Some homebuyers will be able to opt out of a traditional appraisal when buying a home or refinancing an existing mortgage loan backed by Freddie Mac or Fannie Mae
Some homebuyers will be able to opt out of a traditional appraisal when buying a home or refinancing an existing mortgage loan backed by Freddie Mac or Fannie Mae.
Fannie Mae has updated its automated mortgage underwriting system DU to allow property inspection waiver offers on some purchases.
This option for lower-LTV loans will offer cost savings for buyers and will also streamline the process of obtaining a home loan Fannie Mae says.
If lenders believe that a property inspection waiver is not appropriate they can insist on a full appraisal and borrowers can also ask for a full appraisal.
Freddie Mac says that buyers of homes and those refinancing existing mortgages may be able to save around $500 and reduce closing times by up to 10 days where a traditional appraisal isn't needed.
Its automated collateral evaluation (ACE) will assess the need for a traditional appraisal once loan data is submitted by lenders through Loan Product Advisor.
"By leveraging big data and advanced analytics, as well as 40+ years of historical data, we're cutting costs and speeding up the closing process for borrowers," said David Lowman, executive vice president of Freddie Mac's Single-Family Business.
"At the same time, we're providing immediate collateral representation and warranty relief to lenders. This is just one example of how we are reimagining the mortgage process to create a better experience for consumers and lenders," Lowman added.
ACE will be available for qualified home purchases beginning on Sept. 1, 2017; it has been available for qualified refinances since June 19, 2017.
Fannie Mae has updated its automated mortgage underwriting system DU to allow property inspection waiver offers on some purchases.
This option for lower-LTV loans will offer cost savings for buyers and will also streamline the process of obtaining a home loan Fannie Mae says.
If lenders believe that a property inspection waiver is not appropriate they can insist on a full appraisal and borrowers can also ask for a full appraisal.
Freddie Mac says that buyers of homes and those refinancing existing mortgages may be able to save around $500 and reduce closing times by up to 10 days where a traditional appraisal isn't needed.
Its automated collateral evaluation (ACE) will assess the need for a traditional appraisal once loan data is submitted by lenders through Loan Product Advisor.
"By leveraging big data and advanced analytics, as well as 40+ years of historical data, we're cutting costs and speeding up the closing process for borrowers," said David Lowman, executive vice president of Freddie Mac's Single-Family Business.
"At the same time, we're providing immediate collateral representation and warranty relief to lenders. This is just one example of how we are reimagining the mortgage process to create a better experience for consumers and lenders," Lowman added.
ACE will be available for qualified home purchases beginning on Sept. 1, 2017; it has been available for qualified refinances since June 19, 2017.
