On October 1, 2025, the interagency final rule implementing quality control standards for automated valuation models (“AVMs”) became effective. The rule requires the adoption and maintenance of policies, practices, procedures, and control systems for the use of AVMs by mortgage originators in making credit decisions, and by secondary market issuers that use AVMs in certain securitization determinations. The requirements apply not just to consumer-purpose transactions, but to business-purpose transactions secured by a principal dwelling. Read about it in Mayer Brown’s Legal Update.
