NAR Responds to Proposed Rule on Automated Valuation Models

NAR sent a responsepdf to the joint banking and finance regulators on their proposed joint rule to implement the statute on automated valuation models (AVMs) regulation mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).

In the response, NAR largely agrees with the flexible approach from the regulators, but recommends the regulators:

• Should provide clear guidance for AVM practitioners;
• Consider variations in data quality used by AVMs and how to raise the bar across the market;
• Apply these rules to the government-sponsored enterprise (GSEs);
• Provide more legal clarity around behavior that constitutes bias and should be removed from AVMs;
• Provide consumers with AVM estimates used in their origination transactions.