S. 2322 — Appraisal Modernization Act

This section establishes a public appraisal database (new section 1313C of the Federal Housing Enterprises Safety and Soundness Act of 1992) to provide residential real estate appraisal data associated with 1-to-4 family dwellings from mortgages acquired by Fannie Mae, Freddie Mac, FHA, USDA, and VA, including associated census tract, loan identifiers, purpose, owner-occupancy status, acquiring agency, and borrower race and ethnicity per the Home Mortgage Disclosure Act. Requires those entities to submit to FHFA (1) legacy appraisal data from January 1, 2017, to enactment within 180 days of enactment; and (2) quarterly appraisal data beginning one year after enactment. Directs the FHFA Director, in consultation with the Secretaries of Housing and Urban Development, Agriculture, and Veterans Affairs, to publish the data online as searchable, downloadable appraisal-level files within two years of enactment for legacy data and quarterly thereafter, itemized to disclose assignment details (e.g., valuation method, appraiser credentials and ID, inspection scope), subject property data (e.g., address, units, new construction status), and market data (e.g., comparable listings and sales).

This section establishes a consumer right to request reconsideration of value or a subsequent appraisal for mortgage transactions secured by the consumer's principal dwelling, if the consumer believes the initial appraisal is unsupported (i.e., lacks relevant evidence and logic), deficient due to an unacceptable appraisal practice (e.g., inaccurate data, unverified comparables, inappropriate adjustments, or references to crime statistics), or discriminatory. (As background, these requirements amend the appraisal independence provisions of the Truth in Lending Act, which prohibit lenders, brokers, and others from coercing or influencing appraisers to achieve targeted property values.) The section requires creditors to (1) conduct their own appraisal review prior to delivering the report to the consumer; (2) maintain policies allowing one consumer request prior to loan closing or within 60 calendar days of credit denial; (3) provide written disclosures at application and appraisal delivery, including a standardized request form specifying borrower details, property information, reasons for challenge, and up to five alternative comparables; (4) seek clarification if the request is unclear; and (5) use a standardized format to forward the request to the appraiser, including turn-time expectations and instructions for a revised report. If material deficiencies, unsupported practices, or unacceptable appraisal practices are identified and not corrected, the creditor must—at the consumer's request—order a subsequent appraisal at the creditor's expense and refer the original report to the relevant appraisal licensing agency or board. (Thus, for suspected discrimination, the creditor must order a subsequent appraisal at its own expense and forward the report.) The section also redesignates existing subsections (j) and (k) as (k) and (l).