As a leading provider of automated valuation models (AVMs), Veros Real Estate Solutions (Veros®) is committed to delivering top-tier solutions to the real estate and mortgage industry. With the recent introduction of the June 2024 federal agencies’ quality control standards, maintaining compliance is more crucial than ever. To assist our clients and partners, we are proud to offer the “VeroVALUE Automated Valuation Models: Federal Agency Quality Control Standards Compliance Guide.” This resource is designed to address common questions and provide essential guidance on the new rules.
Understanding the Importance of Compliance
For lenders and investors, understanding and adhering to these new regulations is not just a matter of following protocol—it’s a commitment to excellence and consumer protection. Compliance extends beyond the information provided by AVMs like Veros’ VeroVALUE; it encompasses how this information is evaluated, integrated, and applied within the broader lending process.
Lenders and investors are responsible for validating AVM performance data and related claims, ensuring they meet the highest standards of accuracy and reliability. This validation process involves comparing due diligence data with internal production experience, using appropriately sized samples and geographically relevant data. By doing so, stakeholders can better safeguard against risks and fulfill their duties to both consumers and internal risk management teams.
Background on the June 2024 Federal Agency Quality Control Standards
On June 20, 2024, several federal agencies, including the Office of the Comptroller of the Currency (OCC), Federal Reserve Board, FDIC, NCUA, CFPB, and FHFA, adopted a final rule under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). This rule pertains specifically to the use of AVMs by mortgage originators and secondary market issuers in determining the collateral worth of a consumer’s principal dwelling.
The new quality control standards are designed to ensure that:
- AVMs produce high-confidence estimates.
- Data manipulation is prevented.
- Conflicts of interest are avoided.
- Random sample testing and review are conducted.
- All applicable nondiscrimination laws are followed.
These regulations are a significant step forward in maintaining the integrity and reliability of AVMs, ensuring that all industry players adhere to rigorous standards.
Veros' Commitment to Compliance
Veros is proud to announce that our VeroVALUE Automated Valuation Model is fully compliant with all standards outlined in the June 2024 rule. Our unwavering commitment to quality and regulatory adherence ensures that lenders, investors, and other stakeholders can continue to rely on VeroVALUE for accurate, reliable, and compliant AVM services.
We invite you to download our comprehensive guide to better understand how VeroVALUE meets these new regulatory requirements.
Click here to download the guide!
Staying informed and compliant is essential in today’s ever-evolving regulatory landscape. With Veros and VeroVALUE, you can be confident in your AVM solutions, knowing they meet the highest standards of quality and compliance.
