The Department of Justice’s recent move to eliminate disparate-impact liability under its Title VI regulations has raised understandable questions across housing and credit markets. But for lenders, GSE partners, and valuation providers preparing for the AVM Quality Control Standards, one thing is clear:
The obligations around AVM fairness haven’t gone away.
The interagency AVM rule—effective October 1, 2025—explicitly requires institutions to establish policies, practices, procedures, and control systems to ensure AVMs comply with applicable nondiscrimination laws. That requirement remains fully intact. So do the supervisory expectations of prudential regulators, FHFA, and CFPB around managing fair lending and bias risk in automated systems, whether or not DOJ narrows its enforcement tools under Title VI.
Even with political shifts, the industry continues to operate under:
- The Fair Housing Act, where disparate-impact liability is still recognized by the Supreme Court.
- ECOA/Reg B fair lending expectations, which continue to incorporate statistical evidence of adverse outcomes.
- Growing scrutiny of AI and automated valuation, highlighted by recent GAO recommendations urging clearer guidance on emerging technology risks.
In short: Regulatory pendulums swing—but AVM fairness risk remains.
Institutions still need independent, statistically rigorous testing to understand whether their AVMs or cascades produce unjustified disparities, and to document business justification and alternatives when they arise. That’s where AVMetrics’ fifth-factor validation fits the bill. Our analysis is national, extensive, independent, thorough, examiner-ready and tested for significance.