Automated Collateral Evaluation (ACE) – General FAQ
The information on this page is not part of, and is not a replacement or substitute for, the requirements found in the Freddie Mac Single-Family Seller/Servicer Guide and your other Purchase Documents.
Does Freddie Mac charge a fee to assess whether a loan is eligible for an ACE appraisal waiver?
No, there is no fee associated with an ACE appraisal waiver.
Does population of the appraised value field in Loan Product Advisor® (LPA®) when there is no appraisal report make the loan ineligible for an ACE appraisal waiver?
No, LPA will still assess whether the loan is eligible for an ACE appraisal wavier; however, if an appraisal report is obtained before the loan is delivered to Freddie Mac, the loan will lose eligibility for the ACE appraisal waiver upon delivery. Sellers that have system-to-system (S2S) access to LPA should follow the requirements specific for their loan origination system (LOS) for entering loan data.
How is Freddie Mac able to mitigate valuation and condition risk without requiring an inspection of the property?
Freddie Mac mitigates valuation and condition risk by using models and algorithms that analyze a variety of data, including existing appraisal data, multiple listing service (MLS) data and public records.
How do ACE appraisal waivers impact Freddie Mac’s ability to assess value and/or condition risk, if fewer appraisal reports are being submitted to the Uniform Collateral Data Portal® (UCDP®)?
Most loans delivered to Freddie Mac still include appraisal reports, so there is a minimal reduction in available data. In addition to UCDP appraisal data, Freddie Mac leverages multiple external data sources to effectively mitigate valuation and condition risk.
What impact are ACE appraisal waivers having on appraisers?
While ACE appraisal waivers reduce the number of appraisal reports required by Freddie Mac, most loans delivered to Freddie Mac still require an appraisal report.
Are there regulatory disclosure requirements related to a Seller's acceptance of the ACE appraisal waiver offer?
Sellers that have questions related to required disclosures should contact their legal counsel and/or regulator.
For more ACE FAQs related to the Guide, click here.