§722.203. Quality control standards.
12 C.F.R. § 722.203
Mortgage originators and secondary market issuers that engage in credit decisions or covered securitization determinations themselves, or through or in cooperation with a third-party or affiliate, must adopt and maintain policies, practices, procedures, and control systems to ensure that automated valuation models used in these transactions adhere to quality control standards designed to:
Ensure a high level of confidence in the estimates produced;
Protect against the manipulation of data;
Seek to avoid conflicts of interest;
Require random sample testing and reviews; and
Comply with applicable nondiscrimination laws.
Notes, amendments, and revision history
Source
Source: 89 FR 64576, Aug. 7, 2024, unless otherwise noted.
Authority
Authority: 12 U.S.C. 1766, 1789, and 3331 et seq. Section 722.3(a) is also issued under 15 U.S.C. 1639h.
Source
Source: 55 FR 30207, July 25, 1990, unless otherwise noted.