Under current law, federal agencies that regulate the real estate industry recently set new quality-control standards for the computer models (called automated valuation models) that banks and lenders use to estimate home values. This resolution would block the rule issued by the FDIC (Federal Deposit Insurance Corporation) from taking effect, essentially telling regulators to go back to the drawing board. If it passes, the automated tools lenders use to appraise your home's value would continue operating without the new oversight requirements. It primarily affects homebuyers, homeowners refinancing, and the mortgage industry.
Congressional Summary
This joint resolution nullifies the final rule issued by the Office of the Comptroller of the Currency, the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Consumer Financial Protection Bureau, and the Federal Housing Finance Agency titled Quality Control Standards for Automated Valuation Models and published on August 7, 2024. The rule requires the implementation of quality control standards for automated valuation models used by mortgage originators and secondary market issuers when determining the value of real estate securing a mortgage.
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-02-12
- Date Added
- 2026-04-06