Energy-efficient homes get fair appraisals—if you can afford the audit

What it does

This bill requires federal mortgage agencies (FHA, Fannie Mae, Freddie Mac, USDA, VA) to let borrowers provide energy efficiency reports when applying for home loans, and to ensure appraisers consider this information when valuing properties. Borrowers get the right to request energy reports at no cost, and lenders must disclose that energy data may affect appraisal value—either positively or negatively. Appraisers must complete 7+ hours of training on energy considerations. The bill aims to help energy-efficient homes get fair market valuations that reflect their lower operating costs.

Why we flagged it

The bill's core mechanism is a disclosure and appraisal-consideration mandate: it requires lenders to inform borrowers of their right to provide energy reports and mandates that appraisers factor energy efficiency into property valuations. This is a transparency and valuation-accuracy measure, not a subsidy or deregulation.

What the text implies

• Appraisers must complete mandatory 7-hour training on energy considerations by March 1, 2026, creating a compliance cost and potential bottleneck in appraisal capacity during the transition period.
• The bill does not mandate that energy reports increase property values—only that appraisers 'take into consideration' energy data. Appraisers retain discretion on weight, so energy-efficient homes may still receive lower valuations if the appraiser determines the market does not yet price efficiency highly.
• Creditors' underwriting and origination systems must be updated within 2 years to accommodate energy-report-informed appraisals, imposing IT infrastructure costs on lenders that may be passed to borrowers through higher fees.
• The advisory committee includes appraisers, builders, and energy organizations, but the bill does not specify how conflicts of interest (e.g., energy raters or builders with financial stakes in higher valuations) will be managed.
• Energy reports are voluntary for borrowers; those without reports receive no benefit, potentially widening the appraisal advantage for homeowners who can afford or access energy audits.

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

Who it affects

Homeowners with energy-efficient properties gain transparency about their right to provide energy data and potential for appraisals that reflect the market value of efficiency improvements, which can improve loan approval odds and terms. The bill imposes no costs on borrowers (energy reports are provided at no cost) and creates no new restrictions on consumer rights or remedies.

Who stands to gain

• energy auditing and HERS-certification firms
• home builders and architects (whose energy-efficient designs may command higher appraisals)
• renewable energy installers and solar companies
• appraisal software and origination system vendors (system upgrades required by 2027)

Named in the bill

Federal Housing Administration (FHA), Federal Housing Finance Agency (FHFA), Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac), Government National Mortgage Association (Ginnie Mae), Rural Housing Service (USDA), Department of Veterans Affairs (VA), Residential Energy Service Network (RESNET), Home Energy Rating System (HERS), Department of Energy, Appraiser Qualifications Board, Appraisal Foundation

Where it stands

• Mar 27, 2025 — Introduced · Congress.gov: “Introduced in Senate”
• Mar 27, 2025 — Referred to Senate Committee on Banking, Housing, and Urban Affairs · Congress.gov: “Read twice and referred to the Committee on Banking, Housing, and Urban Affairs”

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