Valuation innovation in mortgage lending: Accurate Group’s Paul Doman on what lenders need to know

How can lenders harness the latest valuation technology without falling behind? In this HousingWire exclusive, Paul Doman outlines how Accurate Group is helping the mortgage industry adapt to changes in valuations, including advances in AVMs, risk management tools and compliance requirements. Doman also discusses the strategic role Accurate Group plays in helping partners navigate these shifts effectively. 

This conversation provides actionable guidance on preparing for the Universal Appraisal Dataset redesign, testing AVMs effectively, and structuring valuation cascades to ensure compliance and efficiency. Doman also offers forward-looking insight into how lenders can stay ahead of the curve over the next 12-18 months. 

“The Accurate Group is one of the industry’s largest valuation businesses,” Doman said. “We have one of the largest appraisal management companies in the U.S., a significant technology business in valuation, and a title and data services arm that supports lenders on the servicing side. We’re a vital asset to the lending community — connecting them to evaluating collateral, which is such an important part of real estate lending.”

That connection, Doman explained, is growing more complex as the valuation process modernizes. “It’s amazing how much change is going on right now — regulatory change, technology change, credit risk, compliance, and change in product mix driven by the GSEs,” he said. “Not all lenders realize the magnitude of what’s coming with UAD 3.6, which is a dramatic change for their loan origination systems and the entire appraisal process.”

Doman said, “Appraisers have worked with antiquated technology for decades — often still with a clipboard and pencil. For years, appraisals were static PDF forms. Now, UAD is moving to a standardized, discrete data set — a true digital format, similar to what already exists in credit reporting. It’s a seismic shift.”

That shift will require every part of the process from appraisers to lenders to software providers to “level up,” as Sanchez noted. “It’s a total transformation,” Doman said. “From the appraiser’s desktop to the lender’s integration, everything changes. The underwriting and collateral risk teams will be working with a completely different set of data.”

To help clients manage the transition, Accurate Group is already preparing both internally and externally. “We’re ahead of the curve so we can help our lenders and appraisers be ready,” Doman said. “The GSEs have told us they’re not moving the dates. Our chief appraiser surveyed our vendor base, and thankfully, more than 90% of our appraisers are on board. With the right training, we don’t expect significant slowdowns or cost increases — but the key is getting everyone to standardize their data set.”

Beyond UAD 3.6, Doman said automated valuation models (AVMs) are another major focus for lenders and for regulators. “We’re really a leader in the AVM space, primarily because of our independence,” he explained. “We help lenders validate how to use AVMs — whether that’s at the point of sale, for portfolio or non-QM loans, or for servicing and capital markets.”

Doman further explained Accurate Group’s role for lenders. “We help them set up risk-based analyses of their AVM usage,” Doman said. “We maintain neutrality, support all AVM companies, and continuously evaluate their performance. Regulators are extremely focused on AVM cascades right now, so we make sure our clients are establishing compliant, efficient systems that won’t raise red flags during audits.”

Looking ahead, Doman sees AI and process automation transforming how collateral is evaluated. “AI is changing the game for us, for appraisers, and for lenders,” he said. “With UAD’s discrete data set, we can automate many quality control processes, reduce rework, and produce higher-quality appraisal reports.”

Accurate Group has already implemented AI-driven quality control systems. “We’ve partnered with technology providers to help us produce higher-quality reports faster,” Doman said. “AI also helps assign appraisal orders more efficiently — getting the right appraiser to the right job in the right market.”

Still, he emphasized, AI is not a replacement for human expertise. “AI won’t replace humans — it will make them better,” he said. “Human oversight is essential in something as fundamental as verifying collateral value. We learned from the mortgage crisis that we can’t let automation run unchecked. The goal is to deploy humans in meaningful ways alongside AI.”

“Our goal is to stay out front of all this — to embrace change, help our lenders and vendors adapt, and make the process faster, smarter, and safer for everyone involved.”