Bill Summary
The joint resolution provides for congressional disapproval of a specific rule issued by the Bureau of Consumer Financial Protection (CFPB). This rule pertains to "Quality Control Standards for Automated Valuation Models," which are methodologies used to estimate property values, often in the context of mortgage lending and real estate. The resolution states that Congress officially disapproves of this rule, which means it will not be enforced or implemented. This action reflects Congress's authority under Chapter 8 of Title 5 of the United States Code, allowing it to reject certain regulatory actions taken by federal agencies.
Possible Impacts
The disapproval of the rule relating to "Quality Control Standards for Automated Valuation Models" (AVMs) by Congress could affect people in several ways:
1. **Impact on Homebuyers and Sellers**: The lack of quality control standards for AVMs may lead to less accurate property valuations. Homebuyers could face inflated costs if properties are overvalued, while sellers might struggle to realize the true market value of their homes. This could create confusion and mistrust in the real estate market.
2. **Increased Risk in Lending Practices**: Without established quality control standards, lenders using AVMs to assess property values could encounter higher risks of making poor lending decisions. This might lead to more defaults on loans, ultimately affecting both consumers and financial institutions, and potentially contributing to broader economic instability.
3. **Regulatory Uncertainty and Market Confidence**: The disapproval of the rule could create uncertainty in the real estate and financial markets. Investors and stakeholders may become hesitant to engage in transactions involving AVMs, fearing that the lack of regulatory oversight could lead to market volatility or unfair practices. This could hinder innovation in the valuation technology landscape, impacting those who rely on these services.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.J. Res. 51 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. J. RES. 51
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''.
_______________________________________________________________________
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 Bureau of Consumer
Financial Protection 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 Bureau of Consumer Financial Protection 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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