ALEXANDRIA, Va.–NCUA is reminding that credit unions and other stakeholders have until August 21 to submit comments on a proposed rule it said is 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, the agency said.
In addition to NCUA, five other federal regulatory agencies requested public comment on June 1.
What Would be Required
“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 agencies said. “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.”
The proposed rule was published in the Federal Register on June 21, 2023, and has a 60-day comment period, ending August 21, 2023.
For additional info: visit Regulations.gov