Congressman Brad Sherman Legislation to Help Ease the Homebuying Process Passes House Committee
Washington, DC – On Thursday July 11, the House Financial Services Committee passed by a unanimous vote, legislation led by Congressman Brad Sherman and Congressman Sean Duffy to make it easier for homebuyers to buy a home with a Federal Housing Administration (FHA) mortgage by addressing the current shortage of certified appraisers. H.R. 2852, the Homebuyer Assistance Act of 2019 would do this by reducing a number of hurdles that appraisers currently face before they are allowed to perform appraisals for home purchases financed by an FHA mortgage. Federal standards set for FHA appraisers would be brought in line with the federal minimum requirements already in place for other home mortgages, particularly those purchased by Fannie and Freddie.
By making this change the Homebuyer Assistance Act of 2019 would help address the shortage of certified appraisers that exists some parts of the United States. In response to a 2017 survey, nearly 75 percent of appraisers cited regulatory burdens as a leading reason they would leave the field. 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.
“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,” said Rep. Sherman. “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.
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.