Home Buyers-Your Lender Wants an Algorithm to Appraise Your Home

[et_pb_section][et_pb_row][et_pb_column type=”4_4″][et_pb_text]Currently, the terms “Artificial Intelligence,” and “Algorithms” have been sold to the masses as being objective, scientific and unfortunately accurate. What has been sold to us, is and has been, merely a marketing trick to intimidate consumers with accepting algorithms as gospel. A lot can go wrong when collectively, we put blind faith in big data.If Fannie Mae and Freddie Mac now allow ‘Algorithms’ be the ‘Decider’ and not human appraisers for your next Home Loan – Then is it not logical that the laws be updated and enacted to properly reflect and acknowledge that the programmers and their Bosses who’ve signed off on them by holding them to the same level of accountability as both the Licensed and State Certified Real Estate Appraisers?Algorithms are everywhere. They sort and separate the winners from the losers. The winners get the job or a good credit card offer. The losers don’t even get an interview, or they pay more for insurance. We’re being scored with secret formulas that we don’t understand that often don’t have systems of appeal.That begs the question: What if the algorithms are wrong? To build an algorithm, you need two things: you need data, what happened in the past, and a definition of success, the goal that you’re looking for and often hoping to repeat. You train an algorithm by looking, figuring out. The algorithm figures out what’s associated with success. What situation leads to success?Algorithm’s; Artificial Intelligence are 21st-century machines. They require a human being to function. Therefore algorithm/A.I., cannot usurp the human mind. A machine can solve only “deterministic” problems. New data/information would be a surprise. A “deterministic algorithm” is an algorithm which, given a particular input, will always produce the same output, with the underlying machine always passing through the same sequence of states.” The second type: “nondeterministic algorithms” are often used to find an approximation to a solution, when the exact answer would be too costly to obtain using a deterministic one. A nondeterministic algorithm represents a single path stemming into many routes, some of which may arrive at the same output and some of which may arrive at different outputs.
  • However, both are just machines and require a human being to function.
  • Machines do not think
  • Computers lack creativity
  • Devices lack consciousness
  • Only human consciousness produces thinking.
Who are these human oracles from the Banks and their Coders programming these algorithms? What are their goals, their biases, responsibilities, and accountability? In an industry that has multiple regulatory requirements, how do they fly so low under the radar? [/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]

Tom

The Appraisers at Trust Real Estate Appraisal are State Licensed and Michigan Appraisal Board Certified Real Estate Appraisers and are a neutral third-party participant in residential real estate values.Certified Appraisers provide a key role in managing collateral risk and supporting the health of the country’s housing finance system by protecting public trust in Real Estate Transactions.Our Certified Residential Appraisal services are high value/low cost, and those services are conducted independently, without bias for our Clients-period. Real Estate Appraisals for Divorce, Estate Settlement, Loans, Pre-Listing, and More. Serving all West Michigan Residential Communities.Our services include: • Mortgage Banker. Broker, MBS Appraisals, FNMA, FHA Approved: Reverse Mortgages, HUD Loans. Rural, Lake, River & Resort Specialists. • Pre-Listing Real Estate Appraisals • Home Buyer's Advisory Services • Home Seller's Advisory and Appraisal Services • Estate Planning, Wills & Trusts, Trustee's and Executors • Attorney Appraisal Services • Real Property Insurance Value Appraisals • Professional Building Measurement ServicesState Certified Residential Appraisers have advanced real estate training, education, credentials, and experience to appraise complex properties of any type and of any value.Since 2003, we've been delivering independent, third-party objective real estate appraisals for our clients for them to make confident real estate decisions. Servicing Western Michigan, and the West Central counties of Montcalm, Newaygo, and Mecosta. From Grand Rapids, North to Big Rapids and areas in between, Rockford, Cedar Springs, Greenville, Newaygo, Big Rapids, Canadian Lakes, and Stanwood Michigan.
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