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NAFCU meets with SBA Office of Advocacy
NAFCU and other financial services trade groups met with the Small Business Administration’s (SBA) Office of Advocacy to discuss automated valuation models (AVMs) and the CFPB Policy Statement on unfair, deceptive, or abusive acts or practices (UDAAP). The SBA Office of Advocacy regards itself as “the independent voice for small business within the federal government” and collects perspectives on regulations from other agencies.
During the meeting, the groups discussed the joint proposal from the NCUA and five other federal to implement quality control standards from the Dodd-Frank Act for automated valuation models (AVMs). The proposal would require certain institutions to ensure AVMs used for determining the value of mortgage collateral follow quality control standards and protect the data from manipulation.
Of note, NAFCU wrote to the NCUA last month regarding its annual regulatory review. In the letter, NAFCU Senior Regulatory Affairs Counsel James Akin requested authorization for credit unions to use AVMs when conducting pre-funding reviews of appraisals.
The group also discussed guidance posted by the CFPB regarding its definition of “abusive” practices. Credit unions can find further guidance on this topic on the Compliance Blog.
Stay tuned to NAFCU Today for the latest regarding the joint proposal on AVMs.