Freddie Mac Introduces Appraisal Alternative

August 18, 2017, Freddie Mac announced that consumers who are buying homes or refinancing existing mortgage loans may be eligible for an automated appraisal alternative.   The program is available on both home purchases and refinances.  Key points from Freddie Mac’s press release are provided below.

Borrowers may be able to realize savings in some instances of approximately $500, and closing times may be reduced by as many as seven to ten days in cases where Freddie Mac’s innovative new capability determines a traditional appraisal isn’t needed.

Freddie Mac’s automated collateral evaluation (ACE) assesses the need for a traditional appraisal by leveraging proprietary models and using data from multiple listing services and public records as well as a wealth of historical home values to determine collateral risks.

To find out if a property is eligible for ACE, lenders must submit loan data through Loan Product Advisor®, the cornerstone of Loan Advisor Suite®. ACE will be available for qualified home purchases beginning on Sept. 1, 2017; it has been available for qualified refinances since June 19, 2017.

If ACE determines that the estimated value of the home provided by the lender is acceptable, the lender may receive immediate representation and warranty relief related to the value, condition and marketability of the property upon delivery of the loan to Freddie Mac.

For more information on the Loan Product Advisor® suite, click here:




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Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.

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