EAA and EMF publish their 2025 joint paper on the use of AVMs in Europe

The First Joint Paper was published back in 2016 to provide an overview of the key applications and features of AVMs and of the state of the industry across Europe. Since 2016, there have been a number of relevant developments, including the publication of the EBA Guidelines on Loan Origination and Monitoring (EBA/GL/2020/06 – EBA GLOM), which for the first time in an EU-wide supervisory framework for financial institutions introduced criteria for advanced statistical models as well as guidance regarding their use for valuation, revaluation and monitoring, as well as, more than eight years later, the adaptation of the same criteria in the revised Capital Requirements Regulation (CRR3), bringing the use of AVMs into level 1 legislation on the European level. Our 2025 Joint Paper therefore provides an up-to-the-minute overview of the different types of AVMs in use across Europe in terms of their technical complexity and accuracy, as well as their actual fulfillment of the criteria required in the new regulatory regime where relevant.

Commenting on this valuable resource, Sanjo Nitschke, Chairman of the EAA Standards Committee, said the following:

“The use of Automated Valuation Models (AVMs) by banks and other stakeholders for the valuation of residential property has expanded rapidly over the past decade and is expected to continue growing. The European AVM Alliance (EAA) is therefore pleased to present this updated version of our joint paper with the European Mortgage Federation (EMF), offering a detailed overview of the wide range of purposes for which AVMs are employed across Europe throughout the lifetime of a mortgage"

Annett Wünsche, Chairwoman of the EMF Valuation Committee, added the following:

“We are proud to present the latest findings on the use of Automated Valuation Models (AVMs) in Europe, developed jointly with the European AVM Alliance (EAA). This comprehensive survey highlights the growing acceptance, increasing quality and versatile applications of AVMs in compliance with banking regulation. AVMs are an important and up-to-date tool, particularly in private mortgage lending, to ensure property valuations quickly and yet with the highest quality.”