H.J.Res.51 - 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 Quality Control Standards for Automated Valuation Models. (119th Congress)
Summary
H.J.Res.51 is a joint resolution providing for congressional disapproval of a rule submitted by the Bureau of Consumer Financial Protection (BCFP) concerning Quality Control Standards for Automated Valuation Models (AVMs). The resolution aims to nullify the BCFP rule, which was published in the Federal Register on August 7, 2024. The resolution was introduced in the House of Representatives on February 12, 2025, and referred to the Committee on Financial Services.
This resolution utilizes the Congressional Review Act (CRA), which allows Congress to review and potentially disapprove new agency rules. If passed by both the House and Senate and signed into law, the BCFP's rule would have no force or effect.
The core issue revolves around congressional oversight of regulatory agencies and the standards applied to automated systems used in property valuation.
Expected Effects
If H.J.Res.51 is enacted, the BCFP's rule on Quality Control Standards for AVMs will be invalidated. This would mean that the specific standards outlined in the disapproved rule would not be enforced.
The practical effect would be a rollback to the regulatory environment that existed prior to the implementation of the disapproved rule. This could impact the accuracy and fairness of automated property valuations and potentially affect consumers and the housing market.
Potential Benefits
- Could reduce regulatory burden on financial institutions, potentially lowering costs.
- May allow for more flexible or innovative approaches to property valuation.
- Could prevent unintended consequences or compliance costs associated with the BCFP rule.
- Reinforces congressional oversight of regulatory agencies, promoting accountability.
- Could address concerns that the BCFP rule is overly prescriptive or burdensome.
Most Benefited Areas:
Potential Disadvantages
- Could lead to less rigorous quality control standards for AVMs, potentially increasing the risk of inaccurate property valuations.
- May disproportionately affect consumers, particularly those in underserved communities, who rely on fair and accurate valuations for mortgages and other financial transactions.
- Could undermine efforts to address bias and discrimination in automated valuation processes.
- May create uncertainty in the housing market and increase the risk of financial instability.
- Could weaken consumer protections and increase the potential for predatory lending practices.
Most Disadvantaged Areas:
Constitutional Alignment
The resolution is aligned with the principle of legislative oversight of executive agencies, as established in Article I, Section 1 of the Constitution, which vests all legislative powers in Congress. The Congressional Review Act, under which this resolution is being considered, is a mechanism for Congress to check the power of regulatory agencies.
Furthermore, the resolution does not appear to infringe upon any specific constitutional rights or protections. It primarily concerns economic regulation and the balance of power between the legislative and executive branches.
However, the constitutionality of the Congressional Review Act itself has been debated, particularly concerning its potential impact on the separation of powers. This resolution's constitutionality is tied to the CRA's validity.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).