NCUA and other federal financial regulators issued a final rule Wednesday implementing quality control standards for automated valuation models (AVMs).
The final rule requires institutions that engage in certain transactions secured by a consumer’s principal dwelling adopt policies, practices, procedures, and control systems designed to:
- Ensure a high level of confidence in estimates;
- Protect against data manipulation;
- Seek to avoid conflicts of interest;
- Require random sample testing and reviews; and
- Comply with nondiscrimination laws.
America’s Credit Unions’ Compliance Team analyzed the rule in a recent Compliance Blog entry and will provide a Final Regulation Alert in the coming days.
The final rule will become effective on the first day of the calendar quarter 12 months after publication in the Federal Register.
