5 recent developments in AVM and appraisal technology

March 17, 2025 6:00 AM

The adoption of new rules by six federal regulators governing the use of automated valuation models in the mortgage process highlights how widespread these tools have become.

Back in 2001, a survey by mortgage technology vendor Mortech found that only 10% of responding companies were using AVMs—reflecting the industry's overall lack of technological adoption at the time.

However, regulators noted that AVM usage has surged in recent years, driven by advancements in database and modeling technology. These tools have also played a key role in addressing the long-standing shortage of appraisers.

And AVM technology continues to evolve. Here's a look at some of the latest developments in this space.

Veros adds AVM cascade technology to its offerings

An AVM cascade evaluates multiple models to determine the best fit for a given policy.

Veros Real Estate Solutions has expanded its offerings with the addition of Valustream, an AVM cascade technology powered by CoreLogic OptiVal.

"Lenders need valuation solutions that provide transparency and performance they can trust," said Eric Fox, chief economist and senior vice president of analytics at Veros, in a press release. "By continuously refining AVM selection at the county level and maintaining the highest standards of data integrity, we are delivering a solution that enhances underwriting efficiency and reduces valuation risks."

With Valustream, lenders can order the product without the hassle of manually adjusting their cascade settings. The system is automatically updated based on OptiVal's ongoing testing, ensuring optimal performance.

Propstream updates include AI technology

In September, PropStream enhanced its AVM estimated value function with machine learning and artificial intelligence.

"PropStream is committed to transforming how real estate data is collected and utilized through the integration of new predictive AI features," said Brian Tepfer, president of PropStream, in a press release. "Our first release is a new AVM powered by machine learning — giving our users an edge in their property research and comping to collect the most precise, diverse, and dynamic property valuations — empowering them to make educated decisions."

The upgraded technology pulls property values from multiple data sources and continuously refines them using machine learning AI, ensuring real-time updates as new information becomes available.

PropStream was acquired by Stewart Information Services, a title underwriter holding company, in November 2021.

AVM and property inspection tech join forces

Some experts believe that property inspections can enhance—or even replace—many traditional valuation methods.

In January, Quantarium and Proxypics formed a partnership to combine advanced valuation modeling with real-time inspection data. Quantarium's RE Valuation Platform, which features its QVM model, is now integrated with Proxypics' on-demand property inspection technology.

As part of this collaboration, Proxypics has launched a white-labeled, web-based application designed to work seamlessly with the valuation data.

"This partnership brings something entirely new to the industry—the ability to assess property condition and value simultaneously, with unprecedented speed and accuracy," said Luke Tomaszewski, CEO of Proxypics, in a press release. "Our network ensures that the most current data is available to support smarter, faster lending decisions."

An AVM designed for farmland

In January, CamoAg introduced an AVM tailored specifically for banks, insurance providers—many of which issue mortgages on agricultural properties—and investors, addressing the unique complexities of farmland valuation.

"We built this AVM with our clients' needs at the forefront," said Corbett Kull, CEO of CamoAg, in a press release. "By leveraging our machine learning expertise and exclusive access to agricultural data, we deliver valuations that adapt to the complex factors influencing farmland value."

A key feature of this technology is its "show your work" function, which provides transparency by displaying the comparable sales that inform each valuation. This allows users to review the data behind the calculations, enhancing trust and confidence in the AVM's accuracy, CamoAg noted.

Automating appraisal reviews

Homevision has partnered with Restb.ai to enhance appraisal accuracy through automated workflow solutions.

Restb.ai's artificial intelligence technology is now integrated with Homevision's Machine Intelligence Review Assistant (MIRA), which leverages optical character recognition and natural language processing to identify discrepancies in appraisal reports.

By incorporating Restb.ai's capabilities, MIRA can now detect inconsistencies between appraisal data and property imagery, ensuring that the reported condition and quality of both subject properties and comparables align.

"Our collaboration with Homevision underscores the transformative power of AI in the mortgage industry," said Tony Pistilli, general manager of valuation at Restb.ai, in a press release. "By integrating our advanced computer vision and AI solutions, we are streamlining the appraisal process—enabling appraisers, lenders, and appraisal management companies to work more efficiently while improving accuracy and ensuring compliance."