Originally published on March 16, 2022, by Danny Gardner for Freddie Mac.

TO: Freddie Mac Sellers

SUBJECT: AUTOMATED COLLATERAL EVALUATION (ACE) ELIGIBILITY

This Guide Bulletin announces:

• An update to ACE eligibility for cash-out refinance transactions – July 17, 2022
• The introduction of ACE+ Property Data Report (PDR) – July 17, 2022

ACE APPRAISAL WAIVER ELIGIBILITY UPDATE

Effective July 17, 2022, Loan Product Advisor®, will transition from offering automated collateral evaluation (ACE) appraisal waivers to offering ACE+ PDR (property data report) for cash-out refinance and certain “no cash-out" refinance Mortgages. This change will allow Sellers and Borrowers to continue to benefit from originating loans without an appraisal while mitigating risks and ensuring we purchase Mortgages secured by properties in acceptable condition.

The chart below reflects updated requirements related to Mortgage purpose, property type, and maximum loan-to-value (LTV)/total LTV (TLTV) ratios for ACE appraisal waivers.

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