Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Board of Governors of the Federal Reserve System relating to "Quality Control Standards for Automated Valuation Models".

Bill Number: H.J.Res. 48
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: 2026-04-06T21:19:43Z

AI-Generated Summary

Purpose

This joint resolution (H.J. Res. 48) aims to block a new rule issued by the Federal Reserve Board that establishes quality control standards for automated valuation models (AVMs). AVMs are computer-based tools used to estimate real estate property values, often in mortgage lending. The resolution uses the Congressional Review Act—a law allowing Congress to review and overturn certain federal agency rules—to prevent the rule from taking effect.

Key Provisions

Disapproval of the Rule: Congress explicitly disapproves the Federal Reserve's rule titled "Quality Control Standards for Automated Valuation Models," published in the Federal Register on August 7, 2024 (89 Fed. Reg. 64538).
Nullification: If enacted, the rule would have no legal force or effect, meaning the standards it sets could not be enforced.

Significant Changes to Existing Law

This resolution would reverse the Federal Reserve's attempt to implement new mandatory standards for AVMs, which were designed to ensure accuracy, transparency, and fairness in property valuations (e.g., to reduce bias or errors in appraisals).
It does not create new laws but invokes the Congressional Review Act to override an administrative rule, effectively maintaining the status quo before these standards were proposed. Previously, AVMs were used without these specific federal quality controls, though general fair lending laws still apply.

Potential Impacts

On Government Agencies: The Federal Reserve would lose authority to enforce this rule, potentially limiting its role in regulating financial technology tools. Other agencies involved in housing finance (like the Federal Housing Finance Agency) might face similar scrutiny if their related rules are challenged.
On Citizens: Homebuyers and borrowers could see continued use of AVMs without the new safeguards, which might lead to faster but potentially less reliable property valuations in mortgage processes. This could affect access to credit or property prices, especially in underserved communities where appraisal biases have been a concern.
On International Relations: Minimal direct impact, as the rule focuses on domestic real estate and lending practices.

Main Stakeholders Affected

Financial Institutions and Lenders: Banks and mortgage companies that rely on AVMs for quick property assessments would avoid new compliance requirements, potentially reducing costs but increasing risks of inaccurate valuations.
Real Estate and Appraisal Industry: Appraisers and tech firms developing AVMs could benefit from less regulation, though it might heighten concerns about market fairness.
Consumers and Borrowers: Individuals seeking mortgages or home loans, particularly in minority or low-income areas, as the rule aimed to address potential discrimination in automated appraisals.
Federal Reserve Board: Directly challenged, this could influence its future rulemaking on financial innovations.

Notable Legal, Constitutional, or Political Implications

Legal: Relies on the Congressional Review Act (enacted in 1996), which gives Congress a 60-day window to disapprove rules via a simple majority vote (no presidential veto override needed if passed quickly). If successful, the rule cannot be reissued in substantially similar form without new congressional authorization, strengthening legislative oversight of agencies.
Constitutional: Highlights the separation of powers, as it asserts Congress's authority to check executive branch agencies like the Federal Reserve (an independent body created by Congress).
Political: Introduced by Rep. Clyde (R-GA) and referred to the House Financial Services Committee on February 12, 2025, this reflects partisan efforts to curb federal regulations on emerging tech in finance. It could signal broader Republican pushback against Biden-era rules, potentially affecting housing policy debates in the 119th Congress.

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 Board of Governors of the Federal Reserve System relating to "Quality Control Standards for Automated Valuation Models". — issued 2025-02-12 — PDF (2 pages)