Appraisal Modernization Act
Summary
The Appraisal Modernization Act aims to amend the Federal Housing Enterprises Safety and Soundness Act of 1992. It seeks to ensure efficiency and consistency in the housing market for all mortgage loan applicants by establishing a public appraisal database. The Act also provides consumers with the right to request reconsideration of property value appraisals.
Expected Effects
This act will create a publicly accessible database of residential real estate appraisals. It will also establish a process for consumers to challenge appraisals they believe are inaccurate or discriminatory. This could lead to greater transparency and fairness in the appraisal process.
Potential Benefits
- Increased transparency in the appraisal process through a public database.
- Enhanced consumer protection by providing a mechanism to challenge potentially flawed appraisals.
- Potential reduction in discriminatory appraisal practices.
- Improved data availability for researchers and policymakers to analyze housing market trends.
- Standardization of appraisal review processes for creditors.
Potential Disadvantages
- Potential costs associated with establishing and maintaining the public appraisal database.
- Risk of data breaches or misuse of publicly available appraisal data.
- Increased administrative burden for financial institutions and appraisers.
- Possible delays in the mortgage approval process due to reconsideration requests.
- Concerns about appraiser independence if undue pressure is applied during the reconsideration process.
Constitutional Alignment
The Appraisal Modernization Act appears to align with the Constitution's general welfare clause (Preamble). By promoting fair housing practices and providing transparency in the appraisal process, the Act aims to improve the overall well-being of citizens. The Act does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).