Significant Differences in Values Determined by Traditional Home Appraisals and AVMs Could Impact LTV Ratios
December 14, 2017
If lenders shift from traditional appraisals to automated valuation models, there could be an im-pact on loan-to-value ratios and loan balances for new originations, according to CoreLogic. The firm found that traditional appraisals done when a mortgage is originated are less likely than AVMs to reach a value below the contract price.