12 CFR § 323.17 - Quality control standards.

---
identifier: "/us/cfr/t12/s323.17"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 323.17 - Quality control standards."
title_number: 12
title_name: "Banks and Banking"
section_number: "323.17"
section_name: "Quality control standards."
chapter_name: "FEDERAL DEPOSIT INSURANCE CORPORATION"
subchapter_number: "B"
subchapter_name: "REGULATIONS AND STATEMENTS OF GENERAL POLICY"
part_number: "323"
part_name: "APPRAISALS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 1818, 1819(a)(“Seventh” and “Tenth”), 1831p-1 and 3331"
regulatory_source: "55 FR 33888, Aug. 20, 1990, unless otherwise noted."
cfr_part: "323"
---


# 323.17 Quality control standards.

Mortgage originators and secondary market issuers that engage in credit decisions or covered securitization determinations themselves, or through or in cooperation with a third-party or affiliate, must adopt and maintain policies, practices, procedures, and control systems to ensure that automated valuation models used in these transactions adhere to quality control standards designed to:

(a) Ensure a high level of confidence in the estimates produced;

(b) Protect against the manipulation of data;

(c) Seek to avoid conflicts of interest;

(d) Require random sample testing and reviews; and

(e) Comply with applicable nondiscrimination laws.