Freddie Mac Bulletin 2022-6 announced updates to their automated collateral evaluation (ACE) appraisal waiver offer eligibility. With this change, LPA may offer an ACE or an ACE + PDR in lieu of an appraisal.
With this update, the following transactions continue to be eligible for an ACE offer from Loan Product Advisor (LPA):
Cash-out transactions and certain rate/term transactions will no longer be eligible for an ACE appraisal waiver (currently eligible)
ACE + PDR Offer (New)
Cash-out and certain transactions may now be eligible for an ACE offer supplemented with a property data report (PDR) subject to the LTV restrictions below:
When eligible, the LPA findings will reflect “ACE + PDR” and the following applies:
- An “Accept” finding is required
- An interior and exterior inspection of the property is required
- The inspection may be completed by an appraiser, appraiser trainee, or non-appraiser who meets specific requirements
Refer to the Appraisal – Automated Collateral Evaluation – ACE Offer With PDR Requirement in the Homebridge Freddie Mac program guidelines located on the Products and Guidelines page for complete eligibility requirements.
Requesting a Property Data Report (PDR)
The PDR must be requested through a Homebridge approved AMC. As a reminder, Freddie Mac transactions require the use of a specific AMC based on the region of the country where the property is located. Click here to view the Homebridge Conventional Regional Coverage Map
At this time, not all AMCs will provide a PDR, therefore if the loan receives an ACE + PDR offer and the property is located in one of the regions identified below, Brokers must request the PDR from Nationwide Property & Appraisal Services
- West Region (including Brokers assigned to the Homebridge Inside Sales Team)
- Southeast Region
The above only applies if an ACE + PDR is offered; there is no change to the required AMC if an ACE + PDR is not offered.
NDC/EB Transactions with AMC Exception
NDCs/EBs that have been granted an exception by Homebridge to use an AMC not approved by Homebridge, the following applies when requesting the PDR
- The PDR may be requested through the non-approved AMC if the AMC provides PDRs
- If the non-approved AMC does not provide PDRs, request the PDR from Nationwide Property & Appraisal Services
NOTE: Brokers, Emerging Bankers, and Non-Delegated Correspondents are not permitted to directly order the appraisal
This change is effective for new submissions to LPA on or after July 17, 2022
The Freddie Mac guidelines have been updated and posted on the Homebridge website at www.HomebridgeWholesale.com
If you have any questions, please contact your Account Executive