(a) Authority.
(1) In general. This subpart is issued pursuant to section 1125 of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989, 12 U.S.C.
3354, as added by section 1473(q) of the Dodd-Frank Wall Street Reform
and Consumer Protection Act (Pub. L. 111–203, 124 Stat. 1376,
2198 (2010)), as well as under the Federal Reserve Act, as amended
(12 U.S.C. 221 et seq.); the Bank Holding Company Act of 1956,
as amended (12 U.S.C. 1841 et seq.); the Home Owners’
Loan Act of 1933 (12 U.S.C. 1461 et seq.); section 165 of the
Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C.
5365); and the International Banking Act of 1978, as amended (12 U.S.C.
3101 et seq.).
(2) Nothing in this part shall be read
to limit the authority of the Board to take action under provisions
of law other than 12 U.S.C. 3354, including but not limited to action
to address unsafe or unsound practices or conditions, or violations
of law or regulation, under section 8 of the Federal Deposit Insurance
Act, as amended (12 U.S.C. 1818).
(b) Purpose and scope.
(1) The purpose of this subpart is to implement
the quality control standards in section 3354 of title 12 for the
use of automated valuation models in determining the value of collateral
in connection with making a credit decision or covered securitization
determination regarding a mortgage or a mortgage-backed security.
This subpart applies to entities and institutions regulated by the
Board (Board-regulated institutions) that are mortgage originators
or secondary market issuers.
(2) This subpart does not apply to the
use of automated valuation models in:
(i) Monitoring of the
quality or performance of mortgages or mortgage-backed securities;
(ii) Reviews of the
quality of already completed determinations of the value of collateral;
or
(iii) The development
of an appraisal by a certified or licensed appraiser.
