20 Minute AI Appraisals Are Coming

[CGinMN]

It’s been demonstrated repeatedly that the checkbox and boilerplate is enough. You know this.

There is no human with a license on the line and accountable, and the bar can go way below the worst appraisal ( and the worst appraisals and appraisers should not be used anyway) .

Yes, an AI-assisted appraisal is exactly what I meant… it’s an appraisal with a human signing. If those doing 6/day could figure out a way to do 20/day, they would. With the help of technology, I think soon they will be able to. Even if it just empowers the appraisers doing 1/day to complete 3/day, that alone creates a lot of efficiency.

There are appraisers doing proprietary desktops in an hour and I believe that’s where GSE work is going to head with AI assistance. That is unless they start enforcing quality, which requires being able to measure it, something they haven’t really been able to figure out.

 

[Vermonter]

There is no human with a license on the line and accountable, and the bar can go way below the worst appraisal ( and the worst appraisals and appraisers should not be used anyway) .

I get you're trying to justify the human appraiser, but why wouldn't there be an accountable party (with insurance) behind an AI generated automated valuation?

 

[J Grant]

It’s been demonstrated repeatedly that the checkbox and boilerplate is enough. You know this.

Yes, an AI-assisted appraisal is exactly what I meant… it’s an appraisal with a human signing. If those doing 6/day could figure out a way to do 20/day, they would. With the help of technology, I think soon they will be able to. Even if it just empowers the appraisers doing 1/day to complete 3/day, that alone creates a lot of efficiency.

There are appraisers doing proprietary desktops in an hour and I believe that’s where GSE work is going to head with AI assistance. That is unless they start enforcing quality, which requires being able to measure it, something they haven’t really been able to figure out.

Blah blah blah efficeincy -gotvt bgacked loans worth hundreds of thousandds Of $ each are not fast food and there is no need for speed - loans are not widgets and getting the value faster will not increase loan volume.

 

[J Grant]

I get you're trying to justify the human appraiser, but why wouldn't there be an accountable party (with insurance) behind an AI generated automated valuation?

IDK- ask whoever is in charge. An insurance and human company badkstopping the value would increase the price of the product. ( the AVM )

Note that the appraisal WAIVER (which uses an AVM ) DOES NOT guarantee the value in case of default - the lender no longer is responsible for a buyback; it is ALL shifted to the taxpayer !! Pretty neat evasoin - if fannie and Freddie had to abosrt a loss for each bad Waiver valtin or default they;d either drop the product or the cost would go way up.

 

[CGinMN]

GSEs are competing for Rocket’s volume. Rocket wins more volume from Main Street Bank when they can close in 3 days vs 30 days.

 

[Vermonter]

Note that the appraisal WAIVER (which uses an AVM ) DOES NOT guarantee the value in case of default - the lender no longer is responsible for a buyback; it is ALL shifted to the taxpayer !!

Ok, so if they use an appraiser they ARE on the hook for the buyback but not if they use an AVM?

That is not an argument in our favor

 

[cpursley]

Would you like a drink with that order. Start practicing for your new jobs at mc'd.

AI is going to replace food ordering well before appraisers. The voice agents are getting really good. Anyways, touch screens at fast food as well as apps already have many.

Sometimes I'd rather speak with a fake AI with a midwestern accent than someone in Pakistan with a bad connection and poor cultural context (nothing at all against them, but it can be a struggle).

 

[cpursley]

Also, AI != AVMs. AVMs use machine learning but are not AI.

 

[cpursley]

Btw, I've had pretty good success using AI to solve certain types of problems. Just released this which uses a bit of AI to parse order details from those crappy AMC/lender portals:

Feature Spotlight: Portal Push | Appraisal Inbox

Discover how Portal Push eliminates manual data entry, saving appraisers hours of time with one-click order importing from bank, AMC, and lender portals.

www.appraisalinbox.com

If anyone juggles a bunch of these order portals and wants to give it a spin and provide feedback to help me improve it, please send me a DM and I'll set you up with a free account in exchange for the help.

 

[Elliott]

Do I have it right, the company is out of London? Can't wait for them to release their "Value to Contract Price" ratio.

Its fun to ask AI questions about risk and valuation models.

I ended with asking if there turns out to be massive fraud like Mortgage Backed Security Fraud in 2007, who would be held accountable:

"If AI valuations of residential real estate result in massive losses in the future, accountability for those losses would depend on several factors, including existing legal frameworks, regulatory safeguards, and the roles of stakeholders involved in the valuation process. "

"Conclusion
While regulatory measures like the CFPB’s rule aim to ensure accountability for AI-driven real estate valuations, challenges remain due to the opaque nature of algorithms and the difficulty in assigning fault when errors occur. Effective governance requires collaboration among developers, regulators, and real estate professionals, along with robust auditing systems and transparent practices to minimize risks and foster trust in AI valuations.

So then you ask AI about changes to CFPB:

"In summary, the CFPB has transitioned from an active regulator under Rohit Chopra in 2024 to a largely inactive agency in 2025 under new leadership aligned with President Trump’s administration. This shift reflects broader changes in federal regulatory priorities and has sparked debate over the future role of the CFPB in protecting consumers."