# Plain Language Summary: GREEN Appraisals Act of 2025

This bill changes how home appraisals work when you're getting a mortgage. Right now, when a bank appraises your home to decide how much to lend you, they typically ignore energy-efficient features like solar panels, new insulation, or high-efficiency heating systems. This bill says that if you have an energy report for your home—a document that shows how energy-efficient your property is—the appraiser must consider that information when determining your home's value. The idea is that energy-efficient homes should potentially be worth more because they cost less to operate, and that value should be reflected in the appraisal.

Here's what actually changes for homeowners: When you apply for a mortgage, the lender must tell you that you can provide an energy report to the appraiser and that you have the right to request one. If you get an energy report done (which shows things like your home's energy costs, efficiency features, and any renewable energy systems), you can share it with the appraiser. Starting in March 2026, if you consent, the lender must give your energy report to the appraiser when they assign the appraisal job. The appraiser then has to think about this information when deciding what your home is worth. However, the bill is clear that considering energy efficiency could help or hurt your appraisal—it's not a guarantee that your home value will go up.

The bill applies to mortgages backed by major government agencies like FHA, Veterans Affairs, Fannie Mae, and Freddie Mac. Banks will need to update their computer systems to handle appraisals that factor in energy information, and appraisers will need to take a training course on how to consider energy reports. The government agencies involved will create guidance on how this should work, with input from housing advocates, energy experts, appraisers, and lenders. Importantly, lenders cannot reject your loan application just because an appraiser considered energy information—they still have to use the appraiser's final value to decide whether to approve your mortgage.

GREEN Appraisals Act of 2025

Casten, Sean

Getting Renewable and Energy Efficient Neighborhoods Appraisals Act of 2025 or the GREEN Appraisals Act of 2025 This bill requires lenders that originate federally backed residential mortgages to notify borrowers of their right to request an energy report concerning the property.The bill also requires, upon consent of the borrower, the lender to provide to an appraiser any available energy report concerning the property. The appraiser must take this report into consideration when appraising the value of the property.