AVM use up 400%, says Hometrack

Hometrack has reported a 400% rise in the use of automated valuation models. It says lenders are looking for objective valuations of their portfolios to protect themselves during the credit crunch. Oliver Hughes, director of capital markets at Hometrack, says: “Large lenders and mortgage-related investors are looking to AVMs to value portfolios, reset LTVs and identify areas of risk. They also seek more transparency and a betterunderstanding of their assets.”