,,ii #aaith ,,congress #ast ,session ,s4 #bcbb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #ag1 #bjbe,mr4 ,warnock 7for himself1 ,ms4 ,alsobrooks1 ,ms4 ,blunt ,rochester1 ,mr4 ,kim1 ,mr4 ,booker1 and ,ms4 ,warren7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to amend the ,federal ,housing ,enterprises ,safety and ,soundness ,act of #aiib 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 purposes4 #a4 ,short title ,this ,act may be cited as the ,appraisal ,modernization ,act4 #b4 ,public appraisal database 7a7 ,in general ,the ,federal ,housing ,enterprises ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #deja et seq47 is amended by inserting after section #acac;,b 7#ab ,u4,s4,c4 #deac;b7 the following3 #acac;,c4 ,public appraisal database 7a7 ,purpose ,the purpose of this section is 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 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 7b7 ,definitions ,in this section3 7#a7 ,application ,the term application means the submission of a consumer's financial information for the purposes of obtaining an extension of credit4 7#b7 ,dwelling ,the term dwelling-- 7,a7 means a #a-to-#d unit residential structure1 whether or not attached to real property2 and 7,b7 includes a detached home1 an individual condominium or cooperative unit1 and a manufactured home or other factory-built home4 7#c7 ,financial institution ,the term financial institution means any partnership1 company1 corporation1 association 7incorporated or unincorporated71 trust1 estate1 cooperative organization1 or other entity that engages in financial activity4 7#d7 ,mortgage loan ,the term mortgage loan means any extension of credit that is secured by a lien on a dwelling4 7c7 ,agency ,appraisal ,data ,sharing 7#a7 ,legacy appraisal data ,not later than #ahj days after the date of enactment of this section1 the ,federal ,national ,mortgage ,association1 the ,federal ,home ,loan ,mortgage ,corporation1 the ,federal ,housing ,administration1 the ,department of ,agriculture1 and the ,department of ,veterans ,affairs shall provide to the ,agency-- 7,a7 the appraisal data collected in connection with mortgage loan applications and mortgage loans that financial institutions submitted to the ,federal ,national ,mortgage ,association1 the ,federal ,home ,loan ,mortgage ,corporation1 the ,federal ,housing ,administration1 the ,department of ,agriculture1 and the ,department of ,veterans ,affairs1 as applicable1 during the period beginning on ,january #a1 #bjag1 and ending on the date of enactment of this section2 and 7,b7 the corresponding census tract of the subject property1 agency loan identifier1 the ,universal ,loan ,identifier required by the ,home ,mortgage ,disclosure ,act of #aige 7#ab ,u4,s4,c4 #bhja et seq471 the mortgage loan purpose1 whether the property is owner occupied1 the acquiring agency1 and the race and ethnicity of the borrower as required by that ,act4 7#b7 ,modernized appraisal data ,not later than #a year after the date of enactment of this section1 and on a quarterly basis thereafter1 the ,federal ,national ,mortgage ,association1 the ,federal ,home ,loan ,mortgage ,corporation1 the ,federal ,housing ,administration1 the ,department of ,agriculture1 and the ,department of ,veterans ,affairs shall provide to the ,agency-- 7,a7 the appraisal data collected in connection with mortgage loan applications and mortgage loans that financial institutions submitted in the previous quarter to the ,federal ,national ,mortgage ,association1 the ,federal ,home ,loan ,mortgage ,corporation1 the ,federal ,housing ,administration1 the ,department of ,agriculture1 and the ,department of ,veterans ,affairs1 as applicable2 and 7,b7 the corresponding census tract of the subject property1 agency loan identifier1 the ,universal ,loan ,identifier required by the ,home ,mortgage ,disclosure ,act of #aige 7#ab ,u4,s4,c4 #bhja et seq471 the mortgage loan purpose1 whether the property is owner occupied1 the acquiring agency1 and the race and ethnicity of the borrower as required by that ,act4 7d7 ,public searchable database 7#a7 ,legacy appraisal database ,not later than #b years after the date of enactment of this section1 the ,director1 in consultation with the ,secretary of ,housing and ,urban ,development1 the ,secretary of ,agriculture1 and the ,secretary of ,veterans ,affairs1 shall make publicly available online a searchable and downloadable appraisal-level public use file of the data shared pursuant to subsection 7c77#a74 7#b7 ,modernized appraisal database ,not later than #b years after the date of enactment of this section1 and on a quarterly basis thereafter1 the ,director1 in consultation with the ,secretary of ,housing and ,urban ,development1 the ,secretary of ,agriculture1 and the ,secretary of ,veterans ,affairs1 shall make publicly available online a searchable and downloadable appraisal-level public use file of the data shared pursuant to subsection 7c77#b74 7e7 ,form and manner of valuation data 7#a7 ,in general ,any appraisal data required to be disclosed under subsection 7d7 shall be itemized at the appraisal level to clearly and conspicuously disclose-- 7,a7 the assignment data1 including the assignment reason1 property valuation method1 client or lender name1 appraisal management company name1 appraiser company name1 appraiser credential level1 appraiser identification number1 and ,state1 exterior scope of inspection1 interior scope of inspection1 and the inspection date2 7,b7 the subject property data1 including the physical address1 zip code1 county1 ,state1 neighborhood name1 attachment type1 number of units excluding accessory dwelling units1 number of accessory dwelling units1 special tax assessments1 whether the subject property is a planned unit development1 condominium1 cooperative1 property on ,native ,american lands1 subject site owned in common1 homeowner responsible for all exterior maintenance of dwelling1 or new construction1 the property rights appraised1 whether all rights are included in the appraisal1 and the legal description2 7,c7 the market data1 including the market area boundary1 search criteria description1 number of active listings and their median days on market1 lowest list price1 median list price1 and highest list price1 the number of pending sales1 the number of sales in the past #bd months and their lowest sale price1 median sale price1 and highest sale price1 whether there is distressed market competition1 the price trend source1 the demand and supply trend1 the marketing time1 and the market commentary2 7,d7 the project information1 including the project information data source1 the monthly amount of mandatory fees1 the common amenities and services included1 the utilities included1 whether the developer or sponsor is in control1 any known legal actions1 unit special assessments1 and unit tax abatements or exemptions2 7,e7 the subject listing information1 including the subject listing identification number1 the start date1 end date1 days on market1 starting list price1 and current or final list price2 7,f7 the sales contract data1 including whether there is a sales contract1 whether the contract was analyzed1 and whether the transaction appears to be an arms length transaction1 the contract price1 the contract data1 transfer terms1 any personal property conveyed1 any known sales concessions1 total sales concessions and whether such concessions are typical for the market1 and sales contract analysis2 7,g7 for the subject property and each comparable property relied on for the opinion of value1 as applicable-- 7i7 the general data1 including the property address1 data source1 proximity to the subject1 list price1 listing status1 contract price or sale price1 sales concessions1 contract date1 sale data1 days on market1 whether attached or detached1 and property rights appraised2 7ii7 the site data1 including the site size1 neighborhood name1 topography1 site influence or location1 site view1 and site range2 7iii7 the dwelling data1 including the year built1 dwelling style1 heating1 and cooling2 7iv7 the energy efficient and green features1 including the efficiency rating2 7v7 the unit data1 including the number of bedrooms1 number of full baths1 number of half baths1 finished area above grade1 finished area below grade1 unfinished area below grade1 and below grade exterior access2 7vi7 the exterior quality and condition ratings data1 including the quality rating1 exterior walls and trim1 roof1 and condition rating2 7vii7 the interior quality and condition ratings data1 including the quality rating1 condition rating1 kitchen1 and overall flooring2 7viii7 the overall quality and condition ratings data1 including the quality rating and the condition rating2 7ix7 the property amenities data1 including the outdoor living1 water features1 and miscellaneous2 7x7 the vehicle storage data1 including type1 spaces1 and detail2 and 7xi7 for each comparable relied on for the opinion of value1 any adjustments related to each of the above data fields2 7,h7 the summary data for the comparable properties relied on for the opinion of value1 including the list price1 sale price1 net adjustment total1 price per finished area above grade1 adjusted price1 and comparable weight2 7,i7 the reconciliation data1 including the approaches to value1 the contract price1 opinion of market value1 market value condition1 reasonable exposure time1 effective date of appraisal1 and final value condition statement2 7,j7 the corresponding census tract of the subject property1 agency loan identifier1 the ,universal ,loan ,identifier required by the ,home ,mortgage ,disclosure ,act of #aige 7#ab ,u4,s4,c4 #bhja et seq471 the mortgage loan purpose1 whether the property is owner occupied1 the acquiring agency1 and the race and ethnicity of the borrower as required by that ,act1 based on the data provided by the ,federal ,national ,mortgage ,association1 the ,federal ,home ,loan ,mortgage ,corporation1 the ,federal ,housing ,administration1 the ,department of ,agriculture1 and the ,department of ,veterans ,affairs1 as applicable1 to the ,agency and added to the public appraisal database by the ,agency2 and 7,k7 such other information as the ,agency may require by regulation1 after notice and comment4 7#b7 ,discretion to modify publicly available data ,the ,agency may modify data collected under this section1 to be made publicly available1 if the ,agency determines by regulation1 after notice and comment1 that the release of the unmodified data creates risks to a mortgage loan applicant or mortgage loan borrower privacy interests that are not justified by the benefits of such release to the public in light of the statutory purposes4 7f7 ,access to the unmodified database ,for enforcement and other purposes1 the ,agency shall1 upon request1 provide access to all information collected for the database pursuant to this section1 in unredacted form1 to any ,executive agency1 as defined in section #aje of title #e1 ,united ,states ,code1 the ,board of ,governors of the ,federal ,reserve ,system1 the ,office of the ,comptroller of the ,currency1 the ,federal ,deposit ,insurance ,corporation1 the ,national ,credit ,union ,administration1 the ,appraisal ,subcommittee of the ,federal ,financial ,institutions ,examination ,council1 the ,bureau of ,consumer ,financial ,protection1 and any ,state attorney general1 ,state appraiser regulator1 or other ,state agency with responsibility for laws related to appraisals4 7g7 ,rule of construction ,nothing in this section shall be construed to encourage unsafe or unsound lending1 appraisal1 or valuation practices4 7h7 ,rules and interpretive guidelines ,not later than #a year after the date of enactment of this section1 the ,agency shall issue a final rule after notice and comment and issue such guidance as may be necessary to carry out and enforce this section4 4 #c4 ,reconsideration of value 7a7 ,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 statements 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 one 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 seven-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 ,section #abi;,e7c7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afci;e7c774 ,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 7b7 ,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