The Appraisal Modernization Act requires federal housing agencies to create a public online database of residential real estate appraisals collected since 2017, with quarterly updates, to help identify potential discrimination or unfair treatment by lenders and appraisers. The bill gives borrowers the right to challenge appraisals they believe are flawed or discriminatory by requesting a reconsideration of value or a new appraisal through a standardized form submitted within 60 days of loan denial or before closing. Lenders must review these challenges and, if material deficiencies or discrimination are found, must order a new appraisal at their own expense, report findings to regulators, and keep documentation for seven years. The appraisal database must be searchable and accessible online within two years, allowing the public to monitor fair lending practices across neighborhoods and borrower demographics. This legislation aims to increase transparency in the appraisal process and protect consumers from discriminatory or inaccurate property valuations that could affect their ability to obtain mortgages.
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