,i #aaith ,,congress #ast ,session ,h4 ,r4 #eige ,,in ,,the ,,house ,,of ,,representatives ,november #g1 #bjbe,ms4 ,pressley introduced the following bill2 which was referred to the ,committee on ,financial ,services1 and in addition to the ,committee on ,rules1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,truth in ,lending ,act to require that financial institutions1 appraisal management companies1 appraisers1 and other valuation professionals are serving the housing market in a manner that is efficient and consistent for all mortgage loan applicants1 borrowers1 and communities1 and for other purposes2 to study the feasibility of creating a national public appraisal database4 #a4 ,short title ,this ,act may be cited as the ,appraisal ,modernization ,act4 #b4 ,reconsideration of value 7#a7 ,in general ,section #abi;,e of the ,truth ,in ,lending ,act 7#ae ,u4,s4,c4 #afci;e7 is amended-- 7,a7 by redesignating subsections 7j7 and 7k7 as subsections 7k7 and 7l71 respectively2 and 7,b7 by inserting after subsection 7i7 the following3 7j7 ,consumer right to reconsideration of value or subsequent appraisal 7#a7 ,definitions ,in this section3 7,a7 ,unacceptable appraisal practice ,the term unacceptable appraisal practice means an appraisal report that-- 7i7 uses unsupported or subjective terms to assess or rate the property without providing a foundation for analysis and contextual information2 7ii7 uses inaccurate or incomplete data about the subject property1 the neighborhood1 the market area1 or any comparable property2 7iii7 includes references1 statements1 or comparisons about crime rates or crime statistics1 whether objective or subjective2 7iv7 relies in the appraisal analysis on comparable properties that were not personally inspected by the appraiser when required by the appraisal's scope of work2 7v7 relies in the appraisal analysis on inappropriate comparable properties2 7vi7 fails to use comparable properties that are more similar1 or nearer1 to the subject property without adequate explanation2 7vii7 uses comparable property data provided by any interested party to the transaction without verification by a disinterested party2 7viii7 uses inappropriate adjustments for differences between the subject property and the comparable properties that do not reflect the market's reaction to such differences2 or 7ix7 fails to make proper adjustments1 including time adjustments for differences between the subject property and the comparable properties when necessary4 7,b7 ,unsupported ,the term unsupported means1 with respect to an appraisal report or an appraiser's opinion of value1 that the appraisal report or the opinion of value is not supported by relevant evidence and logic4 7#b7 ,review ,in connection with a consumer credit transaction secured by a consumer's principal dwelling1 a creditor shall have a review and resolution procedure for a consumer-initiated reconsideration of value or subsequent appraisal that complies with the following requirements3 7,a7 ,the creditor shall complete its own appraisal review before delivering the appraisal to the consumer4 7,b7 ,the creditor shall have policies and procedures that provide the consumer with a process to submit #a request for a reconsideration of value and subsequent appraisal prior to the loan closing or within #fj calendar days of denial of a credit application if the consumer believes the appraisal report may be unsupported1 may be deficient due to an unacceptable appraisal practice1 or may reflect discrimination4 7,c7 ,at the time of application and upon delivery of the appraisal report to the consumer1 the creditor shall provide a written disclosure to the consumer describing the process for requesting a reconsideration of value or subsequent appraisal1 which written disclosure shall include a standardized format for the consumer to submit the request for a reconsideration of value1 including-- 7i7 the name of the borrower2 7ii7 the property address2 7iii7 the effective date of the appraisal2 7iv7 the appraiser's name2 7v7 the date of the request2 7vi7 a description of why the consumer believes the appraisal report may be unsupported1 may be deficient due to an unacceptable appraisal practice1 or may reflect discrimination2 7vii7 any additional information1 data1 including not more than #e alternative comparable properties and the related data sources that the consumer would like the appraiser to consider2 and 7viii7 an explanation of why the new information1 data1 or comparable properties support the reconsideration of value4 7,d7 ,the creditor shall obtain the necessary information from the consumer if the consumer's request for reconsideration of value or subsequent appraisal is unclear or requires more information4 7,e7 ,the creditor shall have a standardized format to communicate the reconsideration of value to the appraiser1 which format shall include-- 7i7 the name of the borrower2 7ii7 the property address2 7iii7 the effective date of the appraisal2 7iv7 the appraiser's name2 7v7 the date of the request2 7vi7 a description of any area of the appraisal report that may be unsupported1 may be deficient due to an unacceptable appraisal practice1 or may reflect discrimination2 7vii7 any additional information1 data1 including not more than #e alternative comparable properties and the related data sources that the consumer would like the appraiser to consider2 7viii7 an explanation of why the new information1 data1 or comparable properties support the reconsideration of value2 7ix7 a definition of turn-time expectations for the appraiser to communicate the reconsideration of value results back to the creditor2 7x7 instructions for delivering the reconsideration of value response as part of a revised appraisal report that includes commentary on conclusions regardless of the outcome2 and 7xi7 a reference for appraisers on how to correct minor appraisal issues or non-material errors not related to the reconsideration of value process4 7#c7 ,subsequent appraisal and referral 7,a7 ,in general ,if the creditor identifies material deficiencies in the appraisal report that are not corrected or addressed by the appraiser upon request of the creditor1 including through a consumer-initiated reconsideration of value1 or if there is evidence of unsupported or unacceptable appraisal practices1 the creditor shall-- 7i7 at the request of the consumer1 order a subsequent appraisal at the creditor's own expense2 and 7ii7 forward the appraisal report and the creditor's summary of findings to the appropriate appraisal licensing agency or regulatory board4 7,b7 ,discrimination ,if the creditor has reason to believe that an appraisal report reflects discrimination1 the creditor shall-- 7i7 order a subsequent appraisal1 at the creditor's own expense2 7ii7 forward the appraisal report and the creditor's summary of findings to the appropriate local1 ,state1 or ,federal enforcement agency2 and 7iii7 upon a final determination of discrimination by the appropriate local1 ,state1 or ,federal enforcement agency1 receive a reimbursement from the appraiser covering the cost of the subsequent appraisal ordered by the creditor4 7,c7 ,definition 7i7 ,in general ,except as provided in clause 7ii71 in this paragraph1 the term reason to believe means that the creditor has reviewed the applicable law and available evidence and determined that a potential violation of ,federal or state antidiscrimination law exists4 ,the available evidence may include the appraisal report1 loan files1 written communications1 credible observations by persons with direct knowledge1 statistical analysis1 and the appraiser's response to the request for a reconsideration of value4 7ii7 ,exception ,the term reason to believe does not mean that there is a final legal determination of discrimination4 7#d7 ,document retention ,the creditor shall retain all documentation and written communications related to the request for reconsideration of value or subsequent appraisal in the loan file during the #g-year period beginning on the date on which the consumer submitted the credit application4 7#e7 ,rule of construction ,this subsection is consistent with the exceptions to the appraiser independence requirements found in subsection 7c74 ,nothing in this subsection shall be construed to require a creditor to submit a reconsideration of value to the original appraiser before ordering a subsequent appraisal from a subsequent appraiser4 4 7#b7 ,rules and interpretative guidelines ,section #abi;,e7g7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afci;e7g77 is amended-- 7,a7 in paragraph 7#a71 by striking paragraph 7#b71 the ,board and inserting paragraphs 7#b7 and 7#c71 the ,bureau2 and 7,b7 by adding at the end the following3 7#c7 ,final rule ,not later than #a year after the date of enactment of this paragraph1 the ,federal ,housing ,finance ,agency shall issue a final rule after notice and comment and issue such guidance as may be necessary to carry out and enforce subsection 7j74 4 #c4 ,public appraisal database 7#a7 ,covered agencies defined ,the term covered agencies means-- 7,a7 the ,federal ,housing ,finance ,agency1 on behalf of the ,federal ,national ,mortgage ,association and the ,federal ,home ,loan ,mortgage ,corporation2 7,b7 the ,department of ,housing and ,urban ,development1 including the ,federal ,housing ,administration2 7,c7 the ,department of ,agriculture2 and 7,d7 the ,department of ,veterans ,affairs4 7#b7 ,feasibility report ,no later than #bdj days after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall issue a public report to ,congress assessing the feasibility of creating a publicly available appraisal database that consists of a searchable and downloadable appraisal level public use file that consolidates appraisal data held or aggregated by covered agencies1 which shall include-- 7,a7 the costs and benefits associated with establishing and maintaining the public database2 7,b7 the benefits and risks associated with either the ,federal ,housing ,finance ,agency or the ,bureau of ,consumer ,financial ,protection being responsible for the public database and whether there is another ,federal agency best suited for implementing and administering such database2 7,c7 any safety and soundness1 antitrust1 or consumer privacy-related risks associated with making certain appraisal data factors publicly available1 including whether-- 7i7 there are any existing legal requirements1 including under the ,home ,mortgage ,disclosure ,act of #aigd 7#ab ,u4,s4,c4 #bhja et seq47 and section #eeb of title #e1 ,united ,states ,code 7commonly known as the ,freedom of ,information ,act71 or additional actions ,federal agencies could take to mitigate such risks1 such as modifying or aggregating data1 or eliminating personally identifiable information2 and 7ii7 there are any data factors that1 if made public1 may violate conduct1 ethics1 or other professional standards as they relate to appraisals and appraisal or valuation professionals2 7,d7 the feasibility of consolidating or matching appraisal data held by covered agencies with corresponding data that is required and made public under the ,home ,mortgage ,disclosure ,act of #aigd 7#ab ,u4,s4,c4 #bhja et seq472 7,e7 whether the publication of any appraisal data factors may pose unfair business advantages within the valuation industry2 7,f7 the feasibility of including all valuation data held by covered agencies1 including data produced by automated valuation models2 7,g7 the feasibility and benefits of making the full appraisal dataset1 including any modified fields1 available to-- 7i7 ,federal agencies1 including for purposes related to enforcement and supervision responsibilities2 7ii7 relevant ,state licensing1 supervision1 and enforcement agencies and ,state attorneys general2 7iii7 approved researchers1 including academics and nonprofit organizations that1 in connection with their mission1 work to ensure the fairness and consistency of home valuations1 including appraisals2 and 7iv7 any other entities identified by the ,comptroller ,general as having a compelling use for disaggregated data2 7,h7 what appraisal data is already available in the public domain2 and 7,i7 the feasibility of incorporating legacy data held by covered agencies during the period beginning on ,january #a1 #bjag and ending on the date of enactment of this ,act1 and whether there are specific data points not easily consolidated or matched1 as described in subparagraph 7,d71 with more recent data4 7#c7 ,purpose ,the database described in paragraph 7#b7 shall be used to provide the public1 the ,federal ,government1 and ,state governments with residential real estate appraisal data to help determine whether financial institutions1 appraisal management companies1 appraisers1 valuation technologies1 such as automated valuation models1 and other valuation professionals are serving the housing market in a manner that is efficient and consistent for all mortgage loan applicants1 borrowers1 and communities4 7#d7 ,consultation ,as part of the information used in the report required under paragraph 7#b71 the ,comptroller ,general of the ,united ,states shall conduct interviews with-- 7,a7 relevant ,federal agencies2 7,b7 relevant ,state licensing1 supervision1 and enforcement agencies and ,state attorneys general2 7,c7 appraisers and other home valuation industry professionals2 7,d7 mortgage lending institutions2 7,e7 fair housing and fair lending experts2 and 7,f7 any other relevant stakeholders as determined by the ,comptroller ,general4 7#e7 ,hearing ,upon the completion of the report under paragraph 7#b71 the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives shall each hold a hearing on the findings of the report and the feasibility of establishing a public appraisal-level appraisal database4