house.The Russian Federation will implement AI for real estate valuation with a mortgage

DOM Bank.The Russian Federation, Sber and the Fintech Association will jointly develop AI technologies to digitalize and improve the convenience of the mortgage process. This was reported by the state-owned company DOM.RF.

They noted that within the framework of cooperation, it is planned to address issues of scaling and developing AI technology for assessing the market value of real estate. Such a service was previously piloted in the regulatory sandbox of the Bank of Russia.

As noted by the Managing Director, a member of the Board of the HOUSE.Russian Federation, Deputy Chairman of the Board of DOM Bank.Russian Federation Nikolay Kozak, "mortgages are one of the most digitized banking products today," but so far real estate valuation often "does not allow users to obtain a mortgage and register real estate completely online." The introduction of the new tool "will help simplify the client's journey, speed it up and improve the accuracy of estimates for future real estate transactions," he stressed.

into the house.The Russian Federation emphasized that the introduction of automated assessment is another stage in the digitalization of mortgage lending. The technology involves the use of machine learning (ML) to estimate the value of real estate using a comparative method. As a result, it will be possible to determine the collateral value, arrange the property as collateral for the loan, and form a mortgage. The introduction of AI technology is also designed to speed up the transaction process, reduce labor costs and expenses of borrowers, and reduce the bank's risks.

According to Dmitry Ishchenko, Deputy General Director of the Fintech Association, "a lot of work needs to be done to improve technology and regulations," but the end result "will make the mortgage process more convenient and transparent for banks." In addition, the transparency of the real estate acquisition process for clients will be increased, he added.

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