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 "Application of Regulation Z's Ability-To-Repay Rule to Certain Situations Involving Successors-In-Interest".
- Bill Number
- H.J.Res. 163
- 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
- 2026-05-02T03:33:35Z
AI-Generated Summary
Purpose
This joint resolution (H.J. Res. 163) uses the Congressional Review Act (CRA)—a law allowing Congress to overturn certain federal agency rules—to block a decision by the Bureau of Consumer Financial Protection (CFPB). Specifically, it disapproves the CFPB's 2025 action to withdraw a 2014 rule that protected certain people who inherit home loans (known as "successors-in-interest").
Key Provisions
- Congress formally disapproves the CFPB rule published on May 12, 2025 (90 Fed. Reg. 20084), which withdrew the 2014 clarification (79 Fed. Reg. 41631).
- The withdrawn rule clarified how Regulation Z's ability-to-repay requirements apply to successors-in-interest. (Regulation Z is a set of federal rules under the Truth in Lending Act requiring lenders to verify a borrower's ability to repay certain home loans before approving them.)
- Once passed, the disapproval makes the CFPB's withdrawal rule have no force or effect, effectively reinstating the 2014 protections.
Significant Changes to Existing Law
- Reverses the CFPB's withdrawal, preserving the 2014 rule's application of ability-to-repay checks to successors-in-interest (e.g., family members assuming a deceased relative's mortgage).
- No new rules are created; it simply prevents the removal of existing consumer protections.
Potential Impacts
- On government agencies: Limits CFPB's authority to modify its own rules via withdrawal, subjecting such actions to congressional oversight under the CRA.
- On citizens: Maintains protections for successors-in-interest, ensuring lenders must assess their ability to repay before modifying inherited loans, potentially reducing risky lending.
- On financial institutions: Lenders must continue complying with the 2014 rule, which could increase verification requirements for loan assumptions.
- No direct impact on international relations.
Main Stakeholders
- Consumers: Especially successors-in-interest (e.g., heirs inheriting mortgages), who gain continued safeguards against unaffordable loans.
- Lenders and financial institutions: Mortgage servicers and banks affected by ongoing compliance obligations.
- CFPB: Faces overridden authority on rule changes.
- Congress: Exercises oversight via the CRA.
Notable Legal, Constitutional, or Political Implications
- Legal: Demonstrates the CRA's power, including its "lookback" window allowing review of recently issued rules; reinforces Congress's role in checking executive agency actions.
- Constitutional: Aligns with separation of powers by enabling legislative veto of agency rulemaking without presidential signature (if passed by both chambers).
- Political: Highlights partisan or ideological divides on consumer financial protections, as it was introduced in the House and referred to the Financial Services Committee; could set precedent for future CRA use against agency withdrawals.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
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 "Application of Regulation Z’s Ability-To-Repay Rule to Certain Situations Involving Successors-In-Interest". — issued 2026-04-30 — PDF (2 pages)