Are your property valuation tools ready for what’s next?

The real estate and mortgage market is in a constant state of flux, with even more changes to come in 2025. Lenders are actively preparing for new quality control standards that will take effect on October 1, 2025, requiring greater transparency in how automated valuation models (AVMs) determine property values to deliver unbiased results.

These new standards build on the four existing quality control standards established by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which amended the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA). These original “core four” standards focus on accuracy, data integrity, objectivity, and random testing and review.

With these quality control standards, institutions involved in certain credit decisions or securitization activities are now required to implement policies, procedures and control systems to help ensure the AVMs used in these transactions meet high standards of reliability.

Specifically, AVMs must:

How using multiple AVMs can better support regulatory compliance

ICE’s new valuation solution, Property Valuation Model, equips users with a robust tool built on proven methodologies and advanced modeling techniques to deliver consistent, objective and credible results.

The solution combines eight ICE AVMs, each with distinct performance metrics, to select the most appropriate model output based on important valuation factors like geography and key property features such as property type. Since AVM performance can vary by region, the waterfall model adapts by applying different sequences of AVMs tailored to specific geographies (States and Counties).

To further enhance accuracy, the Property Valuation Model includes configurable logic that allows users to apply custom business rules – minimum confidence scores, for example – ensuring optimal performance aligned with specific organizational needs.

In addition, ICE conducts daily AVM testing and reviews its models monthly to maintain best-in-class quality and credibility, helping lenders and real estate professionals quickly identify property value and available equity, enabling more informed decisions early in the workflow.

Be prepared for what’s next

Watch our webinar, Valuation solutions to address today’s challenges and tomorrow’s advancements, featuring ICE valuation experts Damien Weldon, Director of Product Management for Valuation Analytics, and Webster Royston, Senior Manager of Product Management for Valuation Analytics. In this session, they dive deeper into: