---
kind: "section"
citation: "12 U.S.C. § 3354"
title: "12"
title_heading: "Banks and Banking"
number: "3354"
heading: "Automated valuation models used to estimate collateral value for mortgage lending purposes"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/3354"
units:
  - "Chapter 34A — Appraisal Subcommittee of Federal Financial Institutions Examination Council"
---

# §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)](#b) determine to be appropriate.
- (b) **Adoption of regulations—** The [Board](/usc/12/1861.md?p=b-3), the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National [Credit](/usc/12/5481.md?p=7) Union Administration [Board](/usc/12/1861.md?p=b-3), the Federal Housing Finance Agency, and the [Bureau](/usc/12/5481.md?p=2) of [Consumer](/usc/12/5481.md?p=4) Financial Protection, in consultation with the staff of the [Appraisal Subcommittee](/usc/12/3350.md?p=2) and the Appraisal Standards [Board](/usc/12/1861.md?p=b-3) of the [Appraisal Foundation](/usc/12/3350.md?p=9), shall promulgate regulations to implement the quality control standards required under this section.
- (c) **Enforcement—** Compliance with regulations issued under this subsection shall be enforced by—
  - (1) with respect to a [financial institution](/usc/12/3350.md?p=7), or subsidiary owned and controlled by a [financial institution](/usc/12/3350.md?p=7) and regulated by a Federal [financial institution](/usc/12/3350.md?p=7) regulatory agency, the Federal [financial institution](/usc/12/3350.md?p=7) regulatory agency that acts as the primary Federal supervisor of such [financial institution](/usc/12/3350.md?p=7) or subsidiary; and
  - (2) with respect to other participants in the market for appraisals of 1-to-4 unit single family residential [real estate](/usc/12/1707.md?p=g), the Federal Trade Commission, the [Bureau](/usc/12/5481.md?p=2) of [Consumer](/usc/12/5481.md?p=4) Financial Protection, and a [State](/usc/12/1707.md?p=d) attorney general.
- (d) **Automated valuation model defined—** For purposes of this section, the term “automated valuation model” means any computerized model used by [mortgage](/usc/12/1707.md?p=a) originators and secondary market issuers to determine the collateral worth of a [mortgage](/usc/12/1707.md?p=a) secured by a [consumer](/usc/12/5481.md?p=4)’s principal dwelling.

## Source credit

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

## Notes

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective on the date on which final regulations implementing such section take effect, or on the date that is 18 months after the designated transfer date if such regulations have not been issued by that date, see section 1400(c) of Pub. L. 111–203, set out as an Effective Date of 2010 Amendment note under section 1601 of Title 15, Commerce and Trade.