Are you ready for the new AVM quality control standards?

Today, it's more important than ever for lenders to adopt transparent, objective and credible valuation processes that support regulatory expectations. This also includes upholding borrowers’ rights to fair lending.

The evolution of AVMs and regulatory oversight

Advancements in technology and access to richer property data have transformed how valuations are performed. Automated valuation models (AVMs) have become more widely used, offering faster and more consistent property estimates. However, with their growing adoption, federal regulators have increased scrutiny over AVMs.

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which amended Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), introduced four key AVM quality control standards:

A new rule and its implications for lenders

In June 2024, six federal agencies — the CFPB, OCC, FRB, FDIC, NCUA and FHFA — published a new Rule under Dodd-Frank for the use of AVMs. Effective October 1, 2025, this rule implements regulatory quality control standards for AVMs designed to:

Solutions to support compliance with reliable, objective results

To meet these new requirements, lenders and secondary market participants need solutions that provide reliable and objective valuations — with full testing transparency to validate output performance and support regulatory compliance. One effective strategy is using a solution with multiple AVMs. This approach enhances valuation accuracy and consistency, reduces the risk of bias or error, strengthens regulatory compliance and covers a wide range of valuation performance metrics.

Our Property Valuation Model combines multiple ICE AVMs and selects the most appropriate model to use based on factors like property location and user-defined preferences. Each of the individual AVMs relies on the same data but uses different algorithms and techniques when arriving at valuation estimates.

To provide lenders with deep insight into the performance, coverage and accuracy of ICE’s AVMs, we also offer our new AVM Model Monitor. This solution features an intuitive self-service reporting dashboard that delivers unmatched transparency through consistent, ongoing monitoring of all 8 of ICE’s AVMs.

To learn more about how our Property Valuation Model and AVM Model Monitor provides objective and consistent modeling through high-quality data, optimal hit rates, proven methodologies, rigorous testing and overall transparency, click here.