20 Minute AI Appraisals Are Coming

[Vermonter]

Point is we DO NOT have an unblemished track record. Deserved or not.

 

[Vermonter]

AI doesn't have to be better than an appraiser to replace us. It just has to be good enough that the lenders perceive it as better.

 

[djd09]

they threw the terminator in the fryar at the end of the movie...

 

[Mike Ault]

AI doesn't have to be better than an appraiser to replace us. It just has to be good enough that the lenders perceive it as better.

The ratings agencies should clearly delineate MBS supported with black box avms under the control of lenders versus those supported by independent appraisals. There should be a perceived difference in the marketplace for those, and it shouldn't be obscured under the guise of securitization.

 

[glenn walker]

But who is going to back these products for the loan and do a buy back if the valuation stinks...

The taxpayers...wash-rinse- repeat-- appraisals didn't mitigate risk in the last two meltdowns it was all about loose underwriting and govt policies. Nothings changed.

The next meltdown won't be about appraisals but high Hoas--fire insurance and natural disasters making payments to expensive. So defaults will increase but appraisals will be extremely small part of risk analysis.

Watching the weather report's and where fire's are most likely is replacing and creating new risk models. The traditional appraisals are good for 1 day only and anything negative that happens 24 hours later makes it a worthless piece of paper.

 

[djd09]

a mortgage broker, an atari stick, and a number...what could go wrong

 

[Mike Ault]

Watching the weather report's and where fire's are most likely is replacing and creating new risk models. The traditional appraisals are good for 1 day only and anything negative that happens 24 hours later makes it a worthless piece of paper.

Human appraisers keep everybody involved in the transaction honest. I have prevented an amazing amount of outright fraud during my career. Take us out of the loop, and watch the double contracting begin.

 

[djd09]

if the appraisal is a no factor...then why do you need any number

 

[J Grant]

AI doesn't have to be better than an appraiser to replace us. It just has to be good enough that the lenders perceive it as better.

Read up on AI - it does not think, it can not handle many diverse jobs at once such that go into an appraisal - other than adding some narrative which seems similar to canned comments, I do not see how it does wanting much different than an AVM and an AVM has a certain use for sure, as well as certain limitations.

 

[J Grant]

Human appraisers keep everybody involved in the transaction honest. I have prevented an amazing amount of outright fraud during my career. Take us out of the loop, and watch the double contracting begin.

Hacking, setting the algorithm and data feeds to suit an agenda or hit values - I mean, what could possibly go wrong...