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Automated Collateral Evaluation (ACE)

Loan Product Advisor® (LPA®) ACE is an automated collateral risk assessment leveraging our  proprietary models, along with historical data and public records to let you deliver loans to Freddie Mac without an appraisal report.

ACE Requirements and Eligibility

Lenders and borrowers can reap the cost and time saving benefits of ACE on a variety of loan types. The Single-Family Seller/Servicer Guide (Guide) provides details about eligibility and requirements.

3 Ways ACE Can Help Lenders and Borrowers

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Reduce Costs

Borrowers can skip the appraisal fee - saving on average $600. As of September 2025, ACE has saved borrowers over $2.3B.

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Speed Up Time to Close

ACE loans close faster than those that use appraisal reports - as of Q2 2025, on average saving 14 days for purchases and 12 days for refinances.

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Simplify Loan Origination

With ACE the appraisal report requirement is waived, meaning there’s no appraisal report to order, track and review.

How ACE Works

  • Step 1: Submit loans to Loan Product Advisor® before you get an appraisal
  • Step 2: Provide an estimated value of property (for refinances) or purchase price (for purchase).
  • Step 3: Review the Loan Product Advisor Feedback Certificate to see if the loan is eligible for ACE.
     

Resources

ACE FAQ

ACE is a Loan Product Advisor capability that leverages proprietary models, 40-years of historical data, and public records to allow lenders to underwrite certain loans without a traditional appraisal.

ACE-ing the Credit Risk Test

See how our research shows loans originated with ACE have lower delinquency rates compared to otherwise similar loans.

ACE+ PDR

ACE+ PDR is one of five collateral valuation offerings that allows lenders to originate certain loans without an appraisal. Additional property information is physically collected on-site by trained data collectors using the proprietary Freddie Mac PDR dataset, in lieu of an appraisal.

Collateral Valuation and Appraisals

Freddie Mac is committed to reinforcing the integral role of appraisers and appraisals in the mortgage process, while developing new and enhancing existing valuation methods. 

Collateral Training

Dig deeper into what you need to know about collateral with our Collateral Training offerings.

Loan Product Advisor

Learn how Freddie Mac’s automated underwriting system gives you access to credit requirements and the tool’s view of risk so you can easily assess your loan’s overall underwriting risk.

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