---
kind: "section"
citation: "12 C.F.R. § 225.350"
title: "12"
number: "225.350"
heading: "Authority, purpose and scope."
url: "https://uscodex.org/cfr/12/225.350"
---

# §225.350. Authority, purpose and scope.

- (a) **Authority.**
  - (1) **In general.** This subpart is issued pursuant to [section 1125](/cfr/12/1125.md) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, [12 U.S.C. 3354](/usc/12/3354.md), as added by [section 1473(q)](/cfr/12/1473.md?p=q) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. 111-203, 124 Stat. 1376, 2198 (2010)), as well as under the Federal Reserve Act, as amended ([12 U.S.C. 221](/usc/12/221.md) et seq.); the Bank Holding Company Act of 1956, as amended ([12 U.S.C. 1841](/usc/12/1841.md) et seq.); the Home Owners' Loan Act of 1933 ([12 U.S.C. 1461](/usc/12/1461.md) et seq.); [section 165](/cfr/12/165.md) of the Dodd-Frank Wall Street Reform and Consumer Protection Act ([12 U.S.C. 5365](/usc/12/5365.md)); and the International Banking Act of 1978, as amended ([12 U.S.C. 3101](/usc/12/3101.md) et seq.).
  - (2) Nothing in this part shall be read to limit the authority of the Board to take action under provisions of law other than [12 U.S.C. 3354](/usc/12/3354.md), including but not limited to action to address unsafe or unsound practices or conditions, or violations of law or regulation, under section 8 of the Federal Deposit Insurance Act, as amended ([12 U.S.C. 1818](/usc/12/1818.md)).
- (b) **Purpose and scope.**
  - (1) The purpose of this subpart is to implement the quality control standards in [section 3354](/usc/12/3354.md) of title 12 for the use of automated valuation models in determining the value of collateral in connection with making a credit decision or covered securitization determination regarding a mortgage or a mortgage-backed security. This subpart applies to entities and institutions regulated by the Board (Board-regulated institutions) that are mortgage originators or secondary market issuers.
  - (2) **This subpart does not apply to the use of automated valuation models in—**
    - (i) Monitoring of the quality or performance of mortgages or mortgage-backed securities;
    - (ii) Reviews of the quality of already completed determinations of the value of collateral; or
    - (iii) **The development of an appraisal by a certified or licensed appraiser.**

## Notes

### Source

Source: 89 FR 64573, Aug. 7, 2024, unless otherwise noted.

### Authority

Authority: 12 U.S.C. 1817(j)(13), 1818, 1828(o), 1831i, 1831p-1, 1843(c)(8), 1844(b), 1972(1), 3106, 3108, 3310, 3331-3351, 3354, 3906, 3907, and 3909; 15 U.S.C. 1681s, 1681w, 6801 and 6805.

### Source

Source: Reg. Y, 49 FR 818, Jan. 5, 1984, unless otherwise noted.