AI's Impact on Home Appraisals: New Rule Ensures Accountability

New federal rule calls for accountability from appraisers using AI

Artificial Intelligence (AI) is here and is changing the landscape across a range of consumer finance interactions, and that includes the home buying process.

A new federal rule seeks to protect consumers from potentially abusive or negative practices that could result from the use of AI in the home appraisal process.

The Consumer Financial Protection Bureau (CFPB) announced the new rule in a blog post.

According to the CFPB:

The new rule we are approving today requires companies that use these algorithmic appraisal tools to put safeguards into place to ensure a high level of confidence in the home value estimates, protect against the manipulation of data, avoid conflicts of interest, and comply with applicable nondiscrimination laws.

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