AVM

Veros Real Estate Solutions, an enterprise risk management and collateral valuation services company, released new research that shows its Automated Valuation Model does not discriminate based on redlining. Experts have recently sounded the alarm on bias in home appraisals. Studies have shown that homes occupied by Black Americans are consistently undervalued compared to similar homes with white owners. Automated home appraisals are supposed to reduce the problem by removing human biases altogether, but concerns persist that the algorithm, fed human-produced data, can reproduce these problems. Further, they may be harder to spot because of the apparent objectivity of the technology. The Consumer Financial Protection Bureau introduced a rule intended to safeguard homeowners against this issue earlier this month. “While machines…