Title: FHA Appraiser Eligibility Expansion Act
Policy area: Housing and Community Development

Summary:
FHA Appraiser Eligibility Expansion Act
This bill modifies requirements for appraisers of Federal Housing Administration-insured mortgages. Currently, an appraiser must be certified by certain state or national entities. The bill removes the national entities from the list of approved certification entities and provides additional competency and education requirements.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1722 Introduced in Senate (IS)]

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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 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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``FHA Appraiser Eligibility Expansion 
Act''.

SEC. 2. APPRAISER STANDARDS.

    (a) Certification or Licensing.--
            (1) In general.--Section 202(g)(5) of the National Housing 
        Act (12 U.S.C. 1708(g)(5)) is amended 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;
                    ``(B) be knowledgeable of the Uniform Standards of 
                Professional Appraisal Practice and the appraisal 
                requirements established by the Federal Housing 
                Administration;
                    ``(C) meet the competency requirements described in 
                the Uniform Standards of Professional Appraisal 
                Practice before accepting an assignment; and
                    ``(D) have demonstrated verifiable education in the 
                appraisal requirements established by the Federal 
                Housing Administration under this subsection, which 
                shall include the completion of a course or seminar 
                that educates appraisers on those appraisal 
                requirements and is provided by the Federal Housing 
                Administration or is approved by the Course Approval 
                Program of the Appraiser Qualification Board of the 
                Appraisal Foundation or a State appraiser certifying 
                and licensing agency.''.
            (2) Application.--Subparagraph (D) of section 202(g)(5) of 
        the National Housing Act (12 U.S.C. 1708(g)(5)), as added by 
        paragraph (1), shall not apply with respect to any appraiser 
        approved by the Federal Housing Administration to conduct 
        appraisals on mortgages insured under title II of the National 
        Housing Act (12 U.S.C. 1707 et seq.) on or before the date on 
        which the mortgagee letter or other guidance or regulations 
        take effect under subsection (c)(3).
    (b) Compliance With Verifiable Education and Competency 
Requirements.--Effective beginning on the date on which the mortgagee 
letter or other guidance or regulations take effect under subsection 
(c)(3), no appraiser may conduct an appraisal for any mortgage insured 
under title II of the National Housing Act (12 U.S.C. 1707 et seq.) 
unless--
            (1) the appraiser is in compliance with the requirements 
        under subparagraphs (A), (B), and (C) section 202(g)(5) of such 
        Act (12 U.S.C. 1708(g)(5)), as amended by subsection (a); and
            (2) if the appraiser was not approved to conduct such 
        appraisals before the date on which the mortgagee letter or 
        other guidance or regulations take effect under subsection 
        (c)(3), the appraiser is in compliance with subparagraph (D) 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 other guidance or regulations that 
shall--
            (1) implement the amendments made by subsection (a);
            (2) clearly set forth all of the specific requirements 
        under section 202(g)(5) of the National Housing Act (12 U.S.C. 
        1708(g)(5)), as amended by this Act, for approval to conduct 
        appraisals under title II of such Act (12 U.S.C. 1707 et seq.), 
        which shall include--
                    (A) providing that, before the effective date of 
                the mortgagee letter or other guidance or regulations, 
                a demonstration of competency and completion of 
                training that meet the requirements under subparagraphs 
                (B), (C), and (D) of such section 202(g)(5), as amended 
                by subsection (a), shall be considered to fulfill the 
                requirements under such subparagraphs; and
                    (B) providing a method for appraisers to 
                demonstrate such prior competency and completion; 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 other guidance or regulations.
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