The Appraisal Modernization Act makes two major changes to how home appraisals work in the mortgage lending process.

First, it creates a public database of home appraisal information. Federal agencies that handle mortgages—like Fannie Mae, Freddie Mac, the FHA, and the VA—must share their appraisal data with a central agency, which will then make it available online for anyone to search and download. This database will include detailed information about properties, how they were appraised, comparable sales used, and borrower demographics. The goal is to let the public, government agencies, and states see whether appraisals are being done fairly and consistently across different neighborhoods and communities. However, the agency can hide certain personal information if needed to protect privacy.

Second, the bill gives homebuyers and mortgage applicants new rights to challenge appraisals they believe are wrong or unfair. If someone thinks their home's appraisal is too low, unsupported by evidence, or reflects discrimination, they can request the lender review it. The lender must have a clear process for this, provide written instructions on how to request a review, and give the appraiser a chance to reconsider. If problems aren't fixed, the borrower can request a completely new appraisal at the lender's expense. If the lender suspects discrimination in an appraisal, it must order a new one and report the issue to authorities. This gives borrowers a formal way to fight appraisals that might unfairly lower their home's value.