This bill disapproves a rule issued by the Federal Housing Finance Agency regarding quality control standards for automated valuation models. Disapproval means the rule will not go into effect.
Andrew Clyde
Representative
GA-9
This bill disapproves and nullifies a rule issued by the Federal Housing Finance Agency regarding quality control standards for automated valuation models used in housing appraisals. By disapproving this rule, Congress prevents it from taking effect.
Congress Scraps New Federal Rule on Automated Home Value Estimates
The Federal Housing Finance Agency (FHFA) put out a rule about quality control for those computer programs that estimate house prices—Automated Valuation Models (AVMs). This bill wipes that rule off the books. Basically, Congress said, "Nah, we're not doing that."
What's the Deal with Digital Appraisals?
The FHFA was trying to set some standards for AVMs, those algorithms that spit out property values. Think Zillow's Zestimate, but for official stuff like loans and real estate deals. This bill (H.J.Res.124) stops those standards from going into effect, meaning whatever the FHFA was planning, it's not happening.
Real-World Rollout - Or Not
Since the rule is blocked, there's no rollout. The FHFA's plan is on ice. We don't know the specifics of what quality control standards were proposed – were they about checking for bias, making sure the data was accurate, or something else? The bill doesn't say, and that makes it hard to know exactly what we're not getting.
Who Feels This?
It's a bit of a guessing game without knowing the rule's details. If, for example, you're a homeowner and the scrapped rule would have made AVMs more accurate, this could mean your house might be valued a little wonkier down the line. If you're a lender who thought the FHFA's rule was a pain, you might be relieved. If the rule was going to make AVMs less biased, then blocking it might keep some unfairness in the system (though we don't know if that was the case). The truth is, it's hard to put your finger on it exactly without the specifics of the original rule.
The Bigger Picture
This fits into the whole debate about how much we trust computers to do human jobs. AVMs are faster and cheaper than traditional appraisals, but are they as good? That's the question, and by blocking this rule, Congress is basically saying, "Let's not change the rules of the game just yet." It also touches on the whole "who regulates the regulators" thing—Congress has the power to undo rules from agencies like the FHFA, and they just used it.