GREEN Appraisals Act of 2025
Sponsored By: Representative Rep. Casten, Sean [D-IL-6]
Introduced
Summary
Integrate energy efficiency and renewable energy data into home mortgage appraisals. The bill would require lenders and appraisers to accept and consider standardized "energy reports" when valuing residential properties and notify borrowers about that option at loan application.
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- Families and homebuyers would get a required disclosure at application explaining they can request or provide an energy report and that such data could raise, lower, or not change the appraised value. Borrowers can request a free copy of the property's energy report.
- Appraisers would have to be "qualified" to use energy reports and consider features like efficiency, renewable systems, estimated savings, and energy use versus comparable homes. The qualification includes at least 7 hours of continuing education on energy reports.
- Lenders and creditors would, with borrower consent, pass available energy reports to the appraiser and must not use consideration of an energy report as a reason to reject an appraisal or the loan application. Lenders must update underwriting and origination systems within two years to accept appraisals that incorporate energy reports.
- Federal housing agencies including FHA, the Federal Housing Finance Agency and enterprises it oversees, Ginnie Mae, USDA Rural Housing Service, and the Department of Veterans Affairs would jointly issue guidance and form an advisory committee of stakeholders to set standards for report sharing and valuation approaches.
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 1 benefits, 1 costs, 3 mixed.
Agency guidance and stakeholder advisory group
Agency heads would issue joint guidance for lenders on energy reports and appraisals. It would confirm accepted appraisal methods for valuing energy features and set disclosure and sharing procedures. It would not tell appraisers how to weigh the energy data. Agencies would also create an advisory group of housing, energy, raters, builders, architects, lenders, consumers, and appraisers.
Energy reports in home appraisals and lender rules
If enacted, lenders on covered mortgages would have to give you a written notice early in the application. It would say you may provide or request an energy report. It would warn the value could be higher, lower, or the same, and this may affect your loan. You could get a free copy of any energy report on request. Starting March 1, 2026, with your consent, lenders would give the report to the appraiser when the job starts. Appraisers would have to consider the report when valuing the home. Lenders must use the qualified appraiser’s value and cannot reject an appraisal or application just because an energy report was considered. Within two years after enactment, agencies would require lenders to use systems that handle these appraisals.
Standard energy report options for homes
If enacted, an energy report would be a home-specific review of energy features, costs or savings, and any on-site generation. Reports would use approved methods, like HERS by a RESNET-certified rater or DOE’s Home Energy Score. Other tools could be approved if they include quality checks. These standards would apply upon enactment.
Which mortgages these rules would cover
If enacted, these rules would cover residential mortgages tied to major federal housing agencies. Covered loans include those made, insured, purchased, guaranteed, or securitized by FHA, FHFA (Fannie Mae and Freddie Mac), Ginnie Mae, USDA Rural Housing Service, or VA, or intended to be. Coverage would start upon enactment.
New training to be a qualified appraiser
If enacted, to be a qualified appraiser for these loans, you would need state licensure. You would also need at least a 7-hour approved course with case studies and a passed exam. The course must be approved by the Appraiser Qualification Board. This would apply upon enactment.
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Sponsors & CoSponsors
Sponsor
Rep. Casten, Sean [D-IL-6]
IL • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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