174 
(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 further amended by adding at the end the fol-
lowing new section (and amending the table of contents ac-
cordingly): 
‘‘SEC. 1125. AUTOMATED VALUATION MODELS USED TO 
VALUE CERTAIN MORTGAGES. 
‘‘(a) IN GENERAL.—Automated valuation models shall 
adhere to quality control standards designed to— 
‘‘(1) ensure a high level of confidence in the esti-
mates produced by automated valuation models; 
‘‘(2) protect against the manipulation of data; 
‘‘(3) seek to avoid conflicts of interest; and 
‘‘(4) require random sample testing and reviews, 
where such testing and reviews are performed by an 
appraiser who is licensed or certified in the State 
where the testing and reviews take place. 
‘‘(b) ADOPTION
OF REGULATIONS.—The Appraisal 
Subcommittee and its member agencies shall promulgate 
regulations to implement the quality control standards re-
quired under this section. 
‘‘(c) ENFORCEMENT.—Compliance with regulations 
issued under this subsection shall be enforced by— 
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‘‘(1) with respect to a financial institution, or 
subsidiary owned and controlled by a financial insti-
tution and regulated by a federal financial institu-
tion or regulatory agency, the federal financial insti-
tution regulatory agency that acts as the primary fed-
eral supervisor of such financial institution or sub-
sidiary; and 
‘‘(2) with respect to other persons, the Appraisal 
Subcommittee. 
‘‘(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 Finan-
cial Institutions Reform, Recovery, and Enforcement Act 
of 1989 (12 U.S.C. 3331 et seq.), as amended by this section, 
is further amended by adding at the end the following new 
section (and amending the table of contents accordingly): 
‘‘SEC. 1126. BROKER PRICE OPINIONS. 
‘‘(a) GENERAL PROHIBITION.—Broker price opinions 
may not be used as the sole basis to determine the value 
of a piece of property for the purpose of a loan origination 
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176 
of a residential mortgage loan secured by such piece of prop-
erty. 
‘‘(b) EXCEPTIONS.—Subsection (a) shall not apply 
to— 
‘‘(1) those transaction as may be designated by 
the federal financial institutions regulatory agencies 
or the Federal Housing Finance Agency; or 
‘‘(2) real estate brokers who produce broker price 
opinions or competitive market analyses solely for the 
purposes of the real estate listing process. 
‘‘(c) BROKER PRICE OPINION DEFINED.—For pur-
poses of this section, the term ‘broker price opinion’ means 
an estimate, done in lieu of a written appraisal, prepared 
by a real estate broker, agent, or sales person that details 
the probable selling price of a particular piece of real estate 
property and provides a varying level of detail about the 
property’s condition, market, and neighborhood, and infor-
mation on comparable sales, but does not include an auto-
mated valuation model, as defined in section 1125(c).’’. 
(s) AMENDMENTS TO APPRAISAL SUBCOMMITTEE.— 
Section 1011 of the Federal Financial Institutions Exam-
ination Council Act of 1978 (12 U.S.C. 3310) is amended— 
(1) in the first sentence, by adding before the pe-
riod the following: ‘‘and the Federal Housing Finance 
Agency’’; and 
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(2) by inserting at the end the following: ‘‘At all 
times at least one member of the Appraisal Sub-
committee shall have demonstrated knowledge and 
competence through licensure, certification, or profes-
sional designation within the appraisal profession.’’. 
(t) TECHNICAL CORRECTIONS.— 
(1) Section 1119(a)(2) of the Financial Institu-
tions Reform, Recovery, and Enforcement Act of 1989 
(12 U.S.C. 3348(a)(2)) is amended by striking ‘‘coun-
cil,’’ and inserting ‘‘Council,’’. 
(2) Section 1121(6) of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 (12 
U.S.C. 3350(6)) is amended by striking ‘‘Corpora-
tions,’’ and inserting ‘‘Corporation,’’. 
(3) Section 1121(8) of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 (12 
U.S.C. 3350(8)) is amended by striking ‘‘council’’ 
and inserting ‘‘Council’’. 
(4) Section 1122 of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 (12 
U.S.C. 3351) is amended— 
(A) in subsection (a)(1) by moving the left 
margin of subparagraphs (A), (B), and (C) 2 
ems to the right; and 
(B) in subsection (c)— 
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(i) by striking ‘‘Federal Financial In-
stitutions Examination Council’’ and in-
serting ‘‘Financial Institutions Examina-
tion Council’’; and 
(ii) by striking ‘‘the council’s func-
tions’’ and inserting ‘‘the Council’s func-
tions’’. 
SEC. 604. STUDY REQUIRED ON IMPROVEMENTS IN AP-
PRAISAL PROCESS AND COMPLIANCE PRO-
GRAMS. 
(a) STUDY.—The Comptroller General shall conduct a 
comprehensive study on possible improvements in the ap-
praisal process generally, and specifically on the consist-
ency in and the effectiveness of, and possible improvements 
in, State compliance efforts and programs in accordance 
with title XI of the Financial Institutions Reform, Recov-
ery, and Enforcement Act of 1989. In addition, this study 
shall examine the existing exemptions to the use of certified 
appraisers issued by Federal financial institutions regu-
latory agencies. The study shall also review the threshold 
level established by Federal regulators for compliance under 
title XI and whether there is a need to revise them to reflect 
the addition of consumer protection to the purposes and 
functions of the Appraisal Subcommittee. The study shall 
additionally examine the quality of different types of mort-
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