Freddie Mac Elevates Automated Collateral to Include Purchase Transactions
August 23, 2017, Freddie Mac issued Guide Bulletin 2017-13, announcing the expansion of the Automated Collateral Evaluation (ACE) program. Key points of the bulletin are provided below.
On August 18, the Enterprise announced ACE, which provides Freddie Mac sellers with the option to waive appraisal requirements for certain Loan Product Advisor® Mortgages. The ACE option announced in Bulletin 2017-8 applied only to “no cash- out” refinance transactions. All requirements for ACE announced in Bulletin 2017-8 apply to purchase transactions. ACE is effective September 1, 2017.
Ineligible Mortgages
The list of mortgages that are ineligible for an ACE appraisal waiver in Section 5601.9(c)(iv) of the Guide include the following:
- Non-arm’s length transactions
- Purchases of REO properties (as identified in the sales contract)
- Texas Equity Section 50(a)(6) Mortgages
- Mortgages with an estimate of value or purchase price greater than $1,000,000
Additionally, sellers may not accept the appraisal waiver offer if the seller is aware of adverse physical property conditions identified in the sales contract, property inspection or disclosure from the borrower that warrant an appraisal being obtained.
View the Guide Bulletin 2017-13
http://www.freddiemac.com/singlefamily/guide/bulletins/pdf/bll1713.pdf
View the August 18, 2017 News Article
http://www.freddiemac.com/singlefamily/news/2017/0818_ace_purchases.html
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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