12 CFR § 722.203 - Quality control standards.

---
identifier: "/us/cfr/t12/s722.203"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 722.203 - Quality control standards."
title_number: 12
title_name: "Banks and Banking"
section_number: "722.203"
section_name: "Quality control standards."
chapter_name: "NATIONAL CREDIT UNION ADMINISTRATION"
subchapter_number: "A"
subchapter_name: "REGULATIONS AFFECTING CREDIT UNIONS"
part_number: "722"
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. 1766, 1789, and 3331  Section 722.3(a) is also issued under 15 U.S.C. 1639h."
regulatory_source: "55 FR 30207, July 25, 1990, unless otherwise noted."
cfr_part: "722"
---


# 722.203 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.