Enhancements to Freddie Mac ACE Offer Eligibility

Freddie Mac Bulletin 2020-5 announced enhancements to their automated collateral evaluation (ACE) eligibility to more closely align Freddie Mac’s appraisal waiver policy with Fannie Mae.

Freddie Mac has increased the maximum LTV on rate/term refinance transactions and is now also including cash-out transactions as eligible transaction types.

  • Rate/term refinance primary residence and second home transactions: Maximum 90% LTV (previously 80%)
  • Cash-out refinance (new; previously not eligible):
    • Primary residence: Maximum 70% LTV
    • Second home: Maximum 60% LTV
  • Purchase transactions: No change; maximum 80% LTV

As a reminder, if LPA issues an ACE offer, the transaction must meet all other ACE eligibility requirements as detailed in the “Appraisal – Automated Collateral Evaluation