Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Board of Governors of the Federal Reserve System relating to "Quality Control Standards for Automated Valuation Models".
This joint resolution uses the Congressional Review Act to disapprove the Federal Reserve Board’s rule on “Quality Control Standards for Automated Valuation Models” (AVMs). If Congress enacts the resolution (and it becomes law), the Fed’s rule published at 89 Fed. Reg. 64538 on August 7, 2024 would have no force or effect. In practical terms, this means the Fed would not be allowed to enforce or implement those quality-control standards for AVMs as proposed, and it would be as if the rule had not been issued. The AVM rule covers how automated property valuations should be quality-controlled, including data quality, model development, testing/validation, governance, and documentation. The resolution indicates Congress’ disapproval of that rule and blocks its effect, at least for the time being, pending further action.
Key Points
- 1Purpose and mechanism: The bill employs the Congressional Review Act to disapprove a specific federal rule and thus prevent it from taking effect.
- 2Targeted rule: It disapproves the Federal Reserve Board’s rule on “Quality Control Standards for Automated Valuation Models,” published Aug. 7, 2024 (89 Fed. Reg. 64538).
- 3Legal effect if enacted: The rule would have no force or effect; the Fed could not enforce or rely on those QC standards for AVMs.
- 4Status and sponsor: Introduced in the House (H.J. Res. 48) by Mr. Clyde, referred to the Committee on Financial Services; status is “introduced.”
- 5Policy context: This is a congressional check on agency rulemaking under the Congressional Review Act, reflecting a legislative balance with or pushback against the Fed’s approach to regulating AVMs in mortgage underwriting and real estate valuation.