Congress blocks Fed safeguards on AI home-valuation models
H.J.Res. 48 — 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". · Filed by Andrew Clyde (R-GA) · Introduced Feb 12, 2025 · Referred to committee
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What it does
This resolution uses the Congressional Review Act to block a Federal Reserve rule requiring quality-control standards for automated home-valuation models. The rule, published in August 2024, would have imposed standards on AI/algorithmic systems used to estimate property values in lending and appraisal. Disapproving it means lenders and appraisers can continue using automated valuation models without the Fed's new quality safeguards.
Why we flagged it
This is a straightforward Congressional Review Act disapproval resolution targeting a specific Federal Reserve rule. It uses the CRA's one-sentence procedural mechanism to block a regulatory standard without amendment or debate. The mechanism is transparent and the effect is deregulatory.
What the text implies
- Disapproving the rule may set a precedent for blocking other Fed AI/algorithmic governance rules, potentially weakening oversight of machine-learning systems across banking and lending.
- Automated valuation models are widely used in mortgage underwriting, appraisal, and secondary-market pricing; removing quality standards may increase systemic risk if defective models propagate valuation errors across the housing market.
- The rule's disapproval may disproportionately harm borrowers in underserved communities if algorithmic bias in valuation models goes unchecked by quality standards.
Section numbers refer to the bill text the analysis read — linked under Primary records below.
Who it affects
Homebuyers and mortgage borrowers lose regulatory protection against defective or biased automated valuation models used to set loan terms and appraisal values. The disapproved rule would have required quality controls; removing it leaves consumers exposed to algorithmic errors that could inflate or deflate property values, affecting loan approval, interest rates, and fair lending.
Who stands to gain
- mortgage lenders and servicers
- automated valuation model vendors
- appraisal management companies
- secondary mortgage market participants
Named in the bill
Board of Governors of the Federal Reserve System, Federal Register (89 Fed. Reg. 64538), Congressional Review Act (5 U.S.C. Chapter 8), automated valuation models (AVMs), mortgage lending industry
Where it stands
- Feb 12, 2025 — Introduced · Congress.gov: “Introduced in House”
- Feb 12, 2025 — Referred to House Committee on Financial Services · Congress.gov: “Referred to the House Committee on Financial Services”
Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.
How this was measured
Analysis — Quorum's AI read the bill text published by Congress.gov (1,154 characters) on Jun 8, 2026. Section numbers in the findings refer to that text, linked below; transparency and hidden-provision scores are compared against the median of 16,222 analysed bills.
Status and sponsors — Congress.gov's bill record — actions, committee referrals and cosponsors — loaded nightly. The timeline shows status changes, not every procedural action.
As of — page rendered 2026-10-20.
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