Quality Control Standards for Automated Valuation Models

The CFPB, OCC, FRB, FDIC, NCUA, and FHFA adopted a final rule to implement the quality control standards mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act for the use of automated valuation models (AVMs) by mortgage originators and secondary market issuers in determining the collateral worth of a mortgage secured by a consumer's principal dwelling. Under the final rule, institutions that engage in certain credit decisions or securitization determinations must adopt policies, practices, procedures, and control systems to ensure that AVMs used in these transactions to determine the value of mortgage collateral adhere to quality control standards designed to ensure a high level of confidence in the estimates produced by AVMs; protect against the manipulation of data; seek to avoid conflicts of interest; require random sample testing and reviews; and comply with applicable nondiscrimination laws.

Final Rule

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Read in the Federal Register (when available)

Read it on the Federal Register - June 21, 2023

View pdf - June 1, 2023

Agencies Issue Final Rule to Help Ensure Credibility and Integrity of Automated Valuation Models

Director's Notebook

Fast Facts

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