Mortgage servicer Freddie Mac will soon be featuring a new program called Automated Collateral Evaluation (ACE) that will allow some buyers to skip the traditional appraisal process in an effort to speed up the closing process and lessen fees for home buyers.
ACE is a computer algorithm that uses data from multiple listing services, public records and historical home values to determined a property’s collateral risk. Not all home purchases will be eligible however as the system will assess if a property needs to be appraised by a human.
According to Freddie Mac those that do qualify should see closing times improved by 10 days and may save up to $500. The new program for home purchases is scheduled to begin on September 1.