Exciting Appraisal Alternative

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.

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