Calcasa, Hometrack and Eiendomsverdi (two other major European AVM (Automated Valuation Model) providers) have launched a pan-European initiative aimed at promoting and standardising the usage of AVMs across Europe. The intent is to bring about a consistent approach to automated valuations enabling the mortgage lending, investor, rating and regulatory communities to do business in a more transparent and effective way.
The European AVM Alliance (EAA) draws upon the considerable knowledge and expertise of three of the pre-eminent players in the European AVM space. Calcasa is the major supplier of AVMs in the Netherlands, Hometrack is the leading supplier of AVMs in the UK, Eiendomsverdi operates the sole AVM in Norway, on-geo is an AVM provider in Germany and Austria, Tinsa is the main AVM provider for the housing market in Spain, CRIF is the leading AVM provider for the Italian market and Värderingsdata is the leading AVM provider for the Swedish housing market.
The role of AVMs has grown significantly in Europe over the last 10 years. Today, lenders regard them as integral to their residential mortgage business and risk management practices. Fast and impartial, lenders rely on AVMs for origination, point of sale, fraud detection, portfolio management and risk assessment. The EAA recognises a growing reliance on and appetite for AVM services across national boundaries. Its aim is to set standards and establish codes of best practice and conduct in what has become a highly evolved and specialised discipline. In doing so, the EAA is looking to foster a favourable operating environment for AVM usage across Europe to the benefit of consumers, lenders, investors, shareholders and regulators.