Featured Insight

Shaping the Appraisal Process with AI

April 2023

Lenders are facing increasing pressure to modernize their home lending operations, lower costs, and reduce risk following a rapid rise of interest rates and resulting cooling of the housing market. This renewed focus on process enhancements has shined a spotlight on the appraisal process as a glaring area for improvement. While having a third-party assessment of a home’s value is critical to ensuring that lenders extend the appropriate amount of credit, there are several pain points in the current workflow. Appraisers, who have significant influence in the process, are susceptible to human error and bias that can put banks at greater financial, regulatory, and reputational risk. At the same time, technology solutions to determine valuations are insufficient and generate their own challenges. Banks should think carefully about how to manage these risks and improve efficiency.

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