6 US regulatory bodies, including the Federal Reserve, finalized a rule under the Dodd-Frank Act to establish quality control standards for automated valuation models (AVMs) in mortgage valuations.

Six US regulatory bodies, including the Federal Reserve, have finalized a rule under the Dodd-Frank Act to ensure the credibility and integrity of automated valuation models (AVMs) used for certain mortgage valuations. The rule will establish quality control standards for AVMs employed by mortgage originators and secondary market issuers in valuing homes, requiring institutions to adopt policies, practices, procedures, and control systems to ensure compliance with applicable nondiscrimination laws. The final rule will take effect 12 months after its publication in the Federal Register.