TouchvelocityAMC | Appraisal Management Company

Nationwide - United States

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TOUCHVELOCITY​​​​​​​


APPRAISAL MANAGEMENT COMPANY


AUTOMATED VALUATION MODELS


AUTOMATED VALUATION MODELS (AVM) USED TO ESTIMATE COLLATERAL VALUE FOR MORTGAGE LENDING PURPOSES


Automated valuation models shall adhere to quality control standards designed to:


- ensure a high level of confidence in the estimates produced by automated valuation models;

- protect against the manipulation of data;

- seek to avoid conflicts of interest;

- require random sample testing and reviews; and

- account for any other such factor that those responsible for formulating regulations deem appropriate


The Fed, the Comptroller of the Currency, the FDIC, the National Credit Union Administration Board, the Federal Housing Finance Agency, and the Bureau of Consumer Financial Protection, in consultation with the staff of the Appraisal Subcommittee and the Appraisal Standards Board of The Appraisal Foundation, shall promulgate regulations to implement the quality control standards required under this section that devises Automated Valuation Models.


Residential and 1-to-4 unit single family residential real estate is enforced by: Federal Trade Commission, the Bureau of Consumer Financial Protection, and a state attorney general. Commercial enforcement is by the Financial regulatory agency that supervised the financial institution originating the loan.


Broker Price Opinions may not be used as the primary basis to determine the value of a consumer's principal dwelling; however, valuation generated by an automated valuation model is not considered a Broker Price Opinion.


The standard settlement form (commonly known as the HUD 1) may include, in the case of an appraisal coordinated by an appraisal management company, a clear disclosure of:


- the fee paid directly to the appraiser by such company

- the administration fee charged by such company


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AVM TECHNOLOGIES

These techmologies utilized the lastest guidelines to acheive best accuracy valuations.

Using Automated Valuation Models is a functional technology. Nonetheless, there will be unknowns in using an AVM versus a Professional Licensed/Certified Appraiser.

AVM UNKNOWNS

Is the property located where it should be? Has there been any vandalism?  Are there really five functional bedrooms or only four?


Do Automated Valuation Models consider noise?  Is the living room or the bedroom located in close proximity to a train or another noisy environment?

There are many and various uses for an AVM and their functionalities should be considered, more especially, as the techology progress.  Also, as a 'just checking' reource this tool can be cost effective.