Automated valuation products were introduced into the lending community in the mid 90's and have changed the business from both a credit risk and operational standpoint. The products have developed over time from black box technology and now are expanding to appraiser assisted AVM's and insured products. They are being paired with products used to detect fraudulent transactions. The rating agencies and secondary markets are now working with their clients to accept these products. The GSE's are developing and reselling their own AVM products. The new question is, with the change in the market, will delinquencies be affected and fraud be increased through the use of these statistical products as opposed to the traditional valuation methods. The topic is particularly timely in light of the slowing of the real estate market in most of the US. The rating agencies are putting out comment papers that address their concerns over the soft markets and the use of automated valuations. Also pertinent is the increasing use of AVM products in Europe.