[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4218 Introduced in Senate (IS)]
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119th CONGRESS
2d Session
S. 4218
To amend title 38, United States Code, to address appraisal fees for
housing loans guaranteed by the Department of Veterans Affairs, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 26, 2026
Ms. Duckworth (for herself, Mr. Sheehy, and Mr. Banks) introduced the
following bill; which was read twice and referred to the Committee on
Veterans' Affairs
_______________________________________________________________________
A BILL
To amend title 38, United States Code, to address appraisal fees for
housing loans guaranteed by the Department of Veterans Affairs, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``VA Appraisal Modernization Act''.
SEC. 2. APPRAISAL FEES FOR DEPARTMENT OF VETERANS AFFAIRS HOME LOANS.
(a) In General.--Chapter 37 of title 38, United States Code, is
amended by inserting after section 3731 the following new section:
``Sec. 3731A. Appraisal fees
``(a) Definitions.--In this section:
``(1) Appraisal fee.--The term `appraisal fee' means the
compensation paid to an appraiser for conducting an appraisal
of property in connection with a loan guaranteed, insured, or
made under this chapter.
``(2) High-demand county.--The term `high-demand county'
means a county designated as a high-demand county under
subsection (c).
``(3) Remote county.--The term `remote county' means a
county designated as a remote county under subsection (c).
``(b) Annual Inflation Adjustment.--
``(1) Baseline.--Not later than 180 days after the date of
the enactment of the VA Appraisal Modernization Act, the
Secretary shall establish appraisal fees for purposes of this
chapter.
``(2) Adjustment.--On January 1, 2027, and annually
thereafter, the Secretary shall adjust the appraisal fees
established under paragraph (1) to reflect the percentage of
the increase, if any, in the purchase price of homes during the
previous year, as determined by the quarterly purchase-only
House Price Index published by the Federal Housing Finance
Agency, rounded to the nearest $25.
``(3) Publication; notice.--The Secretary shall--
``(A) publish the appraisal fees established under
this subsection on the publicly available website of
the Department of Veterans Affairs; and
``(B) directly notify the appraisers on the list
developed and maintained under section 3731(a)(3) of
this title of such fees.
``(c) Designation of High-Demand Counties and Remote Counties.--
``(1) High-demand counties.--
``(A) In general.--The Secretary shall designate a
county as a high-demand county for purposes of this
section if--
``(i) during the 90-day period preceding
the date on which the designation is made--
``(I) the average time to complete
an appraisal in the county exceeded the
timeliness standard established under
section 3731 of this title by more than
three business days; or
``(II) more than 15 percent of
appraisal assignments in the county
were unassigned for five or more
business days due to insufficient
appraiser availability; or
``(ii) the Secretary determines, based on
data analysis and market conditions, that
demand for appraisals in the county
substantially exceeds available appraiser
capacity.
``(B) List; updates.--The Secretary shall--
``(i) maintain a list of high-demand
counties designated under subparagraph (A); and
``(ii) on a quarterly basis, review and
update such list.
``(2) Remote counties.--
``(A) In general.--The Secretary shall designate a
county as a remote county for purposes of this section
if--
``(i) there are fewer than five appraisers
on the list developed and maintained under
section 3731(a)(3) of this title within 30
miles of the county's geographic center;
``(ii) the average distance traveled by an
appraiser to complete an assignment in the
county is greater than 40 miles one way; or
``(iii) the Secretary determines that the
county is characterized by low appraiser
density relative to loan volume.
``(B) List; updates.--The Secretary shall--
``(i) maintain a list of remote counties
designated under subparagraph (A); and
``(ii) on a quarterly basis, review and
update such list.
``(d) Appraisal Fees in High-Demand Counties.--
``(1) In general.--On January 1, 2027, and annually
thereafter, the Secretary shall increase the appraisal fee for
appraisals made in high-demand counties to not less than 125
percent of the appraisal fee established under subsection (b).
``(2) Increase.--In carrying out paragraph (1), the
Secretary may increase the appraisal fee for appraisals made in
a high-demand county to not more than 150 percent of the
appraisal fee established under subsection (b) if the county
has been designated as a high-demand county for four quarters
or more.
``(e) Mileage Reimbursement.--
``(1) In general.--For any appraisal made for purposes of
this chapter in a high-demand county or remote county, the
Secretary shall reimburse the appraiser for mileage at the rate
prescribed by the Administrator of General Services under
section 5707(b) of title 5 for use on official business of
privately owned automobiles.
``(2) Mileage.--In this subsection, the term `mileage'
means the round trip distance in miles between the appraiser's
place of business and the subject property.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
3731 the following new item:
``3731A. Appraisal fees.''.
SEC. 3. REPORT AND STUDY.
(a) Report.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Veterans Affairs shall submit
to the Committee on Finance of the Senate and the Committee on Ways and
Means of the House of Representatives a report that includes the
following:
(1) An estimation of--
(A) the effects of section 3731A of title 38,
United States Code, as added by section 2, on
government expenditures over time;
(B) the impact of such section on the number of
appraisers who join the appraisal network of the
Department of Veterans Affairs;
(C) the impact of such section on completion times
for appraisals in high-demand counties; and
(D) the impact of such section on the use of
housing loans guaranteed, insured, or made under
chapter 37 of title 38, United States Code.
(2) Recommendations to prevent fraud, waste, and abuse in
the implementation of such section.
(b) Study.--Not later than 180 days after the date of the enactment
of this Act, the Secretary of Veterans Affairs shall--
(1) conduct on a study on the feasibility and advisability
of--
(A) procuring contracts for home appraisers in
areas where supply cannot meet demand; and
(B) restructuring the appraisal process of the
Department of Veterans Affairs to more closely mirror
the appraisal process for loans insured by the Federal
Housing Administration; and
(2) submit to Congress, and make publicly available, a
report on the results of such study.
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