SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Appraisal Moderniza-
tion Act’’. 
SEC. 2. RECONSIDERATION OF VALUE. 
(1) IN GENERAL.—Section 129E of the Truth 
In Lending Act (15 U.S.C. 1639e) is amended— 
(A) by redesignating subsections (j) and 
(k) as subsections (k) and (l), respectively; and 
(B) by inserting after subsection (i) the 
following: 
‘‘(j) CONSUMER RIGHT TO RECONSIDERATION OF 
VALUE OR SUBSEQUENT APPRAISAL.— 
‘‘(1) DEFINITIONS.—In this section: 
‘‘(A) UNACCEPTABLE
APPRAISAL
PRAC-
TICE.—The term ‘unacceptable appraisal prac-
tice’ means an appraisal report that— 
‘‘(i) uses unsupported or subjective 
terms to assess or rate the property with-
out providing a foundation for analysis and 
contextual information; 
‘‘(ii) uses inaccurate or incomplete 
data about the subject property, the neigh-
borhood, the market area, or any com-
parable property; 
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‘‘(iii) includes references, statements, 
or comparisons about crime rates or crime 
statistics, whether objective or subjective; 
‘‘(iv) relies in the appraisal analysis 
on comparable properties that were not 
personally inspected by the appraiser when 
required by the appraisal’s scope of work; 
‘‘(v) relies in the appraisal analysis on 
inappropriate comparable properties; 
‘‘(vi) fails to use comparable prop-
erties that are more similar, or nearer, to 
the subject property without adequate ex-
planation; 
‘‘(vii) uses comparable property data 
provided by any interested party to the 
transaction without verification by a disin-
terested party; 
‘‘(viii) uses inappropriate adjustments 
for differences between the subject prop-
erty and the comparable properties that do 
not reflect the market’s reaction to such 
differences; or 
‘‘(ix) fails to make proper adjust-
ments, including time adjustments for dif-
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ferences between the subject property and 
the comparable properties when necessary. 
‘‘(B) UNSUPPORTED.—The term ‘unsup-
ported’ means, with respect to an appraisal re-
port or an appraiser’s opinion of value, that the 
appraisal report or the opinion of value is not 
supported by relevant evidence and logic. 
‘‘(2) REVIEW.—In connection with a consumer 
credit transaction secured by a consumer’s principal 
dwelling, a creditor shall have a review and resolu-
tion procedure for a consumer-initiated reconsider-
ation of value or subsequent appraisal that complies 
with the following requirements: 
‘‘(A) The creditor shall complete its own 
appraisal review before delivering the appraisal 
to the consumer. 
‘‘(B) The creditor shall have policies and 
procedures that provide the consumer with a 
process to submit 1 request for a reconsider-
ation of value and subsequent appraisal prior to 
the loan closing or within 60 calendar days of 
denial of a credit application if the consumer 
believes the appraisal report may be unsup-
ported, may be deficient due to an unacceptable 
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appraisal practice, or may reflect discrimina-
tion. 
‘‘(C) At the time of application and upon 
delivery of the appraisal report to the con-
sumer, the creditor shall provide a written dis-
closure to the consumer describing the process 
for requesting a reconsideration of value or sub-
sequent appraisal, which written disclosure shall 
include a standardized format for the consumer 
to submit the request for a reconsideration of 
value, including— 
‘‘(i) the name of the borrower; 
‘‘(ii) the property address; 
‘‘(iii) the effective date of the ap-
praisal; 
‘‘(iv) the appraiser’s name; 
‘‘(v) the date of the request; 
‘‘(vi) a description of why the con-
sumer believes the appraisal report may be 
unsupported, may be deficient due to an 
unacceptable appraisal practice, or may re-
flect discrimination; 
‘‘(vii) 
any 
additional 
information, 
data, including not more than 5 alternative 
comparable properties and the related data 
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sources that the consumer would like the 
appraiser to consider; and 
‘‘(viii) an explanation of why the new 
information, data, or comparable prop-
erties support the reconsideration of value. 
‘‘(D) The creditor shall obtain the nec-
essary information from the consumer if the 
consumer’s request for reconsideration of value 
or subsequent appraisal is unclear or requires 
more information. 
‘‘(E) The creditor shall have a standard-
ized format to communicate the reconsideration 
of value to the appraiser, which format shall in-
clude— 
‘‘(i) the name of the borrower; 
‘‘(ii) the property address; 
‘‘(iii) the effective date of the ap-
praisal; 
‘‘(iv) the appraiser’s name; 
‘‘(v) the date of the request; 
‘‘(vi) a description of any area of the 
appraisal report that may be unsupported, 
may be deficient due to an unacceptable 
appraisal practice, or may reflect discrimi-
nation; 
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‘‘(vii) 
any 
additional 
information, 
data, including not more than 5 alternative 
comparable properties and the related data 
sources that the consumer would like the 
appraiser to consider; 
‘‘(viii) an explanation of why the new 
information, data, or comparable prop-
erties support the reconsideration of value; 
‘‘(ix) a definition of turn-time expecta-
tions for the appraiser to communicate the 
reconsideration of value results back to the 
creditor; 
‘‘(x) instructions for delivering the re-
consideration of value response as part of 
a revised appraisal report that includes 
commentary on conclusions regardless of 
the outcome; and 
‘‘(xi) a reference for appraisers on 
how to correct minor appraisal issues or 
non-material errors not related to the re-
consideration of value process. 
‘‘(3) SUBSEQUENT
APPRAISAL
AND
REFER-
RAL.— 
‘‘(A) IN GENERAL.—If the creditor identi-
fies material deficiencies in the appraisal report 
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that are not corrected or addressed by the ap-
praiser upon request of the creditor, including 
through a consumer-initiated reconsideration of 
value, or if there is evidence of unsupported or 
unacceptable appraisal practices, the creditor 
shall— 
‘‘(i) at the request of the consumer, 
order a subsequent appraisal at the credi-
tor’s own expense; and 
‘‘(ii) forward the appraisal report and 
the creditor’s summary of findings to the 
appropriate appraisal licensing agency or 
regulatory board. 
‘‘(B) DISCRIMINATION.—If the creditor 
has reason to believe that an appraisal report 
reflects discrimination, the creditor shall— 
‘‘(i) order a subsequent appraisal, at 
the creditor’s own expense; 
‘‘(ii) forward the appraisal report and 
the creditor’s summary of findings to the 
appropriate local, State, or Federal en-
forcement agency; and 
‘‘(iii) upon a final determination of 
discrimination by the appropriate local, 
State, or Federal enforcement agency, re-
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ceive a reimbursement from the appraiser 
covering the cost of the subsequent ap-
praisal ordered by the creditor. 
‘‘(C) DEFINITION.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), in this paragraph, the 
term ‘reason to believe’ means that the 
creditor has reviewed the applicable law 
and available evidence and determined that 
a potential violation of Federal or state 
antidiscrimination law exists. The available 
evidence may include the appraisal report, 
loan files, written communications, credible 
observations by persons with direct knowl-
edge, statistical analysis, and the apprais-
er’s response to the request for a reconsid-
eration of value. 
‘‘(ii) EXCEPTION.—The term ‘reason 
to believe’ does not mean that there is a 
final legal determination of discrimination. 
‘‘(4) DOCUMENT
RETENTION.—The creditor 
shall retain all documentation and written commu-
nications related to the request for reconsideration 
of value or subsequent appraisal in the loan file dur-
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ing the 7-year period beginning on the date on which 
the consumer submitted the credit application. 
‘‘(5) RULE
OF
CONSTRUCTION.—This sub-
section is consistent with the exceptions to the ap-
praiser independence requirements found in sub-
section (c). Nothing in this subsection shall be con-
strued to require a creditor to submit a reconsider-
ation of value to the original appraiser before order-
ing a subsequent appraisal from a subsequent ap-
praiser.’’. 
(2) RULES
AND
INTERPRETATIVE
GUIDE-
LINES.—Section 129E(g) of the Truth in Lending 
Act (15 U.S.C. 1639e(g)) is amended— 
(A) in paragraph (1), by striking ‘‘para-
graph (2), the Board’’ and inserting ‘‘para-
graphs (2) and (3), the Bureau’’; and 
(B) by adding at the end the following: 
‘‘(3) FINAL RULE.—Not later than 1 year after 
the date of enactment of this paragraph, the Federal 
Housing Finance Agency shall issue a final rule 
after notice and comment and issue such guidance 
as may be necessary to carry out and enforce sub-
section (j).’’. 
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SEC. 3. PUBLIC APPRAISAL DATABASE. 
(1) COVERED AGENCIES DEFINED.—The term 
‘‘covered agencies’’ means— 
(A) the Federal Housing Finance Agency, 
on behalf of the Federal National Mortgage As-
sociation and the Federal Home Loan Mortgage 
Corporation; 
(B) the Department of Housing and 
Urban Development, including the Federal 
Housing Administration; 
(C) the Department of Agriculture; and 
(D) the Department of Veterans Affairs. 
(2) FEASIBILITY REPORT.—No later than 240 
days after the date of enactment of this Act, the 
Comptroller General of the United States shall issue 
a public report to Congress assessing the feasibility 
of creating a publicly available appraisal database 
that consists of a searchable and downloadable ap-
praisal level public use file that consolidates ap-
praisal data held or aggregated by covered agencies, 
which shall include— 
(A) the costs and benefits associated with 
establishing and maintaining the public data-
base; 
(B) the benefits and risks associated with 
either the Federal Housing Finance Agency or 
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the Bureau of Consumer Financial Protection 
being responsible for the public database and 
whether there is another Federal agency best 
suited for implementing and administering such 
database; 
(C) any safety and soundness, antitrust, or 
consumer privacy-related risks associated with 
making certain appraisal data factors publicly 
available, including whether— 
(i) there are any existing legal re-
quirements, including under the Home 
Mortgage Disclosure Act of 1974 (12 
U.S.C. 2801 et seq.) and section 552 of 
title 5, United States Code (commonly 
known as the ‘‘Freedom of Information 
Act’’), or additional actions Federal agen-
cies could take to mitigate such risks, such 
as modifying or aggregating data, or elimi-
nating personally identifiable information; 
and 
(ii) there are any data factors that, if 
made public, may violate conduct, ethics, 
or other professional standards as they re-
late to appraisals and appraisal or valu-
ation professionals; 
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(D) the feasibility of consolidating or 
matching appraisal data held by covered agen-
cies with corresponding data that is required 
and made public under the Home Mortgage 
Disclosure Act of 1974 (12 U.S.C. 2801 et 
seq.); 
(E) whether the publication of any ap-
praisal data factors may pose unfair business 
advantages within the valuation industry; 
(F) the feasibility of including all valuation 
data held by covered agencies, including data 
produced by automated valuation models; 
(G) the feasibility and benefits of making 
the full appraisal dataset, including any modi-
fied fields, available to— 
(i) Federal agencies, including for 
purposes related to enforcement and super-
vision responsibilities; 
(ii) relevant State licensing, super-
vision, and enforcement agencies and State 
attorneys general; 
(iii) approved researchers, including 
academics and nonprofit organizations 
that, in connection with their mission, 
work to ensure the fairness and consist-
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ency of home valuations, including apprais-
als; and 
(iv) any other entities identified by 
the Comptroller General as having a com-
pelling use for disaggregated data; 
(H) what appraisal data is already avail-
able in the public domain; and 
(I) the feasibility of incorporating legacy 
data held by covered agencies during the period 
beginning on January 1, 2017 and ending on 
the date of enactment of this Act, and whether 
there are specific data points not easily consoli-
dated or matched, as described in subparagraph 
(D), with more recent data. 
(3) PURPOSE.—The database described in para-
graph (2) shall be used to provide the public, the 
Federal Government, and State governments with 
residential real estate appraisal data to help deter-
mine whether financial institutions, appraisal man-
agement companies, appraisers, valuation tech-
nologies, such as automated valuation models, and 
other valuation professionals are serving the housing 
market in a manner that is efficient and consistent 
for all mortgage loan applicants, borrowers, and 
communities. 
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(4) CONSULTATION.—As part of the informa-
tion used in the report required under paragraph 
(2), the Comptroller General of the United States 
shall conduct interviews with— 
(A) relevant Federal agencies; 
(B) relevant State licensing, supervision, 
and enforcement agencies and State attorneys 
general; 
(C) appraisers and other home valuation 
industry professionals; 
(D) mortgage lending institutions; 
(E) fair housing and fair lending experts; 
and 
(F) any other relevant stakeholders as de-
termined by the Comptroller General. 
(5) HEARING.—Upon the completion of the re-
port under paragraph (2), the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate and 
the Committee on Financial Services of the House of 
Representatives shall each hold a hearing on the 
findings of the report and the feasibility of estab-
lishing a public appraisal-level appraisal database. 
Æ 
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