRESS 
1ST SESSION H. R. 6025 
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 HOUSE OF REPRESENTATIVES 
NOVEMBER 12, 2025 
Mr. DONALDS (for himself, Mr. SHERMAN, and Ms. BYNUM) introduced the 
following bill; which was referred to the Committee on Financial Services 
A BILL 
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 com-
pliance with the existing appraiser education and com-
petency requirements, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Appraisal Industry Im-
provement Act’’. 
SEC. 2. APPRAISAL STANDARDS. 
(a) CERTIFICATION OR LICENSING.— 
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(1) IN GENERAL.—Section 202(g)(5) of the Na-
tional Housing Act (12 U.S.C. 1708(g)(5)) is 
amended— 
(A) by moving the paragraph two ems to 
the left; and 
(B) by striking subparagraphs (A) and (B) 
and inserting the following: 
‘‘(A) be certified or licensed by the State in 
which the property to be appraised is located, except 
that a Federal employee who has as their primary 
duty conducting appraisal-related activities and who 
chooses to become a State-licensed or certified real 
estate appraiser need only to be licensed or certified 
in 1 State or territory to perform appraisals on 
mortgages insured by the Federal Housing Adminis-
tration in all States and territories; 
‘‘(B) meet the requirements under the com-
petency rule set forth in the Uniform Standards of 
Professional Appraisal Practice before accepting an 
assignment; and 
‘‘(C) have demonstrated verifiable education in 
the appraisal requirements established by the Fed-
eral Housing Administration under this subsection, 
which shall include the completion of a course or 
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seminar that educates appraisers on those appraisal 
requirements, which shall be provided by— 
‘‘(i) the Federal Housing Administration; 
or 
‘‘(ii) a third party, so long as the course is 
approved by the Secretary or a State appraiser 
certifying or licensing agency.’’. 
(2) APPLICATION.—Subparagraph (C) of sec-
tion 202(g)(5) of the National Housing Act (12 
U.S.C. 1708(g)(5)), as added by subparagraph (A), 
shall not apply with respect to any certified ap-
praiser approved by the Federal Housing Adminis-
tration to conduct appraisals on property securing a 
mortgage to be insured by the Federal Housing Ad-
ministration on or before the effective date under 
paragraph (3)(C). 
(b) COMPLIANCE WITH VERIFIABLE EDUCATION 
AND COMPETENCY REQUIREMENTS.—On and after the ef-
fective date under paragraph (3)(C), no appraiser may 
conduct an appraisal on a property securing a mortgage 
to be insured by the Federal Housing Administration un-
less— 
(1) the appraiser is in compliance with the re-
quirements under subparagraphs (A) and (B) of sec-
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tion 202(g)(5) of such Act (12 U.S.C. 1708(g)(5)), 
as amended by paragraph (1); and 
(2) if the appraiser was not approved by the 
Federal Housing Administration to conduct apprais-
als on mortgages insured by the Federal Housing 
Administration before the date on which the mort-
gagee letter or guidance take effect under paragraph 
(3)(C), the appraiser is in compliance with subpara-
graph (C) of such section 202(g)(5). 
(c) IMPLEMENTATION.—Not later than the 240 days 
after the date of enactment of this Act, the Secretary of 
Housing and Urban Development shall issue a mortgagee 
letter or guidance that shall— 
(1) implement the amendments made by para-
graph (1); 
(2) clearly set forth all of the specific require-
ments under section 202(g)(5) of the National 
Housing Act (12 U.S.C. 1708(g)(5)), as amended by 
paragraph (1), for approval to conduct appraisals on 
property secured by a mortgage to be insured by the 
Federal Housing Administration, which shall in-
clude— 
(A) providing that, before the effective 
date of the mortgagee letter or guidance, com-
pliance with the requirements under subpara-
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graphs (A), (B), and (C) of such section 
202(g)(5), as amended by paragraph (1), shall 
be considered to fulfill the requirements under 
such subparagraphs; and 
(B) providing a method for appraisers to 
demonstrate such prior compliance; and 
(3) take effect not later than the date that is 
180 days after the date on which the Secretary 
issues the mortgagee letter or guidance. 
SEC. 3. ANNUAL REGISTRY FEES FOR APPRAISAL MANAGE-
MENT COMPANIES. 
Section 1109(a) of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 (12 U.S.C. 
3338(a)) is amended, in the matter following clause (ii) 
of paragraph (4)(B), by adding at the end the following: 
‘‘Subject to the approval of the Council, the Appraisal 
Subcommittee may adjust fees established under clause (i) 
or (ii) to carry out its functions under this Act.’’. 
SEC. 4. STATE CREDENTIALED TRAINEES. 
(a) MAINTENANCE ON NATIONAL REGISTRY.—Sec-
tion 1103(a) of the Financial Institutions Reform, Recov-
ery, and Enforcement Act of 1989 (12 U.S.C. 3332(a)) 
is amended— 
(1) in paragraph (3)— 
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(A) by inserting ‘‘and State credentialed 
trainee appraisers’’ after ‘‘licensed appraisers’’; 
and 
(B) by striking ‘‘and’’ at the end; 
(2) by striking paragraph (4); 
(3) by redesignating paragraphs (5) and (6) as 
paragraphs (4) and (5), respectively; and 
(4) in paragraph (4), as so redesignated— 
(A) by striking ‘‘year. The report shall also 
detail’’ and inserting ‘‘year, details’’; 
(B) by striking ‘‘provide’’ and inserting 
‘‘provides’’; and 
(C) by striking the period at the end and 
inserting ‘‘; and’’. 
(b) ANNUAL REGISTRY FEES.— 
(1) IN GENERAL.—Section 1109 of the Finan-
cial Institutions Reform, Recovery, and Enforcement 
Act of 1989 (12 U.S.C. 3338) is amended— 
(A) in the section heading, by striking ‘‘OR 
LICENSED’’ and inserting ‘‘, LICENSED, AND 
CREDENTIALED TRAINEE’’; and 
(B) in subsection (a)— 
(i) in paragraph (1), by inserting ‘‘, 
and in the case of a State with a super-
visory or trainee program, a roster listing 
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individuals who have received a State 
trainee credential’’ after ‘‘this title’’; and 
(ii) by striking paragraph (2) and in-
serting the following: 
‘‘(2) transmit reports on the issuance and re-
newal of licenses, certifications, credentials, sanc-
tions, and disciplinary actions, including license, cre-
dential, and certification revocations, on a timely 
basis to the national registry of the Appraisal Sub-
committee;’’. 
(2) RULE OF CONSTRUCTION.—Nothing in the 
amendments made by subparagraph (A) shall re-
quire a State to establish or operate a program for 
State credentialed trainee appraisers, as defined in 
paragraph (12) of section 1121 of the Financial In-
stitutions Reform, Recovery, and Enforcement Act 
of 1989, as added by subsection (d) of this section. 
(c) TRANSACTIONS REQUIRING THE SERVICES OF A 
STATE CERTIFIED APPRAISER.—Section 1113 of the Fi-
nancial Institutions Reform, Recovery, and Enforcement 
Act of 1989 (12 U.S.C. 3342) is amended— 
(1) by striking ‘‘In determining’’ and inserting 
‘‘(a) IN GENERAL.—In determining’’; and 
(2) by adding at the end the following: 
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‘‘(b) USE OF STATE CREDENTIALED TRAINEE AP-
PRAISERS.—In performing an appraisal under this sec-
tion, a State certified appraiser may use the assistance 
of a State credentialed trainee appraiser or an unlicensed 
trainee appraiser, except that a State certified appraiser 
assisted by a trainee shall be liable for final work.’’. 
(d) DEFINITION.—Section 1121 of the Financial In-
stitutions Reform, Recovery, and Enforcement Act of 
1989 (12 U.S.C. 3350) is amended by adding at the end 
the following: 
‘‘(12) STATE
CREDENTIALED
TRAINEE
AP-
PRAISER.—The term ‘State credentialed trainee ap-
praiser’ means an individual who— 
‘‘(A) meets the minimum criteria estab-
lished by the Appraiser Qualification Board for 
a trainee appraiser credential; and 
‘‘(B) is credentialed by a State appraiser 
certifying and licensing agency.’’. 
SEC. 5. GRANTS FOR WORKFORCE AND TRAINING. 
Section 1109(b) of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 (12 U.S.C. 
3338(b)) is amended— 
(1) in paragraph (5)(B), by striking ‘‘and’’ at 
the end; 
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(2) in paragraph (6), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(7) to make grants to State appraiser certi-
fying and licensing agencies, nonprofit organizations, 
and institutions of higher education to support the 
carrying out of education and training activities or 
other activities related to addressing appraiser in-
dustry workforce needs, including recruiting and re-
taining workforce talent, such as through scholar-
ship assistance and career pipeline development.’’. 
SEC. 6. APPRAISAL SUBCOMMITTEE. 
Section 1011 of the Federal Financial Institutions 
Examination Council Act of 1978 (12 U.S.C. 3310) is 
amended, in the first sentence, by inserting ‘‘the Depart-
ment of Veterans Affairs, the Rural Housing Service of 
the Department of Agriculture, the Department of Hous-
ing and Urban Development,’’ after ‘‘Financial Protec-
tion,’’. 
Æ 
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