S.Amdt. 4324

SA 4324. Mr. WARNOCK (for himself, Ms. Blunt Rochester, and Mr.
Blumenthal) submitted an amendment intended to be proposed by him to
the bill H.R. 6644, a bill to increase the supply of housing in
America, and for other purposes; which was ordered to lie on the table;
as follows:

At the appropriate place, insert the following:

SEC. __. PUBLIC APPRAISAL DATABASE AND RECONSIDERATION OF
VALUE.

(a) Public Appraisal Database.--The Federal Housing
Enterprises Safety and Soundness Act of 1992 (12 U.S.C. 4501
et seq.) is amended by inserting after section 1313B (12
U.S.C. 4513b) the following:

``SEC. 1313C. PUBLIC APPRAISAL DATABASE.

``(a) Purpose.--The purpose of this section is to provide
the public, the Federal Government, and State governments
with residential real estate appraisal data to help determine
whether financial institutions, appraisal management
companies, appraisers, and other valuation professionals are
serving the housing market in a manner that is efficient and
consistent for all mortgage loan applicants, borrowers, and
communities.
``(b) Definitions.--In this section:
``(1) Application.--The term `application' means the
submission of a consumer's financial information for the
purposes of obtaining an extension of credit.
``(2) Dwelling.--The term `dwelling'--
``(A) means a 1-to-4 unit residential structure, whether or
not attached to real property; and
``(B) includes a detached home, an individual condominium
or cooperative unit, and a manufactured home or other
factory-built home.
``(3) Financial institution.--The term `financial
institution' means any partnership, company, corporation,
association (incorporated or unincorporated), trust, estate,
cooperative organization, or other entity that engages in
financial activity.
``(4) Mortgage loan.--The term `mortgage loan' means any
extension of credit that is secured by a lien on a dwelling.
``(c) Agency Appraisal Data Sharing.--
``(1) Legacy appraisal data.--Not later than 180 days after
the date of enactment of this section, the Federal National
Mortgage Association, the Federal Home Loan Mortgage
Corporation, the Federal Housing Administration, the
Department of Agriculture, and the Department of Veterans
Affairs shall provide to the Agency--
``(A) the appraisal data collected in connection with
mortgage loan applications and mortgage loans that financial
institutions submitted to the Federal National Mortgage
Association, the Federal Home Loan Mortgage Corporation, the
Federal Housing Administration, the Department of
Agriculture, and the Department of Veterans Affairs, as
applicable, during the period beginning on January 1, 2017,
and ending on the date of enactment of this section; and
``(B) the corresponding census tract of the subject
property, agency loan identifier, the Universal Loan
Identifier required by the Home Mortgage Disclosure Act of
1975 (12 U.S.C. 2801 et seq.), the mortgage loan purpose,
whether the property is owner occupied, the acquiring agency,
and the race and ethnicity of the borrower as required by
that Act.
``(2) Modernized appraisal data.--Not later than 1 year
after the date of enactment of this section, and on a
quarterly basis thereafter, the Federal National Mortgage
Association, the Federal Home Loan Mortgage Corporation, the
Federal Housing Administration, the Department of
Agriculture, and the Department of Veterans Affairs shall
provide to the Agency--
``(A) the appraisal data collected in connection with
mortgage loan applications and mortgage loans that financial
institutions submitted in the previous quarter to the Federal
National Mortgage Association, the Federal Home Loan Mortgage
Corporation, the Federal Housing Administration, the
Department of Agriculture, and the Department of Veterans
Affairs, as applicable; and
``(B) the corresponding census tract of the subject
property, agency loan identifier, the Universal Loan
Identifier required by the Home Mortgage Disclosure Act of
1975 (12 U.S.C. 2801 et seq.), the mortgage loan purpose,
whether the property is owner occupied, the acquiring agency,
and the race and ethnicity of the borrower as required by
that Act.
``(d) Public Searchable Database.--
``(1) Legacy appraisal database.--Not later than 2 years
after the date of enactment of this section, the Director, in
consultation with the Secretary of Housing and Urban
Development, the Secretary of Agriculture, and the Secretary
of Veterans Affairs, shall make publicly available online a
searchable and downloadable appraisal-level public use file
of the data shared pursuant to subsection (c)(1).
``(2) Modernized appraisal database.--Not later than 2
years after the date of enactment of this section, and on a
quarterly basis thereafter, the Director, in consultation
with the Secretary of Housing and Urban Development, the
Secretary of Agriculture, and the Secretary of Veterans
Affairs, shall make publicly available online a searchable
and downloadable appraisal-level public use file of the data
shared pursuant to subsection (c)(2).
``(e) Form and Manner of Valuation Data.--
``(1) In general.--Any appraisal data required to be
disclosed under subsection (d) shall be itemized at the
appraisal level to clearly and conspicuously disclose--
``(A) the assignment data, including the assignment reason,
property valuation method, client or lender name, appraisal
management company name, appraiser company name, appraiser
credential level, appraiser identification number, and State,
exterior scope of inspection, interior scope of inspection,
and the inspection date;
``(B) the subject property data, including the physical
address, zip code, county, State, neighborhood name,
attachment type, number of units excluding accessory dwelling
units, number of accessory dwelling units, special tax
assessments, whether the subject property is a planned unit
development, condominium, cooperative, property on Native
American lands, subject site owned in common, homeowner
responsible for all exterior maintenance of dwelling, or new
construction, the property rights appraised, whether all
rights are included in the appraisal, and the legal
description;
``(C) the market data, including the market area boundary,
search criteria description, number of active listings and
their median days on market, lowest list price, median list
price, and highest list price, the number of pending sales,
the number of sales in the past 24 months and their lowest
sale price, median sale price, and highest sale price,
whether there is distressed market competition, the price
trend source, the demand and supply trend, the marketing
time, and the market commentary;
``(D) the project information, including the project
information data source, the monthly amount of mandatory
fees, the common amenities and services included, the
utilities included, whether the developer or sponsor is in
control, any known legal actions, unit special assessments,
and unit tax abatements or exemptions;
``(E) the subject listing information, including the
subject listing identification number, the start date, end
date, days on market, starting list price, and current or
final list price;
``(F) the sales contract data, including whether there is a
sales contract, whether the contract was analyzed, and
whether the transaction appears to be an arms length
transaction, the contract price, the contract data, transfer
terms, any personal property conveyed, any known sales
concessions, total sales concessions and whether such
concessions are typical for the market, and sales contract
analysis;
``(G) for the subject property and each comparable property
relied on for the opinion of value, as applicable--
``(i) the general data, including the property address,
data source, proximity to the subject, list price, listing
status, contract price or sale price, sales concessions,
contract date, sale data, days on market, whether attached or
detached, and property rights appraised;
``(ii) the site data, including the site size, neighborhood
name, topography, site influence or location, site view, and
site range;
``(iii) the dwelling data, including the year built,
dwelling style, heating, and cooling;

[[Page S844]]

``(iv) the energy efficient and green features, including
the efficiency rating;
``(v) the unit data, including the number of bedrooms,
number of full baths, number of half baths, finished area
above grade, finished area below grade, unfinished area below
grade, and below grade exterior access;
``(vi) the exterior quality and condition ratings data,
including the quality rating, exterior walls and trim, roof,
and condition rating;
``(vii) the interior quality and condition ratings data,
including the quality rating, condition rating, kitchen, and
overall flooring;
``(viii) the overall quality and condition ratings data,
including the quality rating and the condition rating;
``(ix) the property amenities data, including the outdoor
living, water features, and miscellaneous;
``(x) the vehicle storage data, including type, spaces, and
detail; and
``(xi) for each comparable relied on for the opinion of
value, any adjustments related to each of the above data
fields;
``(H) the summary data for the comparable properties relied
on for the opinion of value, including the list price, sale
price, net adjustment total, price per finished area above
grade, adjusted price, and comparable weight;
``(I) the reconciliation data, including the approaches to
value, the contract price, opinion of market value, market
value condition, reasonable exposure time, effective date of
appraisal, and final value condition statement;
``(J) the corresponding census tract of the subject
property, agency loan identifier, the Universal Loan
Identifier required by the Home Mortgage Disclosure Act of
1975 (12 U.S.C. 2801 et seq.), the mortgage loan purpose,
whether the property is owner occupied, the acquiring agency,
and the race and ethnicity of the borrower as required by
that Act, based on the data provided by the Federal National
Mortgage Association, the Federal Home Loan Mortgage
Corporation, the Federal Housing Administration, the
Department of Agriculture, and the Department of Veterans
Affairs, as applicable, to the Agency and added to the public
appraisal database by the Agency; and
``(K) such other information as the Agency may require by
regulation, after notice and comment.
``(2) Discretion to modify publicly available data.--The
Agency may modify data collected under this section, to be
made publicly available, if the Agency determines by
regulation, after notice and comment, that the release of the
unmodified data creates risks to a mortgage loan applicant or
mortgage loan borrower privacy interests that are not
justified by the benefits of such release to the public in
light of the statutory purposes.
``(f) Access to the Unmodified Database.--For enforcement
and other purposes, the Agency shall, upon request, provide
access to all information collected for the database pursuant
to this section, in unredacted form, to any Executive agency,
as defined in section 105 of title 5, United States Code, the
Board of Governors of the Federal Reserve System, the Office
of the Comptroller of the Currency, the Federal Deposit
Insurance Corporation, the National Credit Union
Administration, the Appraisal Subcommittee of the Federal
Financial Institutions Examination Council, the Bureau of
Consumer Financial Protection, and any State attorney
general, State appraiser regulator, or other State agency
with responsibility for laws related to appraisals.
``(g) Rule of Construction.--Nothing in this section shall
be construed to encourage unsafe or unsound lending,
appraisal, or valuation practices.
``(h) Rules and Interpretive Guidelines.--Not later than 1
year after the date of enactment of this section, the Agency
shall issue a final rule after notice and comment and issue
such guidance as may be necessary to carry out and enforce
this section.''.
(b) Reconsideration of Value.--
(1) In general.--Section 129E of the Truth In Lending Act
(15 U.S.C. 1639e) is amended--
(A) by redesignating subsections (j) and (k) as subsections
(k) and (l), respectively; and
(B) by inserting after subsection (i) the following:
``(j) Consumer Right to Reconsideration of Value or
Subsequent Appraisal.--
``(1) Definitions.--In this section:
``(A) Unacceptable appraisal practice.--The term
`unacceptable appraisal practice' means an appraisal report
that--
``(i) uses unsupported or subjective terms to assess or
rate the property without providing a foundation for analysis
and contextual information;
``(ii) uses inaccurate or incomplete data about the subject
property, the neighborhood, the market area, or any
comparable property;
``(iii) includes references, statements or comparisons
about crime rates or crime statistics, whether objective or
subjective;
``(iv) relies in the appraisal analysis on comparable
properties that were not personally inspected by the
appraiser when required by the appraisal's scope of work;
``(v) relies in the appraisal analysis on inappropriate
comparable properties;
``(vi) fails to use comparable properties that are more
similar, or nearer, to the subject property without adequate
explanation;
``(vii) uses comparable property data provided by any
interested party to the transaction without verification by a
disinterested party;
``(viii) uses inappropriate adjustments for differences
between the subject property and the comparable properties
that do not reflect the market's reaction to such
differences; or
``(ix) fails to make proper adjustments, including time
adjustments for differences between the subject property and
the comparable properties when necessary.
``(B) Unsupported.--The term `unsupported' means, with
respect to an appraisal report or an appraiser's opinion of
value, that the appraisal report or the opinion of value is
not supported by relevant evidence and logic.
``(2) Review.--In connection with a consumer credit
transaction secured by a consumer's principal dwelling, a
creditor shall have a review and resolution procedure for a
consumer-initiated reconsideration of value or subsequent
appraisal that complies with the following requirements:
``(A) The creditor shall complete its own appraisal review
before delivering the appraisal to the consumer.
``(B) The creditor shall have policies and procedures that
provide the consumer with a process to submit one request for
a reconsideration of value and subsequent appraisal prior to
the loan closing or within 60 calendar days of denial of a
credit application if the consumer believes the appraisal
report may be unsupported, may be deficient due to an
unacceptable appraisal practice, or may reflect
discrimination.
``(C) At the time of application and upon delivery of the
appraisal report to the consumer, the creditor shall provide
a written disclosure to the consumer describing the process
for requesting a reconsideration of value or subsequent
appraisal, which written disclosure shall include a
standardized format for the consumer to submit the request
for a reconsideration of value, including--
``(i) the name of the borrower;
``(ii) the property address;
``(iii) the effective date of the appraisal;
``(iv) the appraiser's name;
``(v) the date of the request;
``(vi) a description of why the consumer believes the
appraisal report may be unsupported, may be deficient due to
an unacceptable appraisal practice, or may reflect
discrimination;
``(vii) any additional information, data, including not
more than 5 alternative comparable properties and the related
data sources that the consumer would like the appraiser to
consider; and
``(viii) an explanation of why the new information, data,
or comparable properties support the reconsideration of
value.
``(D) The creditor shall obtain the necessary information
from the consumer if the consumer's request for
reconsideration of value or subsequent appraisal is unclear
or requires more information.
``(E) The creditor shall have a standardized format to
communicate the reconsideration of value to the appraiser,
which format shall include--
``(i) the name of the borrower;
``(ii) the property address;
``(iii) the effective date of the appraisal;
``(iv) the appraiser's name;
``(v) the date of the request;
``(vi) a description of any area of the appraisal report
that may be unsupported, may be deficient due to an
unacceptable appraisal practice, or may reflect
discrimination;
``(vii) any additional information, data, including not
more than 5 alternative comparable properties and the related
data sources that the consumer would like the appraiser to
consider;
``(viii) an explanation of why the new information, data,
or comparable properties support the reconsideration of
value;
``(ix) a definition of turn-time expectations for the
appraiser to communicate the reconsideration of value results
back to the creditor;
``(x) instructions for delivering the reconsideration of
value response as part of a revised appraisal report that
includes commentary on conclusions regardless of the outcome;
and
``(xi) a reference for appraisers on how to correct minor
appraisal issues or non-material errors not related to the
reconsideration of value process.
``(3) Subsequent appraisal and referral.--
``(A) In general.--If the creditor identifies material
deficiencies in the appraisal report that are not corrected
or addressed by the appraiser upon request of the creditor,
including through a consumer-initiated reconsideration of
value, or if there is evidence of unsupported or unacceptable
appraisal practices, the creditor shall--
``(i) at the request of the consumer, order a subsequent
appraisal at the creditor's own expense; and
``(ii) forward the appraisal report and the creditor's
summary of findings to the appropriate appraisal licensing
agency or regulatory board.
``(B) Discrimination.--If the creditor has reason to
believe that an appraisal report reflects discrimination, the
creditor shall--
``(i) order a subsequent appraisal, at the creditor's own
expense;
``(ii) forward the appraisal report and the creditor's
summary of findings to the appropriate local, State, or
Federal enforcement agency; and
``(iii) upon a final determination of discrimination by the
appropriate local, State,

[[Page S845]]

or Federal enforcement agency, receive a reimbursement from
the appraiser covering the cost of the subsequent appraisal
ordered by the creditor.
``(C) Definition.--
``(i) In general.--Except as provided in clause (ii), in
this paragraph, the term `reason to believe' means that the
creditor has reviewed the applicable law and available
evidence and determined that a potential violation of Federal
or state antidiscrimination law exists. The available
evidence may include the appraisal report, loan files,
written communications, credible observations by persons with
direct knowledge, statistical analysis, and the appraiser's
response to the request for a reconsideration of value.
``(ii) Exception.--The term `reason to believe' does not
mean that there is a final legal determination of
discrimination.
``(4) Document retention.--The creditor shall retain all
documentation and written communications related to the
request for reconsideration of value or subsequent appraisal
in the loan file during the seven-year period beginning on
the date on which the consumer submitted the credit
application.
``(5) Rule of construction.--This subsection is consistent
with the exceptions to the appraiser independence
requirements found in Section 129E(c) of the Truth in Lending
Act (15 U.S.C. 1639e(c)). Nothing in this subsection shall be
construed to require a creditor to submit a reconsideration
of value to the original appraiser before ordering a
subsequent appraisal from a subsequent appraiser.''.
(2) Rules and interpretative guidelines.--Section 129E(g)
of the Truth in Lending Act (15 U.S.C. 1639e(g)) is amended--
(A) in paragraph (1), by striking ``paragraph (2), the
Board'' and inserting ``paragraphs (2) and (3), the Bureau'';
and
(B) by adding at the end the following:
``(3) Final rule.--Not later than 1 year after the date of
enactment of this paragraph, the Federal Housing Finance
Agency shall issue a final rule after notice and comment and
issue such guidance as may be necessary to carry out and
enforce subsection (j).''.
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