Page 824

or other appropriate legal authorities. For complaints referred to State appraiser certifying and licensing agencies or to Federal regu- lators, the Appraisal Subcommittee shall have the authority to follow up such complaint referrals in order to determine the status of the resolution of the complaint.’’. (q) AUTOMATED VALUATION MODELS.—Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3331 et seq.), as amended by this section, is amended by adding at the end the following new section (and amending the table of contents accordingly):

12 USC 3354. ‘‘SEC. 1125. AUTOMATED VALUATION MODELS USED TO ESTIMATE
COLLATERAL VALUE FOR MORTGAGE LENDING PUR-
POSES.
‘‘(a) IN GENERAL.—Automated valuation models shall adhere
to quality control standards designed to—
‘‘(1) ensure a high level of confidence in the estimates
produced by automated valuation models;
‘‘(2) protect against the manipulation of data;
‘‘(3) seek to avoid conflicts of interest;
‘‘(4) require random sample testing and reviews; and
‘‘(5) account for any other such factor that the agencies
listed in subsection (b) determine to be appropriate.
‘‘(b) ADOPTION OF REGULATIONS.—The Board, the Comptroller
of the Currency, the Federal Deposit Insurance Corporation, the
National Credit Union Administration Board, the Federal Housing
Finance Agency, and the Bureau of Consumer Financial Protection,
in consultation with the staff of the Appraisal Subcommittee and
the Appraisal Standards Board of the Appraisal Foundation, shall
promulgate regulations to implement the quality control standards
required under this section.
‘‘(c) ENFORCEMENT.—Compliance with regulations issued under
this subsection shall be enforced by—
‘‘(1) with respect to a financial institution, or subsidiary
owned and controlled by a financial institution and regulated
by a Federal financial institution regulatory agency, the Federal
financial institution regulatory agency that acts as the primary
Federal supervisor of such financial institution or subsidiary;
and
‘‘(2) with respect to other participants in the market for
appraisals of 1-to-4 unit single family residential real estate,
the Federal Trade Commission, the Bureau of Consumer Finan-
cial Protection, and a State attorney general.
‘‘(d) AUTOMATED VALUATION MODEL DEFINED.—For purposes
of this section, the term ‘automated valuation model’ means any
computerized model used by mortgage originators and secondary
market issuers to determine the collateral worth of a mortgage
secured by a consumer’s principal dwelling.’’.
(r) BROKER PRICE OPINIONS.—Title XI of the Financial Institu-
tions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C.
3331 et seq.), as amended by this section, is amended by adding
at the end the following new section (and amending the table
of contents accordingly):

12 USC 3355. ‘‘SEC. 1126. BROKER PRICE OPINIONS.

LAWS ‘‘(a) GENERAL PROHIBITION.—In conjunction with the purchase of a consumer’s principal dwelling, broker price opinions may not be used as the primary basis to determine the value of a piecePUBLIC with on anorris VerDate Nov 24 2008 04:10 Sep 04, 2010 Jkt 089139 PO 00203 Frm 00824 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL203.111 GPO1 PsN: PUBL203