CFPB Turns Rulemaking Eye Toward AI Use in Automated Home Appraisals

July 2, 2024

The Consumer Financial Protection Bureau (CFPB) this week announced the approval of a new rule that aims to govern “current and future applications of complex algorithms and artificial intelligence used to estimate the value of a home.” The rule specifically targets automated valuation models (AVMs), according to an announcement from CFPB Director Rohit Chopra and deputy director Zixta Martinez.

The importance of home appraisals to the homebuying and selling processes necessitate a stronger eye toward the use of burgeoning AI across a wide swath of U.S. businesses. The bureau expressed concern that the use of such tech could impact the equitable application of home appraisals.

Learn more about this topic by Chris Clow as seen in Housingwire.

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