Mortgage lenders continue to face significant change in 2025. The rapid rise in AI combined with a regulatory environment that is turning the status quo on its head are keeping mortgage lenders on their toes. Meanwhile, mortgage interest rates remain stubbornly high, and inventory remains low – putting pressure on mortgage lenders to innovate and differentiate.
As the market swiftly evolves, appraisal management continues to be a crucial factor for operational efficiency and competitive differentiation. As we move through 2025, these five key themes in appraisal management are top of mind for today’s highest performing lenders.
1. The Rise of AI and Automation in Appraisals
Artificial Intelligence (AI) and machine learning are transforming appraisal management. Appraisal management tools such as AVMs and desktop appraisals have evolved to leverage AI innovation and can now analyze vast amounts of market data, property characteristics and historical trends much faster than a traditional appraisal. When combined with the expertise of experienced appraisers, mortgage lenders have the power to generate faster, more accurate appraisals while also reducing costs – a win-win for profitability and consumer satisfaction. Even the GSEs are on board, with appraisal waivers (aka technology-powered appraisals) now a possibility for a vast majority of mortgage, refinance and home equity loans. Lenders who have not already invested in AVM, desktop and hybrid appraisal management technology should make this a top priority in 2H25.
2. The Expansion of Hybrid Appraisals
Coinciding with the growth of AI-powered technologies, hybrid appraisals – which combine the expertise of a licensed appraiser with third-party property data collection and desktop appraisal technology – continue to gain traction. Lenders and AMCs are leveraging technology to streamline data collection, automate appraisal workflows, and improve appraisal accuracy. Hybrid appraisals have become the go-to for top performing lenders – proving that appraisal management technology can have a direct, positive impact on cost per loan and lender profitability.
3. Compliance and Regulatory Shifts
While some areas of the housing market are likely to see less oversight under the new government administration, there is currently increasing scrutiny on AMCs and appraisal practices. Adoption of the Uniform Property Dataset (UPD) and new fair lending regulations are motivating lenders to enhance transparency and standardize documentation practices. Lenders are also looking to minimize risk associated with vendor relationships. With private law firms considering class-action lawsuits against AMCs for lack of transparency and appraisal fees, it is critical that lenders carefully evaluate any potential AMC relationship. Here are two tools that can help lenders ensure an AMC is reputable and adding value: The Hidden Value of AMCs e-book and Know Your AMC checklist.
4. Market Analytics & Climate Risk Assessment
Data-driven decision-making is taking center stage at every step of the mortgage loan process. Access to comprehensive, current data supports more rapid and accurate analysis of buyer qualifications, neighborhood trends, economic indicators and buyer behavior in real-time. Predictive analytics help lenders and investors anticipate market shifts, making real estate appraisals more dynamic and reflective of current conditions. One key area that has been a focus in 2025 is climate impact. Lenders and appraisers are increasingly incorporating climate risk assessments into lending and appraisal processes, considering factors such as flood zones, fire risk and sustainability ratings. Property values in areas at risk for climate degradation can change rapidly, and lenders are exercising more caution than ever before when lending in these markets. The takeaway for 2H25: to remain competitive, mortgage lenders need access to timely, accurate data and real-time data analytics technology.
5. Market Volatility
As 2025 progresses, mortgage lenders must have the tools to adapt to a complex market shaped by fluctuating interest rates, housing supply challenges and an unpredictable regulatory market. When it comes to appraisal management, lenders can benefit from accelerating investments in appraisal management technology, mobile property data collection tools and appraisal data analytics software to ensure they have the agility to navigate what is continuing to be an unpredictable landscape.
How We Can Help
Accurate Group is the only real estate technology and service provider delivering integrated, technology-driven appraisal, title data, analytics, and digital closing solutions. Choosing to work with Accurate Group means you’re choosing a proven partner who can guide you through automating, streamlining and optimizing multiple aspects of your loan process, while factoring in your unique business needs and goals.
Accurate Group has been a leader in the mortgage lending market for years. Unlike recent entrants to the market, we know how to help mortgage lenders manage volatility, leverage the latest technology innovations, and deliver superior customer service. This is why so many top performing lenders trust Accurate Group. Contact us to learn how we can help you, too.
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