Automated Valuation Model

AVM testing under fire: New methodology challenges industry norms and raises risk for lenders 

The reliability of Automated Valuation Models (AVMs) has been thrust into the spotlight in recent weeks, following groundbreaking changes in the way these models are now being tested. The implications for home equity lenders, who rely heavily on AVMs to determine property values, could be far-reaching, especially as the industry grapples with new regulatory questions about risk management and model accuracy.