Having a little trouble deciphering from the rule if AVMs are allowed when a loan amount is over $400,000? Or is it allowed if it conforms to the standards listed in the rule? Or is it appraisal only for transactions $4000,000 and up?

An AVM is an evaluation:

Regarding concerns about AVM use, the agencies note that, while financial institutions may use AVMs in preparing evaluations, any evaluation in which they are used must be consistent with safe and sound practices.

Thanks, but doesn't quite answer my core question. Is an appraisal mandatory for loan amounts over $400,000?

To go along with Randy's quote this is also from page 9 of the Interagency Guidelines.

Further, the Agencies revised the Guidelines to confirm that the result of an automated valuation model (AVM), in and of itself, does not meet the Agencies’ minimum appraisal standards, regardless of whether the results are signed by an appraiser.

Transactions over the applicable threshold require an appraisal.

Thank you Dan!