Small Business Review Panel on Automated Valuation Model (AVM) Rulemaking
In the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), Congress directed the Consumer Financial Protection Bureau (CFPB), along with the Board of Governors of the Federal Reserve System (Board), the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), and the Federal Housing Finance Agency (FHFA), to develop regulations for quality control standards for automated valuation models.
Specifically, the Dodd-Frank Act added section 1125 to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA); that section requires that AVMs meet quality control standards designed to: (1) ensure a high level of confidence in the estimates produced by automated valuation models; (2) protect against the manipulation of data; (3) seek to avoid conflicts of interest; (4) require random sample testing and reviews; and (5) account for any other such factor that the agencies determine to be appropriate. Under the process established by Congress in the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), the CFPB is required to consult with representatives of small entities likely to be affected directly by the regulations the CFPB is considering proposing and to obtain feedback on the likely impacts the rules the CFPB is considering would have on small entities.
Panel documents
Outline of Proposals and Alternatives Under Consideration