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".
- Bill Number
- H.J.Res. 47
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-02-12: Referred to the House Committee on Financial Services.
- Last Updated
- 2026-04-06T21:18:49Z
AI-Generated Summary
Summary of H.J. Res. 47
Purpose
This joint resolution aims to block a specific federal rule issued by the Office of the Comptroller of the Currency (OCC), a government agency that regulates national banks. The rule in question sets standards for ensuring the accuracy and fairness of automated valuation models (AVMs), which are computer-based tools used to estimate real estate property values, often in mortgage lending processes.
Key Provisions
- The resolution formally disapproves the OCC rule titled "Quality Control Standards for Automated Valuation Models," published in the Federal Register on August 7, 2024 (89 Fed. Reg. 64538).
- It invokes the Congressional Review Act (a law under chapter 8 of title 5 of the U.S. Code), which allows Congress to review and overturn certain agency rules.
- If passed, the rule would be rendered void and have no legal effect, preventing its enforcement.
Significant Changes to Existing Law
- This resolution would not create new laws but would nullify the OCC's rule before it takes full effect, effectively maintaining the pre-existing regulatory framework for AVMs without these new quality control requirements.
- It leverages the Congressional Review Act to override an executive branch action, highlighting Congress's authority to check agency rulemaking without needing presidential approval (if passed by both chambers and not vetoed).
Potential Impacts
- On Government Agencies: The OCC would lose authority to enforce this rule, potentially limiting its ability to standardize AVM practices across the banks it oversees. This could lead to broader debates on federal regulatory power in financial sectors.
- On Citizens: Borrowers and homebuyers might experience unchanged or less standardized property valuation processes in mortgages, which could affect loan approvals, interest rates, or fairness in appraisals (e.g., reducing risks of biased or inaccurate valuations that the rule aimed to address).
- On International Relations: No direct impacts, as this is a domestic financial regulation issue.
- Overall, it could slow the adoption of modern standards for technology in lending, potentially increasing risks of errors in real estate transactions.
Main Stakeholders Affected
- Financial Institutions: National banks and lenders regulated by the OCC, who would avoid new compliance costs and requirements for their AVM systems.
- Real Estate and Mortgage Industry: Appraisers, software providers for AVMs, and housing market participants, who might face delayed updates to valuation practices.
- Consumers and Borrowers: Individuals seeking home loans, potentially benefiting from less regulation (e.g., faster processes) but facing higher risks from unstandardized valuations.
- Congress and Regulators: Lawmakers (especially those on the House Financial Services Committee) and the OCC, influencing the balance of power between legislative and executive branches.
Notable Legal, Constitutional, or Political Implications
- Legal: Reinforces the Congressional Review Act as a tool for quick reversal of agency rules, ensuring they do not become permanent without congressional input. The rule's nullification would prevent potential legal challenges to its implementation.
- Constitutional: Underscores the separation of powers, with Congress asserting its oversight role over executive agencies to maintain checks and balances.
- Political: Introduced by Rep. Clyde (R-GA) and referred to the House Financial Services Committee, it reflects partisan efforts to curb federal regulations perceived as burdensome, potentially sparking debates on financial oversight during economic or housing market fluctuations. No broader constitutional crises are implied, but it could set precedents for future rule reversals.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Clyde, Andrew S. [R-GA-9]
Recent Actions
- 2025-02-12: Referred to the House Committee on Financial Services.
- 2025-02-12: Introduced in House
- 2025-02-12: Introduced in House
Bill Versions
- 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". — issued 2025-02-12 — PDF (2 pages)