Six Democratic senators have introduced legislation designed to address the potential for systemic bias in the home appraisal process.
The Appraisal Modernization Act would require the Federal Housing Finance Agency to publish an online database of property-level appraisal and other home valuation data that lenders collect in connection with a mortgage application. It would also codify a consumer’s right to appeal a home valuation or request a second appraisal by developing standardized policies to ensure consistent treatment of consumers appealing a valuation or requesting a second appraisal.
“Home valuations are a critical part of the mortgage lending process and ensuring families can build generational wealth through homeownership,” said Sen. Raphael Warnock (D-GA). “This bill is an important next step in helping Georgia families and all Americans realize the full value of their homes, and it empowers them with more data and tools to fight bias that would lower their homes’ values.”
In addition to Warnock, the Appraisal Modernization Act is cosponsored by Sens. Angela Alsobrooks (D-MD), Lisa Blunt Rochester (D-DE), Cory Booker (D-NJ), Andy Kim (D-NJ), and Elizabeth Warren (D-MA).
