Homebuyer Assistance Act of 2021

Floor Speech

BREAK IN TRANSCRIPT

Mr. Speaker, I rise in support of H.R. 3008, the Homebuyer Assistance Act of 2021, sponsored by my friend from California (Mr. Sherman) and cosponsored by my colleague from Texas (Mr. Taylor), who are both superb active members of the Committee on Financial Services here in the House.

The committee reviewed many of the issues faced by the appraisal industry. There were two concerns heard loud and clear from the witnesses: the prolonged backlog for appraisals and the decreased quality in appraisals used in transactions involving loans insured by the Federal Housing Administration, the FHA.

H.R. 3008 addresses these concerns in two ways. First, the bill amends current law to expand the pool of appraisers eligible to participate in FHA-insured transactions from being just certified appraisers to include both certified and licensed appraisers.

Additionally, the bill addresses the different training requirements that each must meet. Currently, certified appraisers must have 1,500 hours of supervised experience without any property value or complexity restrictions. Licensed appraisers need only 1,000 hours of supervised experience, and there are some property value or complexity restrictions on licensed appraisers.

So H.R. 3008 sets minimum trending requirements for both types of appraisers in FHA transactions. Certified and licensed appraisers must have at least 7 hours of approved training by The Appraisal Foundation or their State licensing agency. These changes will help break that logjam and bring FHA's appraisal rules in line with the current appraisal rules used by our government-sponsored enterprises, Fannie Mae and Freddie Mac, in the secondary market and in the conventional mortgage market.

Moreover, the changes that Mr. Sherman and Mr. Taylor proposed will help alleviate the appraisal backlog at the FHA and increase the quality of work being performed. That would benefit both homeowners and taxpayers alike.

As a former community banker in Arkansas, I understand firsthand how the appraiser shortage has been a problem in my home State. For example, in Arkansas, there has been a consistent delay in home purchases in rural areas because of the increased burdens that this shortage has brought about. This has created a ripple effect that has had a negative impact on the economies or in those neighborhoods.

Mr. Speaker, I thank my friends, Mr. Sherman and Mr. Taylor.

BREAK IN TRANSCRIPT

Mr. HILL. Mr. Speaker, I thank my friend, the gentleman from California (Mr. Sherman), for his hard work on this bill.

I hope that we are able to get it over the finish line and to the President's desk. I appreciate Senator Thune working on this in the Senate.

It is an important piece of legislation that will aid, as Mr. Sherman outlined, first-time home buyers. A majority of this benefit speeds up that process for the family who is trying to buy their first home or a home that is low enough in mortgage size to be insured by the FHA. This is something we want to do to speed access to the American Dream for low- to moderate-income families.

I thank Mr. Sherman for his work, and I encourage all of my friends on both sides of the aisle to support H.R. 3008, and I yield back the balance of my time.

BREAK IN TRANSCRIPT

Source