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The AAVM is useful in situations where borrower risk is low and the anticipated property value falls within a wide range of values that the lender has decided is acceptable as compared to the borrower's income.
One of these tools is the Appraiser Assisted Valuation Model (or AAVM, as it is often called), which provides the appraiser with a computerized valuation for review and purportedly gives lenders what they want: a low-cost, high-speed method to reduce collateral risk in mortgage underwriting.
With the AAVM, the lender gets the benefit of AVM speed (for a preliminary estimate of value in minutes) as well as the benefits of an appraiser's knowledge and local expertise (for a final decision to underwrite the loan in a day or so).
As the quality of input data increases, Vance observes, the reliability of AVMs and AAVMs will increase, as will their use by the industry and appraisers.