The GREEN Appraisals Act of 2025 would require federal housing and mortgage agencies to ensure that energy efficiency and renewable energy features are considered in residential mortgage appraisals. For covered loans, creditors would have to give borrowers a disclosure explaining that an energy report may be provided to the appraiser, that borrowers may request such a report, and that the report can affect the appraised value either positively or negatively. The bill also requires that, when an energy report is available and the borrower consents, it be shared with the appraiser, and that the appraiser take the report into account when determining value.
The bill defines an energy report broadly to include information on a home’s energy-related features, expected energy costs or savings, and expected energy generated by renewable energy systems. It directs the covered agencies to issue joint guidance, create an advisory committee of stakeholders, and require underwriting/origination systems to accommodate appraisals that consider energy reports. It also sets qualifications for appraisers who use these reports, including state licensure and specialized continuing education on energy-report appraisal methods.
Impact
The bill would affect federal mortgage and housing programs overseen by HUD/FHA, FHFA and the government-sponsored enterprises, Ginnie Mae, USDA Rural Housing Service, and the Department of Veterans Affairs. It would not directly change state property law, but it would alter appraisal and underwriting practices for federally related residential mortgage loans by requiring consideration of energy efficiency and renewable energy characteristics in valuation. It also creates new disclosure obligations for creditors and new training/competency expectations for appraisers handling these transactions.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes, the measure appears to be framed as a pro-efficiency, pro-consumer housing policy intended to modernize appraisals and recognize home energy performance in value determinations. The structure of the bill suggests support for standardized implementation, consumer disclosure, and stakeholder consultation rather than a punitive regulatory approach. No formal vote history or transcript material is available here to show broader political support or opposition.
Contention
The main points of potential contention are likely to be the effect on appraisal outcomes, lender underwriting, and implementation burden. The bill explicitly warns that considering an energy report may raise, lower, or not change value, and that it may help or hurt a borrower’s ability to obtain a loan, which could concern consumer advocates and lenders worried about uncertainty or inconsistent valuation. Appraisers and creditors may also scrutinize the required training, systems changes, and the mandate that appraisers consider energy data, while supporters are likely to emphasize consumer transparency, market recognition of efficiency upgrades, and better treatment of renewable energy features.