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The adoption of new rules by six federal regulators governing the use of automated valuation models in the mortgage process highlights how widespread these tools have become.
Back in 2001, a survey by mortgage technology vendor Mortech found that only 10% of responding companies were using AVMs—reflecting the industry’s overall lack of technological adoption at the time.
However, regulators noted that AVM usage has surged in recent years, driven by advancements in database and modeling technology. These tools have also played a key role in addressing the long-standing shortage of appraisers.
And AVM technology continues to evolve. Here’s a look at some of the latest developments in this space.
