When do AVMs make the most sense?

One of the largest origination costs for lenders is the appraisal product. Drive-by appraisals or interior appraisals are prohibitively expensive. Many lenders have determined that the “cost” of the valuation is not commensurate with the “value” of the information in the underwriting process. This is why AVMs are returning to dominance in the valuation space for home equity lending.

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