Bill Summary
The legislation is a joint resolution passed by both the Senate and House of Representatives disapproving a specific rule issued by the Federal Deposit Insurance Corporation (FDIC). This rule, titled "Quality Control Standards for Automated Valuation Models," was published in the Federal Register. The resolution invokes chapter 8 of title 5 of the United States Code, which allows Congress to formally disapprove certain agency rules. By passing this resolution, Congress effectively nullifies the FDIC's rule, meaning it will have no legal effect or enforcement.
Possible Impacts
The legislation disapproving the Federal Deposit Insurance Corporation's rule on "Quality Control Standards for Automated Valuation Models" can affect people in several ways:
1. **Impact on Homebuyers and Mortgage Applicants**: The disapproval of the quality control standards may lead to less reliable automated property valuations. This could result in homebuyers receiving inaccurate appraisals, potentially leading to overpaying for a property or facing difficulties securing a mortgage if lenders are uncertain about the valuation of the property.
2. **Effect on Real Estate Professionals**: Real estate agents and appraisers may experience changes in how property values are assessed. Without these quality control standards, the reliance on automated valuation models (AVMs) might increase, potentially undermining the role of professional appraisers. This could lead to a decrease in business for appraisers or changes in how real estate transactions are conducted.
3. **Consequences for Financial Institutions**: Banks and other financial institutions that use automated valuation models for risk assessment may face increased uncertainty. If the quality controls are lacking, it could heighten the risk of financial losses due to inaccurate valuations, prompting institutions to adopt more conservative lending practices. This could limit credit availability for consumers and impact the housing market overall.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.J. Res. 49 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. J. RES. 49
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''.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 12, 2025
Mr. Clyde submitted the following joint resolution; which was referred
to the Committee on Financial Services
_______________________________________________________________________
JOINT RESOLUTION
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''.
Resolved by the Senate and House of Representatives of the United
States of America in Congress assembled, That Congress disapproves the
rule submitted by the Federal Deposit Insurance Corporation relating to
``Quality Control Standards for Automated Valuation Models'' (89 Fed.
Reg. 64538 (August 7, 2024)), and such rule shall have no force or
effect.
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