Appraisal Modernization Act

Increased Transparency through Data Access: The creation of a public, searchable, and downloadable appraisal-level database provides the public, the Federal Government, and State governments with residential real estate appraisal data (Section 2(a) and 2(d)).

Empowerment of Borrowers to Challenge Appraisals: Consumers gain the right to request a reconsideration of value or a subsequent appraisal if they believe an appraisal is unsupported, deficient due to unacceptable practices, or reflects discrimination (Section 3(a)(2)(B)).

Standardized Dispute Resolution: Creditors must provide written disclosures describing the reconsideration process and use a standardized format for submitting requests, which ensures consumers know how to navigate the process (Section 3(a)(2)(C)).

Protection Against Unacceptable Practices: The bill defines "unacceptable appraisal practice"—such as using inaccurate data, crime statistics, or inappropriate comparable properties—giving consumers a basis to challenge poor-quality reports (Section 3(a)(1)(A)).

Financial Redress for Discrimination: If a creditor has reason to believe an appraisal reflects discrimination, they must order a subsequent appraisal at their own expense, and the appraiser must reimburse the creditor upon a final determination of discrimination (Section 3(a)(3)(B)).

Privacy Risks: The release of itemized appraisal data, including physical addresses and borrower race/ethnicity, could create risks to a mortgage loan applicant's or borrower's privacy interests (Section 2(e)(1) and 2(e)(2)).

Increased Costs for Creditors: Creditors are required to pay for subsequent appraisals at their own expense if material deficiencies or evidence of unacceptable practices are identified (Section 3(a)(3)(A)).

Potential Financial Burden on Appraisers: Appraisers may be required to reimburse creditors for the cost of subsequent appraisals if a final determination of discrimination is made (Section 3(a)(3)(B)(ii)).