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News for Real Estate Investors and Landlords — avm

HELOC Class Action Lawsuit

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Lawyers filed a class action lawsuit against Chase for illegally freezing Home Equity Lines of Credit in early 2009. The lawsuit alleges that Chase wanted to stop cash outflows during the economic downturn.  It couldn't just "cancel" the HELOCs if homeowners were current in their payments, though.  As a result, the lawsuit says, Chase reappraised the properties using: NOT an appraiser; NOT an appraisal management company; NOT a real estate agent Broker Price Opinion or Competitive Market Analysis; Instead, they used artificial intelligence software called AVMs-Automated Valuation Models Because of built-in weaknesses in the AVM, the "appraisal" can be dramatically...

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