Subject: Freddie Mac Updates to ACE and PDR Eligibility
Date: July 19, 2022
Freddie Mac (FHLMC) recently communicated changes to their Automated Collateral Evaluation (ACE) eligibility. This change will result in LPA findings offering EITHER an ACE – OR – an ACE & Property Data Report (PDR) in lieu of an appraisal.
These changes are effective on new LPA submissions on or after July 17, 2022.
ACE Offer
With this update, the following transactions continue to be eligible for an ACE offer from Loan Product Advisor (LPA):
| Transaction Type |
Property Type |
Max LTV/CLTV |
| Purchase | Primary Residence or Second Home |
80% |
| Rate/Term Refinance | Primary Residence or Second Home |
90% |
*Cash-Out and certain rate/term transactions that were previously eligible will now no longer be eligible for an ACE appraisal waiver.
ACE & PDR Offer (NEW)
Cash-Out and certain rate/term refinance transactions may now be eligible for an ACE offer supplemented with a Property Data Report (PDR) subject to the following LTV restrictions:
| Transaction Type | Property Type | Max LTV/CLTV |
| Rate/Term Refinance | Primary Residence or Second Home | 90% |
| Cash-Out Refinance | Primary Residence | 70% |
| Second Home | 60% |
When eligible, LPA findings will reflect “ACE + PDR” and the following applies:
- An “Accept” finding is required
- An interior & 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 updated Freddie Mac Product Guidelines posted on the REMN website for complete eligibility requirements (ACE & PDR details are listed on page 80 as of this publication).
Ordering an ACE or Property Data Report (PDR):
For all states, all Freddie Mac ACR & PDR reports must be ordered through Class Valuation (this is also indicated on the REMN Conventional Appraisal Ordering Map).
This only applies if an ACR & PDR option is offered; there are no changes to AMC requirements outside of this scope.
*Note: If an ACE & PDR later converts to a full appraisal, continue to work with Class Valuation to complete the order
**Please contact your Account Executive with any questions**