Appraisal Modernization Act

The "Appraisal Modernization Act" aims to enhance fairness and consistency in property valuations by amending the Truth in Lending Act. It introduces a new consumer right allowing mortgage loan applicants to request a reconsideration of value or a subsequent appraisal if they believe an appraisal report is unsupported, deficient due to an unacceptable appraisal practice , or reflects discrimination. Creditors are required to establish clear review and resolution procedures for these requests, including providing consumers with a standardized disclosure and process for submission. The bill defines various "unacceptable appraisal practices," such as using unsupported terms, inaccurate data, or relying on crime statistics. If material deficiencies are identified or discrimination is suspected, creditors must order a subsequent appraisal at their own expense and refer findings to relevant regulatory or enforcement agencies, with appraisers potentially reimbursing costs in discrimination cases. Furthermore, the legislation mandates the Comptroller General to conduct a comprehensive study on the feasibility of creating a national public appraisal database within 240 days. This database would consolidate searchable appraisal data from federal agencies like the FHFA, HUD, USDA, and VA, including automated valuation model data. The report must analyze the costs, benefits, and potential risks, such as consumer privacy or antitrust concerns, associated with establishing and maintaining such a database. The ultimate goal of this database is to provide transparency and help determine if financial institutions and valuation professionals are serving the housing market efficiently and consistently for all mortgage loan applicants and communities.