Freddie Mac Introduces Evaluation-Free Mortgage Program to Buy Loans
Last August 2017, Freddie Mac revealed that they want to create a better experience for both homebuyers and lenders when buying a home. This is why they chose to remove the evaluator out of the entire Freddie Mac multifamily loans process.
They now offer a new product that will eliminate the evaluation approach out of eligible refinances and home purchases. This decision will help borrowers save around $500 in fees and decrease closing times by up to 10 days.
Cost Effective for Borrowers
The Automated Collateral Evaluation appraises the requirement for the common assessment by using data from several public records and listing services, as well as, proprietary models. They even utilize historical home value to figure out collateral risks.
By taking advantage of advanced analytics, big data and over four decades of historical data, they can reduce the charges for borrowers and snip processing time.
Efficient Process for Lenders
For lenders, the company is offering warranty relief and instant collateral representation. They share that this is just a sample of how they are reforming the mortgage approach to form better experience for lenders and consumers.
Lenders will be able to figure out if a property is qualified for ACE by forwarding the data through the loan product advisor of Freddie Mac. They will then evaluate collateral, credit, and capacity to control the quality of the loan. In turn, lenders will get risk evaluation response immediately.
Just this September, they released this product for home purchases. They even discussed that they started using it on eligible refis just last June.
Since they established the loan adviser suite last July 2016, Andy Higginbotham says that they decided to offer their customers efficiency, certainty, usability, and reliability. He is the senior vice president of strategic delivery and operations for Freddie Mac’s single-family business.
He disclosed that this is their latest capacity to deliver on the said vision.