Originally launched in 2017 for single-family home loans it purchases, Freddie Mac’s automated collateral evaluation (ACE) appraisal waiver gives eligible borrowers of mortgages secured by condos the opportunity to realize savings in cases where it’s determined a traditional appraisal isn’t needed. In some instances, borrowers could save approximately
“We continue to see the share of condo loans we purchase increase, especially among first-time homebuyers,” said
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 condominium property is eligible for an ACE waiver, lenders must submit loan data through Loan Product Advisor®, Freddie Mac’s automated underwriting system. ACE for condominium purchases and refinances will be available beginning
If ACE determines that the estimated value or purchase price 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
More information about Loan Advisor Suite is available online.
Source: Freddie Mac