PRESS RELEASE \| JUNE 1, 2023
**_Board of Governors of the Federal Reserve System_**
**_Consumer Financial Protection Bureau_**
**_Federal Deposit Insurance Corporation_**
**_Federal Housing Finance Agency_**
**_National Credit Union Administration_**
**_Office of the Comptroller of the Currency_**
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**Agencies Request Comment on Quality Control Standards for Automated Valuation Models Proposed Rule**
WASHINGTON, D.C. — Six federal regulatory agencies today requested public comment on a proposed rule designed to ensure the credibility and integrity of models used in real estate valuations. In particular, the proposed rule would implement quality control standards for automated valuation models (AVMs) used by mortgage originators and secondary market issuers in valuing real estate collateral securing mortgage loans.
Under the proposed rule, the agencies would require institutions that engage in covered transactions to adopt policies, practices, procedures, and control systems to ensure that AVMs adhere to quality control standards designed to ensure the credibility and integrity of valuations. The proposed standards are designed to ensure a high level of confidence in the estimates produced by AVMs; help protect against the manipulation of data; seek to avoid conflicts of interest; require random sample testing and reviews; and promote compliance with applicable nondiscrimination laws.
AVMs are used as part of the real estate valuation process, driven in part by advances in database and modeling technology and the availability of larger property datasets. While advances in AVM technology and data availability have the potential to contribute to lower costs and reduce loan cycle times, it is important that institutions using AVMs take appropriate steps to ensure the credibility and integrity of their valuations. It is also important that the AVMs institutions use adhere to quality control standards designed to comply with applicable nondiscrimination laws.
Comments must be received within 60 days of the proposed rule’s publication in the _Federal Register_.
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**ATTACHMENT:**Quality Control Standards for Automated Valuation Models Notice of Proposed Rulemaking (https://fdic.gov/news/press-releases/2023/pr23045a.pdf?source=govdelivery&utm_medium=email&utm_source=govdelivery)
**MEDIA CONTACTS:**
CFPB
Mike Robinson
(202) 597-4022
FDIC
Julianne Fisher Breitbeil
(202) 898-6895
Federal Reserve
Laura Benedict
(202) 452-2955
FHFA
Adam Russell
(202) 360-9097
NCUA
Joseph Adamoli
(703) 518-6572
OCC
Stephanie Collins
(202) 649-6870
**FDIC: PR-45-2023**
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