Firm becomes part of GSE's list of verified partners
Clear Capital, a national real estate valuation technology company, has launched ClearInsight+, a technology-enabled set of valuation products to support Freddie Mac’s ACE+ PDR – automated collateral evaluation plus property data report – that is a new offering for certain loan types.
“Freddie Mac began offering ACE + PDR in mid-July, allowing lenders to originate cash-out and certain no cash-out refinance loans without an appraisal,” a Clear Capital spokesperson told Mortgage Professional America. “With ACE+ PDR, property information is physically collected on-site by trained data collectors using a Freddie Mac PDR dataset in place of an appraisal.”
The GSE developed the product to ease lenders’ transition into it, the spokesperson suggested: “ClearInsight+ includes Property Data Report (PDR) and Completion Report, which is backed by a nationwide network of trained real estate agents and brokers,” he said. “The set of products was developed to help lenders adopt ACE+ PDR easily at scale.”
On its website explaining the ACE + PDR solution, Freddie Mac explained why it removed cash-out and certain no cash-out refinance loans from ACE eligibility: “Freddie Mac is committed to developing new and enhancing existing valuation options. Our goal is to purchase loans supported by the most reliable and appropriate valuation methods available that help mitigate risk associated with default. Including the PDR provides additional information about the condition of the subject property and allows lenders and borrowers to continue to benefit from originating loans without an appraisal while ensuring we purchase loans secured by properties in acceptable condition.”
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In cases when a PDR states required C5 or C6 repairs, lenders must obtain a completion report that verifies the repairs have been made, a Clear Capital official said. Moreover, in cases when the PDR notes a professional inspection needs to be performed, a licensed professional in that particular field – such as a plumber or pest inspector – must perform the inspection. The lender then must obtain either a signed report that states the repairs are not required, or a signed report or invoice stating the repairs are completed and the issue has been corrected. In certain situations, if the review of the PDR reveals certain characteristics or conditions that make the property ineligible for the offering, the lender may upgrade to a hybrid appraisal (Freddie Mac Form 70H) or traditional appraisal.
Company officials noted Clear Capital’s ClearInsight+ and Hybrid Appraisal are designed to address each scenario and support a complete Freddie Mac ACE+ PDR implementation among mortgage lenders nationwide.
Clear Capital CEO Duane Andrews praised the GSE’s push toward modernity: “We applaud Freddie Mac for their commitment to appraisal modernization and efforts to drive change in our industry,” he said in a prepared statement. “The ACE+ PDR solution will help streamline processes, increase property data accuracy, and ultimately save lenders and borrowers time and money. We’re pleased to support Freddie Mac to offer lenders a comprehensive set of dependable property valuation products they need to adopt ACE+ PDR, all in one spot.”
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Clear Capital purchased CubiCasa last year as part of its own quest to modernize the appraisal process. Kenon Chen, executive vice president of corporate strategy, explained the move to MPA in a March interview: “We’ve been on a multi-year journey – certainly in earnest over the past three years – to modernize and digitize the appraisal process,” he said. “We’ve been highly involved in collaborating with industry participants, lenders, the GSEs on finding ways to better digitize the property inspection process and bring in opportunities to speed up the appraisal process while increasing quality.”
According to its corporate literature, Clear Capital has completed more than 235,000 data collections for loans that utilized various GSE modern appraisal programs.
