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 the withdrawal of the rule relating to "Truth in Lending (Regulation Z); Consumer Protections for Home Sales Financed Under Contracts for Deed".

Bill Number

H.J.Res. 162

Origin Chamber

House

Congress

119th Congress, Session 2

Status

Introduced

Latest Action

2026-04-30: Referred to the House Committee on Financial Services.

Last Updated

2026-05-01T08:48:42Z

AI-Generated Summary

Purpose

This joint resolution (H.J. Res. 162) uses the Congressional Review Act (a law allowing Congress to overturn certain federal agency rules) to block the Bureau of Consumer Financial Protection (CFPB) from withdrawing its earlier rule. That earlier rule added consumer protections under the Truth in Lending Act (Regulation Z) for home sales financed through "contracts for deed"—a type of seller-financed home purchase where buyers make payments directly to sellers over time, without a bank loan, and risk losing the home if they miss payments.

Key Provisions

• Congress explicitly disapproves the CFPB's May 12, 2025, rule (90 Fed. Reg. 20084) that sought to withdraw the August 23, 2024, consumer protection rule (89 Fed. Reg. 68086).
• The withdrawal rule is declared to have no force or effect, meaning it cannot be enforced.

Significant Changes to Existing Law

• Prevents the removal of the 2024 CFPB rule, keeping its protections in place (e.g., requirements for sellers to disclose risks and terms clearly to buyers).
• Under the Congressional Review Act, the CFPB cannot reissue a substantially similar withdrawal rule without new congressional approval.

Potential Impacts

• Government agencies: Limits CFPB's ability to roll back its own regulations, potentially increasing its enforcement workload on contracts for deed.
• Citizens: Maintains safeguards for homebuyers (often low-income or minority communities) using contracts for deed, reducing risks like hidden fees or foreclosure without due process.
• No direct impact on international relations.
• Could lead to more oversight of seller-financed deals, affecting rural or underserved housing markets.

Main Stakeholders Affected

• Homebuyers under contracts for deed: Gain continued protections against predatory terms.
• Sellers and private lenders: Face ongoing disclosure and compliance requirements, potentially limiting use of these financing methods.
• CFPB: Retains regulatory authority but loses flexibility to withdraw the rule.
• Financial services industry: Indirectly affected through enforcement of lending disclosures.

Notable Legal, Constitutional, or Political Implications

• Legal: Invokes Congress's oversight power under the Congressional Review Act, reinforcing legislative check on executive agency actions (no new laws created, just rule nullification).
• Constitutional: Aligns with separation of powers by allowing Congress to review agency rulemaking.
• Political: Highlights partisan divides on consumer finance regulation; introduced by Rep. Cleaver (D-MO) and referred to the House Financial Services Committee, signaling potential floor debate if advanced.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Cleaver, Emanuel [D-MO-5]

Recent Actions

• 2026-04-30: Referred to the House Committee on Financial Services.
• 2026-04-30: Introduced in House
• 2026-04-30: Introduced in House

Bill Versions

• 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 the withdrawal of the rule relating to "Truth in Lending (Regulation Z); Consumer Protections for Home Sales Financed Under Contracts for Deed". — issued 2026-04-30 — PDF (2 pages)