GREEN Appraisals Act of 2025

The GREEN Appraisals Act of 2025 requires lenders to inform borrowers about energy efficiency reports for home appraisals and mandates that appraisers consider these reports when valuing properties. It directly affects homebuyers, appraisers, and lenders handling covered loans (like most mortgages insured by FHA, VA, or Fannie Mae). Key provisions include requiring appraisers to factor in energy efficiency features, renewable energy systems, and estimated savings - such as lower utility costs - into property valuations, while ensuring these reports cannot be used to deny a loan. The law also sets standards for energy reports (e.g., using HERS ratings) and requires appraisers to complete specific training on evaluating energy data. This policy change aims to make energy efficiency a standard part of home value assessments, potentially influencing both home prices and financing decisions.