We're Speeding Up the Time it Takes to Get to Closing
June 8, 2017
On June 19, our automated collateral evaluation – an option to receive an appraisal waiver for certain Loan Product Advisor® mortgages – will be available.
Our automated collateral evaluation uses big data and advanced analytics to create a faster, less costly origination process. When your loan receives an appraisal waiver through automated collateral evaluation, you have the option to accept the waiver – eliminating the need for an appraisal – while receiving immediate certainty and greater confidence through collateral representation and warranty relief.
Here’s How it Works:
- Submit your loan to Loan Product Advisor.
- Loan is reviewed by automated collateral evaluation.
- You’re notified of eligibility for an appraisal waiver in the Loan Product Advisor Feedback Certificate. Initially, only no cash-out refinances will be assessed for eligibility.
- Deliver your loan through the Freddie Mac Selling System® without an appraisal.
And Now You Have Two Paths to Immediate Certainty
Immediate certainty means reduced repurchase risk related to the value, condition and marketability of a mortgaged property. Automated collateral evaluation is making it easier to achieve immediate certainty since Freddie Mac now provides collateral rep and warranty relief with or without an appraisal.
Path 1: No Appraisal Needed
When Loan Product Advisor’s automated collateral evaluation determines the loan is eligible for an appraisal waiver, you can underwrite the loan without an appraisal and receive collateral rep and warranty relief when you deliver the loan through the Selling System.
Path 2: Appraisal Needed
If the loan is not eligible for an appraisal waiver through automated collateral evaluation, just order an appraisal and submit it to the Uniform Collateral Data Portal® (UCDP®) as you do today. The loan is automatically assessed by Loan Collateral Advisor® and if it’s eligible for collateral rep and warranty relief, you’re notified in the UCDP. You must submit the loan to Loan Product Advisor where you’ll also see eligibility messaging. You’ll then receive final confirmation of rep and warranty relief when you deliver the loan through the Selling System.
You can also track your collateral rep and warranty relief, with or without an appraisal, in Loan Coverage Advisor®.
Two different paths, providing the same peace of mind – immediate certainty and greater confidence.