August 22nd, 2017 5:09 AM by Jackie A. Graves
Creates “better experience” for lenders and
Freddie Mac announced
Friday it is making buying a home a better experience for lender and homebuyers
– by cutting the appraiser out of the process.
The new Automated Collateral Evaluation assesses the need for a
traditional appraisal by using proprietary models and utilizing data from
multiple listing services and public records as well as the historical home
values in order to determine collateral risks.
leveraging big data and advanced analytics, as well as 40+ years of historical
data, we're cutting costs and speeding up the closing process for borrowers,”
said David Lowman, Freddie Mac executive vice president of single-family
the same time, we're providing immediate collateral representation and warranty
relief to lenders,” Lowman said. “This is just one example of how we are
reimagining the mortgage process to create a better experience for consumers
can determine if a property is eligible for ACE by submitting the data through
Freddie’s loan product advisor. This will then assess credit, capacity and
collateral to determine the quality of the loan. Lenders will receive the risk
assessment feedback in real time.
will be available for home purchases beginning on September 1, 2017.
this summer, the company announced it began using this product on qualified
refis beginning June 19, 2017.
we launched loan advisor suite in July 2016, we set out to give our customers
certainty, usability, reliability and efficiency,” said Andy Higginbotham,
senior vice president of strategic delivery and operations for Freddie Mac's
single-family business. “ACE is our most recent capability to deliver on that
Fannie Mae also
updated its policy on appraisals this year, and clarified its
“existing policy that allows an unlicensed or uncertified appraiser, or an
appraiser trainee to complete the property inspection. When the unlicensed or
uncertified appraiser or appraiser trainee completes the property inspection,
the supervisory appraiser is not required to also inspect the property.”
By Kelsey Ramírez - To
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