Appraisal Industry Improvement Act

The Appraisal Industry Improvement Act aims to enhance the quality and efficiency of real estate appraisals, particularly for mortgages insured by the Federal Housing Administration. It mandates that appraisers conducting FHA-insured mortgage appraisals must be state-certified or licensed and adhere to the Uniform Standards of Professional Appraisal Practice (USPAP) competency rule. Additionally, these appraisers will be required to complete verifiable education specifically on FHA appraisal requirements, which can be provided by the FHA itself or an approved third party. Existing FHA-approved appraisers are granted a grace period before these new educational requirements apply. The bill also addresses appraiser workforce development by integrating State credentialed trainee appraisers into the national registry and allowing certified appraisers to utilize their assistance, while retaining liability for the final work. To further support the industry, it authorizes the Appraisal Subcommittee to provide grants for education and training activities , including scholarships and career pipeline development, to address workforce needs. Finally, the legislation expands the membership of the Appraisal Subcommittee to include representatives from the Department of Veterans Affairs, the Rural Housing Service, and the Department of Housing and Urban Development, and permits the Subcommittee to adjust annual registry fees for appraisal management companies.