Summary of Final Rule: Quality Control Standards for Automated Valuation Models (AVMs)
Updated 05/05/2025
On August 7, 2024, the Federal Reserve Board (FRB), the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), the Federal Housing Finance Agency (FHFA), and the Consumer Financial Protection Bureau (CFPB) issued a final rule establishing quality control standards for Automated Valuation Models (AVMs). The rule is designed to enhance the reliability of AVM-generated valuations and ensure compliance with the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989. The rule requires mortgage originators and secondary market participants to implement quality control policies, practices, and procedures when using AVMs to determine the value of real estate collateral securing a mortgage.
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