House Passes Sherman Amendment to Help Ease the Homebuying Process for FHA Mortgage Borrowers

WASHINGTON, D.C. – The House voted to adopt an amendment led by Congressman Brad Sherman (D-CA), Chair of the House Financial Services Subcommittee on Investor Protection and Capital Markets, as part of the annual defense authorization bill. The amendment works to make it easier for homebuyers to purchase a home with a Federal Housing Administration (FHA) mortgage. This amendment builds upon legislation, the Homebuyer Assistance Act, that was passed by the House in May of last year and that was led by Congressman Sherman.

"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 Congressman Sherman. "This amendment builds on our efforts to revise the current appraisal requirements which will make FHA mortgages accessible to more Americans."

This amendment would bolster efforts to help address the current shortage of certified appraisers that some parts of the country are currently facing. 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 people of color. Over 83 percent of FHA mortgages for the purchase of a home in 2020 were obtained by first-time homebuyers and over one third of all FHA loans were obtained by minority households.

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