Homebuyer Assistance Act Addresses Appraisal Shortages

The Homebuyer Assistance Act of 2019, H.R. 2852, originally introduced by Reps. Brad Sherman and Sean Duffy on May 20, has been advanced by the House Financial Services Committee. Officials state that the measure would make it easier for homebuyers to buy a home. The measure was passed on July by a unanimous vote.

“The process of purchasing a home is already difficult enough for first-time, low-income, and minority homebuyers, they do not need the added challenge of finding a certified appraiser,” Sherman said in a statement. “This legislation is a common-sense revision to current appraisal requirements, which will make FHA mortgage accessible to more Americans.” Sherman also thanked House Financial Services Committee Chairwoman Maxine Waters for working closely with him on this issue.”

According to officials, H.R. 2852 will address the current shortage of certified appraisers by  reducing a number of hurdles that appraisers currently face before they are allowed to perform appraisals for home purchases financed by an Federal Housing Administration (FHA) mortgage. The intention is to make it easier for homebuyers to buy a home with a FHA mortgage. 

Sherman notes that these changes would help address the shortage of certified appraisers that exists in some parts of the United States.

“In response to a 2017 survey, nearly 75% of appraisers cited regulatory burdens as a leading reason they would leave the field,” said a statement. “Moreover, this lack of appraisers for FHA-insured mortgages has a disproportionately large impact on first-time homebuyers, low- and moderate-income households, and minorities. Over 83% of FHA mortgages made to purchase a home in 2018 were obtained by first-time homebuyers and over one third of all FHA loans were obtained by minority households.”

This bill is supported by: The Center for Responsible Lending, the Appraisal Foundation, the Appraisal Institute, the Real Estate Valuation Advocacy Association, the National Association of Appraisers, the American Society of Appraisers, the MBREA – Association for Valuation Professionals, the National Association of REALTORS, the National Association of Home Builders, the American Bankers Association, the Mortgage Bankers Association, the Credit Union National Association, the National Association of Federal Credit Unions, the Community Home Lenders Association, and the Independent Community Bankers of America.