Regulatory Alerts2023-06-21 | 2023-12187Quality Control Standards for Automated Valuation Models
The OCC, Board, FDIC, NCUA, CFPB, and FHFA propose rules to implement Dodd-Frank Act mandates for quality control standards governing automated valuation models used in mortgage lending. The proposed regulations require institutions to adopt policies and procedures ensuring AVM estimates are reliable, data is protected from manipulation, and conflicts of interest are avoided. Additionally, the rule mandates random sample testing, reviews, and compliance with applicable nondiscrimination laws for covered AVMs.
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