Appraisal bias has come under an increasingly bright spotlight within the valuation profession over the past several years. ValueScape, an artificial intelligence (AI) and data science company providing compliance management services to the housing and mortgage industries, is looking to address that issue, according to a press release.
Efforts to address bias are often focused on training and quality control, the company stated. However, the risk of potential bias can be difficult to identify quickly and clearly. Through AI-driven data analysis, the company said, it is possible to shine light upon whether appraisals are being produced equitably across various market areas and neighborhoods, honing in on any troubling trends.
“At ValueScape we have developed our bias application over a lengthy period of time, deliberately taking on as much constructive feedback as possible from investigators, fair housing associations, lenders, lawyers, appraisal management companies and regulators, including HUD, Fannie Mae, VA and the CFPB, and other market participants such as appraisers, realtors and homeowners,” the company stated. “This process has led us into developing a multifaceted application based on advanced statistical and AI analysis, to arrive at a more thorough, data-driven model than other solutions.”
Additionally, ValueScape users can construct trending models to analyze their appraisal population for disparate treatment across communities and alert them to any concerns. The application also provides inputs to the ROV (reconsideration of value) process, giving it added value.