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Automated Collateral Evaluation

Loan Product Advisor automated collateral evaluation ace

Loan Product Advisor® automated collateral evaluation (ACE) leverages our proprietary models, along with historical data and public records to let you to originate eligible loans without a traditional appraisal.

Save Time and Money with ACE – Get Your Edge

David Brickman

Terri Merlino, Freddie Mac's Chief Credit Officer, talks about how ACE is creating a quicker path to closing.

ACE helps you speed up loan origination and can improve your borrower's
experience, by providing these benefits:

  • Close faster – save 7-10 days, or more, without a traditional appraisal.
  • Save money – save $300-$700 with no appraisal fee.
  • Get immediate certainty – loans are automatically eligible for collateral representation and warranty relief.


Ace use LPA

How ACE Works

  1. Submit your loans to Loan Product Advisor before you get an appraisal.
  2. Provide an estimated value of property (for refinances) or purchase price (for purchases).
  3. Review the Loan Product Advisor Feedback Certificate to see if the loan is eligible for ACE.


To be eligible for ACE, the loan must be submitted to Loan Product Advisor and delivered to Loan Selling Advisor. The below table provides a summary of eligibility. For a complete list of requirements, please refer to the Single-Family Sell/Servicer Guide.

Eligible Loans

  • Loan Product Advisor Accept risk class
  • 1-unit primary residence or second home
  • Condominium units*
  • No cash-out refi transactions with LTV/TLTV less than or equal to 80%
  • Purchase transactions with LTV/TLTV less than or equal to 80%

Ineligible Loans

  • An appraisal has been obtained and submitted to the UCDP®
  • Loan Product Advisor Caution risk class
  • Cash-out refinances
  • Investment properties
  • 2- to 4-unit properties
  • Manufactured home or leasehold estate
  • Properties with resale restrictions
  • Construction Conversion and Renovation Mortgages
  • Non-arm's length transactions
  • Purchases of REO properties (as identified in the sales contract)
  • Texas Equity Section 50(a)(6) mortgages
  • Mortgages with an estimate of value or purchase price greater than $1million
  • Freddie Mac Relief Refinance MortgagesSM – Same Servicer or Open Access

*Condominium unit loans that are eligible for ACE must still comply with Freddie Mac’s condominium project review and eligibility requirements.


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