Appraisal Modernization Act

HR 5975, the Appraisal Modernization Act, creates a formal process for home buyers to challenge mortgage appraisals they believe are flawed or discriminatory. It requires lenders to review consumer requests for reconsideration within 60 days, providing clear procedures for submitting evidence and requiring lenders to order a new appraisal at their expense if the original report has material flaws. The bill also mandates a 240-day feasibility study by the government to assess creating a public database consolidating appraisal data from major housing agencies like FHA and VA, aiming to improve transparency in home valuation practices. This legislation directly affects homebuyers, lenders, and appraisers by establishing new accountability standards for appraisal quality and access to valuation data.