Originally published in the December 12, 2025, issue of AI’s Appraisal Now
Reprinted with permission from AI

The Appraisal Industry Improvement Act (AIIA), bipartisan legislation introduced in the House of Representatives by Janelle Bynum (D-OR) and Byron Donalds (R-FL), has reemerged as Congress prepares to take up a broader bipartisan housing package. Although the Senate-released National Defense Authorization Act (NDAA) ultimately excluded appraisal provisions, the momentum behind federal housing reforms creates a viable path for incorporating the AIIA and the Portal for Appraisal Licensing (PAL) Act into upcoming legislative negotiations.

The House bill focuses on targeted statutory updates that strengthen federal coordination, improve the structure of the appraisal regulatory framework, and enhance tools relied upon by lenders, regulators, and practitioners.

Key Provisions of the House AIIA

• Expanded Eligibility for FHA Assignments. The bill allows state-licensed appraisers, not only certified appraisers, to perform FHA appraisals, provided they meet additional education or experience requirements. This aligns FHA policy more closely with other lending programs and provides greater flexibility for lenders and appraisers while maintaining competency safeguards.
• Modernized Federal Representation. The bill adds representatives from the U.S. Department of Veterans Affairs (VA) and USDA Rural Housing Service to the Appraisal Subcommittee (ASC). This ensures that federal oversight reflects the full spectrum of housing programs, particularly in veteran and rural lending markets where appraisal policy integration is critical.
• Registry Inclusion for Trainee Appraisers. The AIIA authorizes the ASC to list state-credentialed trainee appraisers on the National Appraiser Registry, providing lenders with a consistent mechanism to verify trainee status and enabling clearer participation pathways within the profession.
• Support for State Licensing Agencies. The ASC is authorized to award grants to state appraiser regulatory agencies for education, training, technology modernization, and recruitment efforts, enhancing the capacity of state systems that license and oversee appraisers. Importantly, the bill also makes clear that professional organizations, including groups like the Appraisal Institute, would be eligible to receive ASC grant funding for education, training, and modernization initiatives that support the broader appraisal ecosystem.
• Flexible AMC Registry Fee Authority. The AIIA grants the ASC the authority to adjust appraisal management company (AMC) registry fees to better reflect market conditions and administrative needs, improving oversight stability and responsiveness.

Why the Appraisal Institute Supports the AIIA

“The AIIA gives Congress a real opportunity to modernize the appraisal regulatory framework in a way that strengthens federal coordination and supports a more efficient, accessible profession,” said Brian Rodgers, Senior Manager of Federal Affairs at the Appraisal Institute. “By improving pathways for trainees, reinforcing the role of state regulators, and aligning oversight across federal housing agencies, the bill delivers practical updates that benefit lenders, consumers, and appraisers alike. We’re encouraged to see this bipartisan momentum and look forward to working with lawmakers as housing legislation advances.”

The AIIA offers practical, bipartisan reforms that meaningfully strengthen the federal appraisal framework. The Appraisal Institute supports the legislation because it will enhance interagency coordination through expanded ASC representation.

The AIIA offers practical, bipartisan reforms that meaningfully strengthen the federal appraisal framework. Together with the PAL Act, the AIIA represents the most significant opportunity in years to update the foundational structures supporting the appraisal profession.

Next Steps

As the House prepares to consider a comprehensive bipartisan housing package, the AIIA stands as a strong, ready-made component for appraisal-system modernization. The Appraisal Institute will continue working with congressional offices to highlight how the bill complements federal housing policy priorities and supports a more efficient, transparent, and well-aligned appraisal oversight framework.