A recent C/E instructor said she had breakfast with one of the Freddie Mac representatives and he stated the Freddie Mac has been using AVM's to refute values on appraisal reports. Apparently he used an example of a home that appraised at $180,000. The AVM came in at $120,000. They are then requiring the mortgage originator to come up with the difference. Since the loan package may have taken a while to enter Freddie's realm you would think that The AVM would have to be based on a retrospective analysis. I do not know if AVM's can do a retrospecive analysis. I don't know if Fannie is implementing the same policy. If someone has additional information related to their policy please let me know. Perhaps someone can enlighten me as to what they think the ramifications might be to the appraiser aand the potential litigation that may transpire.