DART APPRAISAL SUPPORTING ACE + PDR FOR FREDDIE MAC - ELIGIBLE LOANS
In 2017, Freddie Mac introduced Loan Product Advisor® (LPASM) automated collateral evaluation (ACE), an appraisal alternative, to save eligible borrowers time and money in the home-buying or refinance process. Fast forward to today, Freddie Mac has released a new extension of that solution: ACE+ PDR (automated collateral evaluation plus property data report). This product will continue to help borrowers and sellers to benefit from Freddie Mac-eligible loans that can be originated without an appraisal.
Freddie Mac transitioned from offering ACE appraisal waivers to offering ACE+ PDR for cash-out refinances and certain no cash-out refinances. The lender will receive an LPA Feedback Certificate that indicates the loan is eligible for this offering.
Greenlight – now that the loan is eligible for ACE+ PDR, what’s next? That’s where Dart Appraisal is here to help. Starting July 17, 2022, you can order the PDR through us. A nationwide panel of trained property data collectors using Freddie Mac’s PDR data set will be utilized to perform an on-site data collection and complete this report.
What happens if the PDR reveals that the property is no longer eligible for the offer, or if an upgrade to an appraisal is required? No problem, Dart can assist with that as well. Instead of ordering a traditional appraisal, Freddie Mac may accept a hybrid appraisal on Form 70H or the appropriate appraisal report form that coincides with the property type. When a hybrid appraisal on Form 70H can be completed, the lender can place the order with Dart, and one of our experienced appraisers will utilize the data and photographs from the PDR to develop the opinion of market value and complete a hybrid appraisal.
Appraisers completing a hybrid appraisal must disclose the identity of the property data collector within the report, and the original PDR must be included as an addendum. The data collection date of the PDR must also be on or before the effective date of the hybrid appraisal, and the effective date of the appraisal is the date the appraiser developed their opinion of market value. If the PDR data collection date is more than 12 months before the effective date of the hybrid appraisal, a new PDR will be required. Appraisers must follow all other Freddie Mac requirements in the Freddie Mac Single-Family Seller-Service Guide when completing the hybrid appraisal.
Check out the Guide Bulletin for more details here: https://guide.freddiemac.com/app/guide/bulletin/2022-13
Ready to order your first PDR? Contact your Account Manager or firstname.lastname@example.org for pricing and turn times for this product today!