FHA loosens appraiser rules, shifting oversight to states with uneven standards.

What it does

This bill allows state-licensed appraisers (not just federally certified ones) to conduct appraisals for FHA-insured mortgages, provided they meet existing competency standards and complete FHA-approved training. It also expands the national appraiser registry to include state-credentialed trainees, allows certified appraisers to use trainee assistants, creates grants for appraiser workforce development, and gives the Appraisal Subcommittee authority to adjust registry fees.

Why we flagged it

The bill's core mechanism is to relax federal appraiser credentialing requirements by allowing state-licensed (rather than federally certified) appraisers to work on FHA mortgages, contingent on state-level training. This is a deregulatory move that shifts oversight from federal to state standards.

• Section 5 adds a new grant authority for state agencies and nonprofits to fund appraiser training and recruitment—substantively unrelated to the core licensing amendment.
• Section 6 expands the Appraisal Subcommittee's jurisdiction to include VA, USDA Rural Housing, and HUD—broadens regulatory reach beyond FHA mortgage appraisals.

What the text implies

• State licensing standards for appraisers vary significantly; allowing state-licensed (vs. federally certified) appraisers may create a two-tier system where borrowers in states with weaker standards face higher appraisal error risk.
• Trainee-assisted appraisals shift liability to the supervising certified appraiser but do not require trainee disclosure to borrowers or lenders, potentially obscuring quality risk in loan files.
• The 240-day implementation window is tight; HUD may issue guidance that effectively grandfathers existing appraisers, limiting the bill's practical impact on supply.
• Appraisal Subcommittee fee-adjustment authority (Section 3) is vague and subject only to Council approval, creating potential for cost-shifting to appraisers without explicit congressional oversight.
• Grants to nonprofits and higher-education institutions (Section 5) may benefit workforce intermediaries more than borrowers if training does not translate to increased appraiser supply in underserved markets.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

The bill may lower mortgage costs and increase appraiser supply by broadening who can conduct FHA appraisals, benefiting borrowers and first-time homebuyers. However, it risks quality degradation if state licensing standards vary widely, and trainee-assisted appraisals (with the certified appraiser bearing liability) may create accountability gaps that harm consumers if errors occur.

Who stands to gain

• state appraiser licensing agencies
• nonprofit workforce-training organizations
• higher-education institutions receiving grants
• appraisal management companies (fee adjustment authority)
• real estate appraisers (expanded pool of eligible practitioners)

Named in the bill

Federal Housing Administration (FHA), Department of Housing and Urban Development (HUD), Appraisal Subcommittee, Federal Financial Institutions Examination Council (FFIEC), Uniform Standards of Professional Appraisal Practice (USPAP), Appraiser Qualification Board, Department of Veterans Affairs, Rural Housing Service (USDA), state appraiser certifying and licensing agencies

Where it stands

2 cosponsors: 2 Democrats.

• Nov 12, 2025 — Introduced · Congress.gov: “Introduced in House”
• Nov 12, 2025 — Referred to House Committee on Financial Services · Congress.gov: “Referred to the House Committee on Financial Services”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

3 lobbying clients named this bill on 4 disclosure filings across 2 quarters, Dec 2025 to Jun 2026. Those filings disclosed $1,180,183 in lobbying spend. A filing names 80 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 61% of bills with at least one filing.

Byron Donalds, the sponsor, reported $66,946 in PAC receipts in the 2026 cycle.

• National Association of Mutual Insurance Companies — $1,005,758 on 2 filings
• College of American Pathologists — $154,425 on 1 filing
• Real Estate Valuation Advocacy Association (revaa) — $20,000 on 1 filing

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.