Regulatory Alerts2024-08-07 | 2024-16197Added · Updated
Quality Control Standards for Automated Valuation Models
The OCC, Board, FDIC, NCUA, CFPB, and FHFA issued a final rule implementing Dodd-Frank Act mandates for quality control standards regarding automated valuation models used by mortgage originators and secondary market issuers. The rule requires institutions to adopt policies and control systems ensuring AVM estimates are reliable, data is protected from manipulation, conflicts of interest are avoided, and nondiscrimination laws are complied with. Effective October 1, 2025, the regulation applies to AVMs used in credit decisions and covered securitization determinations for mortgages secured by a consumer's principal dwelling.
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