CFPB Begins AVM Quality Control Process, Releases Outline of Proposed Rules

The Consumer Financial Protection Bureau in late February took the first step in its long-awaited process to implement quality control standards for its automated valuation model, which was mandated by the Dodd-Frank Act of 2010.

The CFPB on Feb. 23 released an outline of its proposed rules to a Small Business Review Panel, as required under Federal law when a program could have a significant effect on a substantial number of small entities. The outline contains a series of questions to AVM users and stakeholders. The Small Business Review Panel is considering the responses it received by the May 13 comment period and then will release the proposed rule on an interagency basis to the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corp., National Credit Union Administration and the Federal Housing Finance Agency.