Regulators evaluating AVM usage
Published by: Sean Brown
September 6, 2023 | Regulatory
Nothing drives member satisfaction quite like speedy and seamless service offerings. That is why the League provided commentary on the National Credit Union Administration’s review of the quality control standards for automated valuation models (AVMs). Your credit unions’ ability to move members effectively and efficiently through the appraisal and mortgage processes is a critical component to providing people-first services. The League advocated for narrowly tailored rules that will neither further dilute or complicate a process that is currently working in practice, nor stifle technology usage in the financial services marketplace. The League understands the intent of the proposed rule is to ensure a high level of confidence in the estimates produced by AVMs, protect against the manipulation of data, avoid conflicts of interest, require random sample testing and reviews, and comply with applicable nondiscrimination laws; however, the proposed benefits cannot be so heavily outweighed by the burden placed on already prudentially regulated, member-owned financial cooperatives.
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