As Automated Valuation Models (AVMs) continue to gain traction across the mortgage industry, one critical question sits just beneath the surface: How confident should we be in the values they produce?

In this episode of MISMO MIC’D Up, I sit down with Eric Fox, Chief Economist and SVP of Analytics at Veros Real Estate Solutions, to unpack the concept of confidence scoring—what it is, why it matters, and how it has historically introduced friction into the loan manufacturing process.

We start with the fundamentals, breaking down confidence scores in plain English and exploring how they function as a signal of risk, not certainty. From there, Eric walks through the real-world challenges lenders have faced for years: inconsistent scoring methodologies across AVM providers, difficulty comparing results, and the operational burden of managing multiple interpretations of “confidence.”

That sets the stage for one of the most important standardization efforts underway today.

Together, we dive into the work of the MISMO AVM Development Workgroup and the creation of the Common Confidence Score—a standardized, easy-to-understand metric designed to bring consistency, clarity, and comparability to AVM outputs across the industry.

Eric shares a behind-the-scenes perspective on what it took for competitors to collaborate under the MISMO umbrella, why lender participation was critical to reaching consensus, and how the group balanced statistical rigor with real-world usability.

But this conversation goes beyond the “what” and gets into the “why it matters.”

We explore how a standardized confidence score can:

• Reduce operational complexity and cost for lenders
• Improve transparency and decision-making for investors
• Support more consistent risk assessment across loan portfolios
• Accelerate broader adoption of AVMs in origination and beyond

We also connect the dots to broader market trends, including increased regulatory openness to modern valuation tools and the growing demand for faster, more cost-efficient lending processes.

To bring it all home, Eric shares his forward-looking perspective on what success looks like over the next three to five years—and why the Common Confidence Score could play a role similar to foundational infrastructure in enabling scale across the mortgage ecosystem.

If you’re a lender, investor, or technology provider navigating the evolving world of property valuation, this is a must-listen conversation that will leave you with both clarity and a deeper appreciation for the role standards play in driving industry progress.