HJRES 47119th CongressIn Committee

Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Office of the Comptroller of the Currency 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 under the Congressional Review Act (CRA) that would block the Office of the Comptroller of the Currency (OCC) from implementing its rule on “Quality Control Standards for Automated Valuation Models” (AVMs). The resolution, introduced by Representative Clyde, states that Congress disapproves the OCC rule published in the Federal Register on August 7, 2024 (89 Fed. Reg. 64538) and provides that the rule shall have no force or effect. If enacted, this would prevent the AVM quality control standards from taking effect and would keep the regulatory framework from adopting those specific standards. The CRA process allows Congress to invalidate new federal rules through a joint resolution of disapproval. Passage of this resolution in both chambers and its signing by the President would block the rule; it does not automatically repeal existing statutes or require the OCC to issue a revised rule, but it forecloses the specific rule as proposed unless Congress takes further action on a different approach.

Key Points

1The bill uses the Congressional Review Act’s disapproval mechanism to block a federal rule issued by the OCC.
2The target is the OCC’s rule titled “Quality Control Standards for Automated Valuation Models,” published August 7, 2024 (89 Fed. Reg. 64538).
3If enacted, the rule would have no force or effect and could not be implemented as proposed.
4The measure was introduced in the House by Rep. Clyde and referred to the Committee on Financial Services; no Senate action is noted in the provided text.
5The bill does not repeal the OCC’s authority to regulate AVMs or create a new alternative rule; it simply disapproves this particular rule under the CRA. Reissuing a substantially similar rule would generally require future congressional action.

Impact Areas

Primary group/area affected- Banks and financial institutions regulated by the OCC, particularly those that rely on Automated Valuation Models for valuations in lending decisions.- Risk management and compliance teams within banks, and AVM vendors who provide valuation models to lenders.Secondary group/area affected- Real estate appraisers and appraisal management companies who participate in or are affected by automated valuation practices.- Mortgage lenders and borrowers who could be impacted by the availability or governance of AVMs used in loan underwriting.Additional impacts- Federal regulatory process: A demonstration of Congress exercising its oversight over executive agency rulemaking, potentially influencing future OCC approaches to AVMs.- Regulatory landscape: If the rule is blocked, there may continue to be reliance on existing guidelines and interagency practices (e.g., prior appraisal guidelines) or a future alternative rule proposed by the OCC or other regulators.- Market and risk considerations: The absence of the proposed quality control standards could affect how AVMs are used, tested, and monitored for accuracy and bias, which in turn can influence lending risk management and consumer outcomes.

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