H.J.Res.52 - Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Federal Housing Finance Agency relating to Quality Control Standards for Automated Valuation Models. (119th Congress)
Summary
H.J.Res.52 is a joint resolution providing for congressional disapproval of a rule submitted by the Federal Housing Finance Agency (FHFA) concerning Quality Control Standards for Automated Valuation Models (AVMs). The resolution aims to nullify the FHFA rule, preventing it from taking effect. The rule in question is referenced as 89 Fed. Reg. 64538 (August 7, 2024).
Expected Effects
If enacted, H.J.Res.52 would prevent the FHFA's rule on Quality Control Standards for AVMs from being implemented. This would maintain the existing regulatory landscape concerning AVMs, at least temporarily, until further action is taken by the FHFA or Congress. The impact would primarily affect the housing and financial sectors, particularly those involved in property valuation and mortgage lending.
Potential Benefits
- Potentially avoids unintended consequences of the FHFA rule on housing markets.
- Allows for further scrutiny and debate regarding the appropriateness of the Quality Control Standards for AVMs.
- May prevent disruptions to existing valuation processes used in mortgage lending.
- Could protect smaller institutions that may struggle to comply with new regulatory burdens.
- Provides Congress with an opportunity to assert its oversight role in financial regulation.
Potential Disadvantages
- May delay improvements in the accuracy and reliability of AVMs.
- Could perpetuate existing biases or inaccuracies in property valuations.
- Might hinder innovation in the development and use of AVM technology.
- May prevent the FHFA from addressing potential risks associated with AVMs.
- Could create uncertainty in the housing market if the future of AVM regulation remains unclear.
Constitutional Alignment
This resolution aligns with the principle of legislative oversight, as Congress is exercising its power to review and potentially disapprove an agency rule. Article I, Section 1 of the Constitution vests all legislative powers in Congress, which includes the power to make laws and oversee the implementation of those laws by executive agencies. The Congressional Review Act (chapter 8 of title 5, United States Code), cited in the resolution, provides a specific mechanism for Congress to disapprove agency rules.
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).