Federal regulators recently created new quality-control rules for the computer models banks use to estimate home values when you apply for a mortgage. This resolution would block the version of that rule issued by the CFPB (Consumer Financial Protection Bureau), preventing it from taking effect. Homebuyers and anyone refinancing a mortgage could be affected, since these automated valuation tools play a growing role in determining how much your home is worth — and how much you can borrow against it.
Average Household Impact
- CFPB quality-control rule for automated valuation models — August 2024 rule on appraisal-software accuracy and bias safeguards nullified for homebuyers and refinancers
Corporate Benefits
- Compliance burden on lenders and AVM vendors — CFPB quality-control standards no longer apply to automated home-valuation models
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
- Source
- Congress.gov →
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