HJRES 51119th CongressIn Committee

Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Bureau of Consumer Financial Protection relating to "Quality Control Standards for Automated Valuation Models".

Introduced: Feb 12, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

This bill is a joint resolution invoking the Congressional Review Act to disapprove a specific federal rule issued by the Bureau of Consumer Financial Protection (CFPB) titled “Quality Control Standards for Automated Valuation Models.” If enacted, the resolution would prevent the August 7, 2024 rule (as published at 89 Federal Register 64538) from taking effect and would maintain current law rather than implementing the CFPB’s quality-control requirements for automated valuation models (AVMs). In short, Congress would block the CFPB’s attempt to impose QC standards on AVMs used in consumer financial transactions, such as mortgage lending. The bill was introduced in the House by Mr. Clyde and referred to the Committee on Financial Services. Under the Congressional Review Act, if both chambers pass the joint resolution and it is signed into law (or enacted without a veto), the rule would have no force or effect. The sponsor is unknown from the provided text, and the bill status remains “Introduced.”

Key Points

1Uses the Congressional Review Act (chapter 8 of title 5, U.S.C.) to disapprove the CFPB rule on Quality Control Standards for Automated Valuation Models (AVMs) and blocks its implementation.
2The disapproval applies to the specific rule published August 7, 2024 (89 Fed. Reg. 64538) and would render it null and void.
3The rule in question would have established QC standards governing AVMs used in consumer financial contexts, notably in mortgage lending and real estate valuations.
4The bill’s action does not necessarily repeal or amend other CFPB authorities; it simply disapproves this particular rule under CRA.
5The bill is introduced in the House (sponsor identified as Mr. Clyde) and referred to the Committee on Financial Services; no Senate action or presidential action is indicated in the text provided.

Impact Areas

Primary group/area affected- Mortgage lenders, banks, and other financial institutions that rely on Automated Valuation Models for property valuations and underwriting.- Real estate appraisal and AVM technology providers who would be subject to QC standards.Secondary group/area affected- Consumers seeking mortgage credit or other loans that involve property valuations, who could be impacted by changes (or delays) in valuation practices and oversight.- CFPB and other federal regulators, whose regulatory framework would be effectively blocked for this particular rule.Additional impacts- Administrative/legislative process: Demonstrates Congress exercising oversight via the Congressional Review Act to block a recent rule.- Potential economic and compliance implications: If the rule would have added QC obligations and costs for AVM governance, its disapproval could limit new compliance burdens for financial institutions and technology vendors, while potentially affecting the quality/control of automated valuations.- Policy setting: Signals congressional stance on AVM regulation and model risk management within consumer finance and mortgage markets.Automated Valuation Models (AVMs): computer-generated estimates of property values used by lenders and others to assess real estate value, often without a human appraisal.Quality Control Standards: procedures and criteria intended to ensure accuracy, reliability, and proper governance of AVMs.Congressional Review Act (CRA), chapter 8 of title 5 U.S.C.: a mechanism allowing Congress to review and potentially overrule federal agency regulations by passing a joint resolution of disapproval. If enacted into law, the rule does not take effect.

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