In these times of mortgage crisis and the problems with "sub-prime" loans as well as mortgage brokers, one can only wonder what role did Automated Valuation Models (AVMs) play in the current meltdown? To date I have heard no mention of their participation, and yet its been estimated that upwards of 30% of all valuations are done by AVMs.
Currently, there are no agencies of any kind or regulations of any kind that oversee AVMs, their outputs, or AVM operators. The following article was written for the Valuation 2000 conference held in Las Vegas and sponsored by the big three appraisal organizations, AI, ASA, and the ASFMRA. Given the current crisis it seems very timely to take another look at what was written before the big housing bubble burst.