Fitch Dispels Notion That AVMs Lag Prices, Ends Discounting
June 5, 2006
Fitch Ratings has had a change of heart. For a long time, the firm did not trust automated valuation models used in housing markets it considered soft. This resulted in Fitch trimming property values by 10-15 percent in those areas when lenders used non-full appraisals. AVM vendors opposed Fitch’s methodology and complained that the firm’s view that AVM data would lag true property values in a soft market was inaccurate. …