Do Home Equity Lenders And Primary Mortgage Lenders Use AVM’s?
Yes They Do. In The Refinance Market, Over 95% Of All Home Equity Lenders Require Only An AVM And Not An Appraisal By A Licensed Appraiser In Order To Loan Against Home Equity. In The Primary Lender Category, E.G. Initial Mortgage Lending For A Home, Only 5% Rely Upon AVM’s; And Most Require A Full Appraisal From A Licensed Appraiser. The Percentage Of AVM Use By Primary Lenders Is Increasing. Most Lenders Today Do Not Accept Broker Price Opinions As Meaningful Or Relevant Given The Inherent Vested Interests Which Can Skew Values For The Buyer And The Lender. Likewise, Most Lenders Know That A Drive-By As Opposed To A Full Appraisal Is Much Less Accurate Than An AVM And Has The Issue Of Vested Interest Embedded. (Lenders And Appraisers Are Not Permitted To Communicate The Price Or Appraised Value Necessary To Complete A Loan And Appraisers Must Attest, In Writing, To No External Communication With The Lender Or The Lender’s Agent(S) As Part Of Their Appraisal Report.) Real Estate Broke
