MISMO Releases AVM Confidence Score Standard
MISMO, the real estate finance industry’s standards organization, 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 info@mismo.org.
