[Congressional Record Volume 165, Number 144 (Tuesday, September 10, 2019)]
[House]
[Pages H7572-H7573]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    HOMEBUYER ASSISTANCE ACT OF 2019

  Mr. SAN NICOLAS. Mr. Speaker, I move to suspend the rules and pass 
the bill (H.R. 2852) to amend the National Housing Act to authorize 
State-licensed appraisers to conduct appraisals in connection with 
mortgages insured by the FHA and to require compliance with the 
existing appraiser education requirement, and for other purposes, as 
amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 2852

       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 ``Homebuyer Assistance Act of 
     2019''.

     SEC. 2. APPRAISAL STANDARDS FOR SINGLE-FAMILY HOUSING 
                   MORTGAGES.

       (a) Certification or Licensing.--Paragraph (5) of section 
     202(g) of the National Housing Act (12 U.S.C. 1708(g)) is 
     amended--
       (1) by striking subparagraph (A) and inserting the 
     following new subparagraph:
       ``(A)(i) in the case of an appraiser for a mortgage for 
     single-family housing, be certified or licensed by the State 
     in which the property to be appraised is located; and
       ``(ii) in the case of an appraiser for a mortgage for 
     multifamily housing, be certified by the State in which the 
     property to be appraised is located; and''; and
       (2) in subparagraph (B), by inserting before the period at 
     the end the following: ``, which, in the case of appraisers 
     for any mortgage for single-family housing, shall include 
     completion of a course or seminar that consists of not less 
     than 7 hours of training regarding such appraisal 
     requirements that is approved by the Course Approval Program 
     of the Appraiser Qualifications Board of the Appraisal 
     Foundation or a State appraiser certifying and licensing 
     agency''.
       (b) Compliance With Verifiable Education Requirements; 
     Grandfathering.--Effective beginning on the date of the 
     effectiveness of the mortgagee letter or other guidance 
     issued pursuant to subsection (c) of this section, 
     notwithstanding any choice or approval of any appraiser made 
     before such date of enactment, no appraiser may conduct an 
     appraisal for any mortgage for single-family housing insured 
     under title II of the National Housing Act (12 U.S.C. 1707 et 
     seq.) unless such appraiser is, as of such date of 
     effectiveness, in compliance with--
       (1) all of the requirements under section 202(g)(5) of such 
     Act (12 U.S.C. 1708(g)(5)), as amended by subsection (a) of 
     this section, including the requirement under subparagraph 
     (B) of such section 202(g)(5) (relating to demonstrated 
     verifiable education in appraisal requirements); or
       (2) all of the requirements under section 202(g)(5) of such 
     Act as in effect on the day before the date of the enactment 
     of this Act.
       (c) Implementation.--Not later than the expiration of the 
     240-day period beginning on the date of the enactment of this 
     Act, the Secretary of Housing and Urban Development shall 
     issue a mortgagee letter or other guidance that shall--
       (1) implement the amendments made by subsection (a) of this 
     section;
       (2) clearly set forth all of the specific requirements 
     under section 202(g)(5) of the National Housing Act (as 
     amended by subsection (a) of this section) for approval to 
     conduct appraisals under title II of such Act for mortgages 
     for single-family housing, which shall include--
       (A) providing that the completion, prior to the effective 
     date of such mortgagee letter or guidance, of training 
     meeting the requirements under subparagraph (B) of such 
     section 202(g)(5) (as amended by subsection (a) of this 
     section) shall be considered to fulfill the requirement under 
     such subparagraph; and
       (B) providing a method for appraisers to demonstrate such 
     prior completion; and
       (3) take effect not later than the expiration of the 180-
     day period beginning upon issuance of such mortgagee letter 
     or guidance.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Guam (Mr. San Nicolas) and the gentleman from Ohio (Mr. Stivers) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Guam.


                             General Leave

  Mr. SAN NICOLAS. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days within which to revise and extend 
their remarks on this legislation and to insert extraneous material 
thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Guam?
  There was no objection.
  Mr. SAN NICOLAS. Mr. Speaker, I yield myself such time as I may 
consume.
  H.R. 2852, the Homebuyer Assistance Act of 2019, would make a 
commonsense update to FHA's requirements governing appraisals, to allow 
licensed appraisers to conduct appraisals for FHA-backed mortgages.
  The current requirement for all FHA loans to utilize a certified 
appraiser is simply outdated as it was put into place at a time when 
there were no minimum Federal standards for State licensure of 
appraisers, leaving concerns about consistency and competency across 
States. Now that we do have minimum standards for licensure, FHA's 
certification requirement is not only out of date and out of alignment 
with Fannie and Freddie, it is also creating market pressures for 
lenders to require certified appraisers for all loans, even if they are 
not FHA loans, just in case the mortgage switches to an FHA loan midway 
through the process. This, in turn, makes it harder for licensed 
appraisers to obtain work at a time when certain areas are experiencing 
appraiser shortages and when we are already struggling to recruit new 
appraisers effectively.
  There is simply no sound policy rationale to explain why licensed 
appraisers that are perfectly qualified to conduct appraisals for GSE 
loans are not qualified to conduct appraisals for FHA loans.
  This bill is supported by a broad coalition of not just appraisal 
industry groups but also lenders and housing advocacy groups that 
recognize that this is an unnecessary barrier.
  I thank Mr. Sherman for introducing this legislation and the 
Republican cosponsor, Mr. Duffy, for his support for this important 
bill.
  Mr. Speaker, I urge all Members to vote ``yes,'' and I reserve the 
balance of my time.
  Mr. STIVERS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of H.R. 2852, the Homebuyer Assistance 
Act of 2019.
  As my friend from Guam just explained, unfortunately, there are two 
different standards between the regular government-sponsored 
enterprises that finance homes and the Federal Housing Administration, 
FHA. Today, FHA requires certified appraisers. This bill changes it to 
certified or licensed appraisers, just like the other government-
sponsored enterprises, to allow the entire pool of appraisers in a 
given area to be allowed to be used to appraise homes. As my friend 
from Guam explained, there are appraiser shortages in many areas around 
the country, so this will, I think, be very helpful.
  This bill also requires a minimum amount of training that is required 
by The Appraisal Foundation or State licensing agencies in order to be 
an appraiser that can appraise on FHA transactions.
  These changes, I think, will help appraisers, and it will help make 
sure that there is a quality pool of appraisers regardless of whether 
somebody has a regular government-sponsored enterprise or an FHA loan.
  Mr. Speaker, we are excited to support this. This is bipartisan. I 
support the bill, and I reserve the balance of my time.
  Mr. SAN NICOLAS. Mr. Speaker, I yield 5 minutes to the gentleman from 
California (Mr. Sherman).
  Mr. SHERMAN. Mr. Speaker, I thank the gentleman from Guam for 
yielding.
  I would like to thank our colleague from Wisconsin (Mr. Duffy) for 
working with me on this bill, the Homebuyer Assistance Act of 2019. He 
has worked hard to ensure that this is a collaborative and bipartisan 
process.
  I would also like to thank the chair of our committee, the 
gentlewoman from California, and her staff for their assistance with 
this bill and her support in bringing the bill forward.
  There is no more important day in the economic life of a family than 
the day that they buy a home, and some 83 or 84 percent of those with 
FHA financing are purchasing their first home. Appraisers play an 
important role in the process.
  This bill would change the rules a bit for FHA appraisers so as to 
bring them in line with the rules we already have for Fannie Mae and 
Freddie Mac, which are the larger, federally controlled entities 
engaged in guaranteeing or financing homes, and it will deal with

[[Page H7573]]

the shortage of certified appraisers that we are experiencing in parts 
of the country.
  Let me point out that this bill deals only with single-family homes. 
You could make the argument, Mr. Speaker, that you should have a 
certified appraiser in dealing with complex commercial, industrial, and 
multifamily properties. This bill focuses on single-family homes.
  The bill has broad support of both consumer advocacy organizations 
and industry stakeholders. To name a few, the Homebuyer Assistance Act 
is supported by the Center for Responsible Lending, The Appraisal 
Institute, the National Association of Realtors, the Credit Union 
National Association, and the Independent Community Bankers of America.
  This bill will make it easier for home buyers to buy a home with 
Federal Housing Administration mortgages by expanding the number of 
appraisers that are allowed to do the appraisals of those homes.
  I am pleased to say that in the other body, Senators Thune and Tester 
have introduced a parallel piece of legislation, a bipartisan piece of 
legislation, and I look forward to putting this bill on the President's 
desk.
  As other speakers have pointed out, including the gentleman from 
Guam, until 2010, there were no nationwide standards for licensed home 
appraisers. But since 2010, we have minimum Federal education, 
experience, and examination requirements set by the Appraiser 
Qualifications Board, so there is no reason at all to require that 
certified appraisers be involved, and it is entirely appropriate to 
have either certified or licensed appraisers.
  This fix will help first-time home buyers. As I pointed out, over 83 
percent of FHA home purchase mortgages are being made to first-time 
home buyers, 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 home buyers. We should not have the additional challenge of 
finding a certified appraiser.
  We have a real interest in making sure the FHA process is one that 
works well just as the process works for Fannie Mae and Freddie Mac by 
allowing either licensed or certified appraisers.
  As I have pointed out, this bill applies only to single-family homes, 
duplexes, and, I believe, R4 properties. It does not deal with complex 
commercial, multifamily, and industrial properties.
  I am pleased to say that with the support of all of our colleagues on 
the committee, this bill was approved by voice vote at the Financial 
Services Committee. I was there on July 11; there was not one 
dissenting voice raised.
  Mr. Speaker, I hope we can repeat that success again here on the 
floor, so I urge my colleagues to vote ``yes'' on this bill.
  Mr. STIVERS. Mr. Speaker, I would like to close by thanking the 
gentleman from California for a bipartisan bill. I thank the gentleman 
from Wisconsin, Sean Duffy, from our side, the lead Republican on this 
bill.
  This is a bill that will get more appraisers in the pool to help 
people who want to buy homes that are financed by the FHA.
  Mr. Speaker, it is a win-win, and it is a bipartisan bill. We urge 
its support, and I yield back the balance of my time.
  Mr. SAN NICOLAS. Mr. Speaker, I too thank the gentleman from 
California (Mr. Sherman) for bringing this legislation forward and for 
the support of the gentleman from Wisconsin (Mr. Duffy).
  This bill removes unnecessary barriers to the home-buying process, 
which will help millions of Americans over time.
  Mr. Speaker, I urge my colleagues to join me in supporting this 
important piece of legislation, and I yield back the balance of my 
time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Guam (Mr. San Nicolas) that the House suspend the rules 
and pass the bill, H.R. 2852, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. SAN NICOLAS. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this motion will be postponed.

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