Real estate appraisers can be credentialed as either certified appraisers or licensed appraisers. Generally, state laws allow licensed appraisers to appraise most single-family homes while only certified appraisers can appraise more valuable and complex properties. Under federal law, only certified appraisers can conduct appraisals for home buyers seeking insurance from the Federal Housing Administration (FHA). H.R. 2852 would change the property appraisal requirements for mortgages insured by FHA by allowing licensed appraisers to also conduct those appraisals. The bill also would set minimum educational requirements for appraisers who appraise properties being financed by an FHA insured mortgage.
Using information from FHA, CBO estimates that implementing H.R. 2852 would have a minimal effect on the number of people who receive FHA insurance and that any administrative costs associated with implementing the new appraisal standards would total less than $500,000 over the 2020-2024 period. Such spending would be subject to the availability of appropriated funds.