Homebuyer Assistance Act of 2019

Floor Speech

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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 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.

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