Agencies Request Comment on Quality Control Standards for Automated Valuation Models Proposed Rule

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Treliant Takeaway:

The extension of mortgage consumer credit and the inclusion of mortgages in covered securitization transactions depends on accurate data. The use and acceptance of Automated Valuation Models (AVMs) in the mortgage origination process has risen and the proposed rule for enhancement of quality control standards related to the use of AVMs in the mortgage industry will bolster confidence in the AVM values used in decision making and will enhance the process around the use of AVMs.

Treliant’s subject matter experts and outsourcing solutions can extend your team to seamlessly and efficiently enhance your AVM process to comply with the proposed rule and prepare you for the future of regulatory compliance in this space. Whether it is program assessment, policy and procedures development, identification of controls, or an ongoing sampling and testing program – let Treliant be your Trusted Advisor.


A group of six federal regulatory agencies (CFPB, FDIC, Federal Reserve, NCUA, FHFA, and the OCC) is seeking comment for its proposed rule for Quality Control Standards for Automated Valuation Models.  The proposed rule would require mortgage originators and secondary marketing issuers to adopt policies, practices, procedures and control systems surrounding the use of AVMs used to determine collateral value. The intent of the rule will be to instill a higher level of confidence in the AVM collateral value estimates, protect against data manipulation and errors, potential conflicts of interest, and fair lending and anti-discrimination risk.

The comment window is 60 days after publication in the Federal Register and the links to where to submit comments along with additional detail about the proposed rule, including types of institutions and transactions that may be impacted can be found here: Notice of Proposed Rulemaking: Quality Control Standards for Automated Valuation Models