MISMO Releases AVM Common Confidence Score Standard and Guidance for Industry Use
August 28, 2025
WASHINGTON, D.C. (August XX, 2025) – MISMO®, the real estate finance industry's standards organization, today announced the release of the Automated Valuation Model (AVM) Common Confidence Score Standard and Guidance. This new standard is designed to help mortgage originators and other stakeholders evaluate AVM risk more effectively and consistently, supporting industry-wide adoption and regulatory compliance.
The AVM Common Confidence Score provides a standardized way to communicate the reliability of AVM-generated property valuations. This enables lenders to make more informed, risk-based decisions and fosters greater trust in AVM usage. The standard also supports compliance with the Dodd-Frank Act AVM Rule, which introduces new quality control requirements for AVMs.
Developed through collaboration with industry stakeholders, the guidance encourages preventive self-regulation in anticipation of future enforcement. While regulatory uncertainty remains, lenders have expressed strong interest in adopting the standard to improve operational efficiency and reduce costs.
Key Benefits of the AVM Confidence Score Standard Include:
- Improved Risk Communication: Enables stakeholders to evaluate AVM reliability on a common scale.
- Cost Reduction: Encourages AVM adoption, lowering valuation costs for lenders and consumers.
- Regulatory Alignment: Supports compliance with Fair Lending laws and the Dodd-Frank AVM Rule.
- Standardized Testing Framework: Promotes consistent validation of AVM confidence scores across the industry.
MISMO’s work to solve key business challenges is made possible by its members and sponsors. This standard and many more are available to the public on MISMO’s website. Visit MISMO.org to learn how you can get involved.