Consumer group calls for ‘strict testing’ to follow rule on AI-enabled home valuations

Finance-sector agencies correctly included anti-discrimination in a new rule to govern artificial intelligence systems used by lending institutions to assess a dwelling’s worth as collateral, but its success will ultimately depend on whether stakeholders can establish a sufficiently stringent testing approach, according to a leading consumer advocate.

“By including a fifth quality control standard that requires originators and secondary market issuers to ensure their [Automated Valuation Models] comply with anti-discrimination laws, the rule makes certain that regulators will have the...