The technology that has been leading the industry news over the last year has been Fannie Mae’s Day One Certainty program.  This program’s goal is to give lenders immediate certainty that their income, assets, and value will be approved.  This improvement allows sellers relief that loans sold to Fannie Mae will not return as a buy-backs costing thousands!

FHLMC Appraisal Waiver Updates

But did you know that Freddie Mac has been working just as hard on their warranty relief program as well?  Freddie Mac uses their Loan Advisor Suite of tools to provide this same relief to lenders, and with announcement 2017-10 expanded the appraisal portion of the warranty relief program effective September 1st 2017.

Automated Collateral Evaluation program (or ACE) now allows these enhancements.


Purchases now eligible

Purchase transactions are now eligible for ACE. Purchase transactions submitted to Loan Product Advisor after September 1, even if they were previously submitted, will be assessed for ACE eligibility.


$1M value limit

Both purchases and no cash-out refinances will be subject to a one-million dollar value limit.  However, ACE eligible refinances that were submitted to Loan Product Advisor prior to September 1, will not lose the eligibility due to the limit if they’re resubmitted after that date.

This improvement will save your borrowers the cost of the appraisal and lower their application-to-closing time frame.  By eliminating the wait for the appraisal this is a win for consumers and the lenders who sell to FHLMC!


Related Content

Co-signed debt count to borrower DTI?

Asset income can save your loan

7 updated guidelines underwriters need to know


Like this content?

Sign up for our blog to receive these industry insight articles and weekly helpful tips. Our blogs can be found at / blog