Over the last few years, we have been able to take advantage of property inspection waivers (PIW) or automated collateral evaluations (ACE) for some purchases and no cash-out refinances. This has been a huge benefit for clients. It saves them as much as $600 and eliminates potential stress and complications.
Freddie Mac has now added a new type of property evaluation called ACE + PDR (automated collateral evaluation + property data report). This can be used for some cash-out refinances and certain no-cash-out refinances that were not previously eligible for ACE. The PDR provides additional property information that is physically collected on-site by a trained data collector using the proprietary Freddie Mac data set. The data collection/property inspection does not need to be done by an appraiser since they are not commenting on the value, only the condition of the property.
The first ACE + PDA that we did was for a recent cash-out refinance. It was especially helpful in this case because it is for a client who needs to refinance to do an equity buyout due to a separation, and the couple had already agreed on the value of the marital home. So, another appraisal with most likely a different value could have been a problem! And there was the added benefit to my client that the ACE + PDR was $225 instead of the usual appraisal cost of $600. If you would like to learn more about this appraisal option, please contact me.