Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Federal Deposit Insurance Corporation relating to "Quality Control Standards for Automated Valuation Models".
This joint resolution uses the Congressional Review Act to disapprove the Federal Deposit Insurance Corporation’s (FDIC) rule titled “Quality Control Standards for Automated Valuation Models,” published August 7, 2024 (89 Fed. Reg. 64538). If enacted, the resolution would render the rule void and have no force or effect. In practical terms, Congress would be blocking the FDIC from implementing the proposed quality-control standards for automated valuation models (AVMs) used in real estate valuations tied to FDIC-regulated banks, and the FDIC would be prohibited from enforcing those standards as written in the rule. The measure relies on Congress’s authority to review and reject federal agency rules under the Congressional Review Act. It does not repeal the underlying policy initiatives outright through statute; rather, it blocks this specific rule from taking effect. The FDIC could pursue a different regulatory approach in the future only if Congress conducts new rulemaking or provides new statutory authority.
Key Points
- 1Purpose and mechanism: The bill provides congressional disapproval of the FDIC rule on Quality Control Standards for Automated Valuation Models under the Congressional Review Act, meaning the rule would have no force or effect if the resolution becomes law.
- 2Rule being disapproved: The affected rule is the FDIC’s AVM quality-control standards published in the Federal Register on August 7, 2024 (89 Fed. Reg. 64538).
- 3Scope of impact: The disapproval applies only to the specified AVM quality-control rule; it does not independently repeal other FDIC rules or broader policy initiatives.
- 4Legislative process: For the resolution to become law, it must be passed by both the House and the Senate and signed by the President (or enacted over a veto). If not enacted, the rule would remain in place.
- 5Policy implication: By disapproving the rule, Congress preserves the status quo for AVM valuation practices under FDIC supervision, delaying or preventing the specific QC standards the rule would have imposed.