Consumers who buy a condo or refinance an existing condo mortgage may be eligible to bypass an in-person appraisal and have a faster automated appraisal, Freddie Mac recently announced.
Freddie Mac’s automated collateral evaluation appraisal waiver gives eligible borrowers of mortgages for condos the opportunity to save on the traditional appraisal. Borrowers could save about $500 on appraisal fees and potentially close seven to 10 days faster, Freddie Mac notes.
“We continue to see the share of condo loans we purchase increase, especially among first-time home buyers,” says David Lowman, executive vice president of Freddie Mac’s single-family business. “ACE for condos will help increase the efficiency of the mortgage origination process, offer greater certainty, and help save our clients, and their customers, time and money.”
Freddie Mac uses ACE to assess the need for a traditional appraisal by culling data from multiple listing services and public records as well as historical home values to determine collateral risks. Lenders must submit loan data through Freddie Mac’s automated underwriting system, the Loan Product Advisor, to see if the condo property is eligible for the ACE waiver.
ACE for condo purchases and refinances will be available starting July 16.