Are there any regulations or laws governing the use of AVMs in the US?
Yes, there are regulations and laws governing the use of Automated Valuation Models (AVMs) in the United States. The use of AVMs is regulated by various federal and state agencies, including the Federal Reserve, the Consumer Financial Protection Bureau (CFPB), and state real estate boards.
At the federal level, the Home Valuation Code of Conduct (HVCC) was implemented in 2009 as part of the Housing and Economic Recovery Act. The HVCC sets standards for the use of AVMs in the mortgage industry and requires that appraisals be performed by licensed and certified appraisers in certain circumstances.
In addition, the CFPB has issued guidance on the use of AVMs in the mortgage industry, and it has the authority to enforce these regulations.
At the state level, regulations vary, but many states have laws and regulations governing the use of AVMs by real estate professionals, including real estate agents and mortgage lenders.
It is important for organizations using AVMs to be aware of and comply with all relevant regulations and laws to ensure that their use of AVMs is legal and ethical.
In summary, while AVMs are widely used in the US, their use is regulated by various federal and state agencies to ensure that they are used in a fair and transparent manner.
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