12 USC 3354 - Automated valuation models used to estimate collateral value for mortgage lending purposes

U.S Code last checked for updates: Nov 22, 2024

§ 3354.

Automated valuation models used to estimate collateral value for mortgage lending purposes

(a)

In general

Automated valuation models shall adhere to 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 listed in subsection (b) determine to be appropriate.

(b)

Adoption of regulations

(c)

Enforcement

Compliance with regulations issued under this subsection shall be enforced by—

(1)

with respect to a financial institution, or subsidiary owned and controlled by a financial institution and regulated by a Federal financial institution regulatory agency, the Federal financial institution regulatory agency that acts as the primary Federal supervisor of such financial institution or subsidiary; and

(2)

with respect to other participants in the market for appraisals of 1-to-4 unit single family residential real estate, the Federal Trade Commission, the Bureau of Consumer Financial Protection, and a State attorney general.

(d)

Automated valuation model defined

(Pub. L. 101–73, title XI, § 1125, as added Pub. L. 111–203, title XIV, § 1473(q), July 21, 2010, 124 Stat. 2198.)

cite as: 12 USC 3354