MISMO Releases AVM Confidence Score Standard
May 29, 2025
Source
Mortgage Bankers AssociationContact
Brittney Prophete (202) 557-2799WASHINGTON, D.C. (May 29, 2025) – MISMO®, the
real estate finance industry's standards organization, today announced
it is seeking public comment through June 28, 2025, on the Automated Valuation Model Common Confidence Score Standard and Guidance.
Automated
Valuation Models (AVMs) are cost-effective tools used to calculate home
values and improve the quality of risk-based decision making for
lenders. MISMO has standardized the calculation of the confidence score
that shows the expected accuracy of the model’s valuation.
“This
marks an important first step in our broader efforts to enhance
transparency and trust in AVMs,” said Erica Vigen, Co-Chair of the AVM
Development Work Group and Senior Product Manager, Real Estate
Analytics, at Clear Capital.
“We
are excited to share this initial work with the industry and are
committed to building on this foundation. Additional standards
addressing accuracy and fairness testing are currently in development
and are anticipated for release later this year,” added Carla Nott,
Co-Chair of the AVM Development Work Group and Executive Director,
Collateral Valuations Solutions and Reporting, at JPMorgan Chase.
The
Automated Valuation Model Common Confidence Score Standard and Guidance
is the first of a suite of MISMO standards designed to:
- Support the industry in communicating risk more effectively;
- Support greater adoption of AVMs among lenders, and
- Assist with compliance with the Interagency Rule on Quality Control Standards for Automated Valuation Models.
The
public comment period allows at least 30 days’ notice prior to final
release to review and disclose any applicable Patent Rights (as defined
by MISMO's 2018 Intellectual Property Rights Policy).
MISMO
requests that any organization that may have any patent or patent
applications, or other intellectual property rights that might be
infringed upon by an organization that uses or is compliant with these
proposed MISMO products to disclose them at this time in writing. All
comments and disclosures are due by June 28, 2025, and should be
directed to [email protected].