AVM USE FOR LOAN ORIGINATION
Final automated valuation model rule published by 6 regulators.
On June 20, 2024, a group of federal regulators published a rule addressing the use of automated valuation models (AVMs) in mortgage origination and secondary market transactions.
The rule has to do with implementation of quality control standards for the use of automated valuation models (AVMs) by mortgage originators and secondary market issuers.
What are the important items to know:
- New rule effective date is July 1, 2025
- Workflows effected: Mods, Securitizations, HELOCs/2nd lien origination, Refi's
- Thorough Vendor management oversight
- Proof for removal of bais
- No conflict of interests is allowed
While there are no exact implementation details on how to implement the business procedures for the rule updates, I would imagine the new rule will result in AVM certifications as well as additional borrower disclosures.
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Final automated valuation model rule published by 6 regulators.
On June 20, 2024, a group of federal regulators published a rule addressing the use of automated valuation models (AVMs) in mortgage origination and secondary market transactions.
The rule has to do with implementation of quality control standards for the use of automated valuation models (AVMs) by mortgage originators and secondary market issuers.
What are the important items to know:
- New rule effective date is July 1, 2025
- Workflows effected: Mods, Securitizations, HELOCs/2nd lien origination, Refi's
- Thorough Vendor management oversight
- Proof for removal of bais
- No conflict of interests is allowed
While there are no exact implementation details on how to implement the business procedures for the rule updates, I would imagine the new rule will result in AVM certifications as well as additional borrower disclosures.
Our social networks:
• Youtube
• Protitleusa.com