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".

Summary of the Bill

This bill is a resolution of disapproval, which is a tool Congress can use to overturn a regulation created by a federal agency. In this case, Congress is seeking to cancel a rule made by the Federal Reserve (the nation's central bank) that established quality control standards for something called "automated valuation models." These are computer-based tools that estimate the value of properties — such as homes — often used by banks and mortgage lenders when making lending decisions, instead of or in addition to traditional in-person appraisals.

The Federal Reserve's rule set standards to ensure these automated property valuation tools are accurate, fair, and reliable. By passing this disapproval resolution, Congress would essentially strike down those standards, preventing them from taking effect. Under the Congressional Review Act (the law that allows this process), if the rule is successfully disapproved, the agency would also be blocked from issuing a substantially similar rule in the future unless Congress specifically authorizes it.

This bill would primarily affect the mortgage and real estate industries, as well as consumers who buy or refinance homes. Lenders and financial institutions that use automated tools to estimate home values would no longer need to follow the quality control requirements the Federal Reserve had put in place. For homebuyers and homeowners, the impact would depend on whether removing these standards leads to changes in how accurately and fairly their properties are valued during the lending process. The bill has been referred to the House Committee on Financial Services for consideration.