Automated Home Appraisals May Be Regulated to Prevent Bias: Kiplinger Economic Forecasts

The federal government is proposing regulations for appraisal models to ensure accuracy and nondiscrimination for homeowners.

picture of house with sold sign in front yard
(Image credit: Getty Images)

It's not unusual to see fluctuation in the housing market, and home values are good indicators of the health of an economy. To help you understand what is going on and what we expect to happen in the future, our highly-experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest...

Federal regulators want to tweak rules for automated home appraisals. Under a Biden administration proposal, agencies would require firms that use automated valuation models to adopt best practices and procedures to ensure accuracy, fairness and compliance with nondiscrimination laws. Proponents say the new rules could prevent bias in home appraisals, with algorithms serving as a check on human appraisers or replacing them. 

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Rodrigo Sermeño
, The Kiplinger Letter

Rodrigo Sermeño covers the financial services, housing, small business, and cryptocurrency industries for The Kiplinger Letter. Before joining Kiplinger in 2014, he worked for several think tanks and non-profit organizations in Washington, D.C., including the New America Foundation, the Streit Council, and the Arca Foundation. Rodrigo graduated from George Mason University with a bachelor's degree in international affairs. He also holds a master's in public policy from George Mason University's Schar School of Policy and Government.