July 20, 2022
Appraiser Provisions Part of Legislation Approved by House
The House of Representatives on July 14 passed the National Defense Authorization Act, which approved $840 billion in defense spending for 2023. The 329-101 vote came after hundreds of amendments were considered, including a couple that focused on valuation issues.
One valuation-focused amendment is based on HR 3008, the Homebuyer Assistance Act of 2021, legislation that had already passed the House with bipartisan support. The amendment (and HR 3008) was introduced by Rep. Brad Sherman, D-Calif., and would modify requirements for single-family FHA mortgages by allowing appraisers to be state licensed rather than state certified. The amendment would also require compliance with existing appraiser education requirements.
The Appraisal Institute supported the inclusion of this amendment because it addresses long-standing concerns about the implementation of pre-existing FHA appraisal requirements, which differ from those of Fannie Mae, Freddie Mac and the conventional market.
Another amendment is based on a provision found in HR 2553, the Real Estate Valuation Fairness and Improvement Act of 2021, legislation introduced by Rep. Emanuel Cleaver, D-MO, that establishes a grant program for states, nonprofit organizations and institutions of higher education to promote diversity and inclusion in the valuation profession.
A date for a Senate vote on the NDAA legislation has not been set, and inclusion in the bill is no guarantee that the valuation-focused provisions will become law. After the Senate clears the bill, a conference committee will be formed to reconcile the two bills, and many provisions may not make it into a final version signed by President Biden.