What is ACE+PDR?
What are the brand new ACE + PDR loans when refinancing your home? With the advance in technology, Freddie Mac has developed an entirely new form. This new appraisal type went into effect on July 17th, 2022. One great feature is that you will not need to get a home appraisal inspection completed in your home! You simply need an “Observer” to prepare a Floor Plan and date/stamped photos that are generated when the camera takes a picture. Appraisers will then complete the PDR portion of the process. But what does “ACE” or “PDR” even stand for? Read on to find out!
The Process
The photos and floor plan may be captured and completed by any person who meets specific requirements. These professionals are called “Data Collectors”. If the property is accepted by the ACE (Automated Collateral Evaluation) and meets certain criteria then an appraisal waiver may be granted. ACE assesses the need for an appraisal by measuring public records, real estate listing services, and uses proprietary models. If it passes then A PDR (Property Data Report) can be completed by the appraiser with the subject information gathered from the PDC (Property Data Collection) as opposed to a traditional appraisal report.
The Property Data Report (PDR) is a new ‘form’ developed by Freddie Mac. It is not the same as an appraisal report. The PDR is mainly composed of checkbox entries that the appraiser will check to match the property’s characteristics. It also includes a few comment/addendum sections. The appraiser completes the PDR along with the information supplied from the ACE, sketch, and photos. Then the report will be submitted to the client. If approved, an appraisal waiver may be granted and the loan secured.
What Does This Mean for Appraisers?
The newly developed ACE + PDR technology is not to replace appraisers. Instead, it’s to allow appraiser’s more time working on the reports themselves as opposed to a large portion of their time being in the field driving to and completing each inspection. This should allow for better reports with fewer minor errors. Also, appraisers may be able to turn around these reports quicker, being able to complete more reports, thereby making more money. Finally, appraisers will save more money on gas and vehicle maintenance while contributing to a lower environmental footprint.
The downside, as this is a completely new process, appraisers will be working with brand-new software and technology that they have zero experience with. For some of the older more veteran appraisers, this may become quite a challenge. Also, the property data will often not be observed, physically measured, or photographed directly by the appraiser. Some appraisers may be apprehensive about this fact.
Finally, the new Property Data Report ‘form’ is not yet included in appraisal report software for many vendors. Until the appraisal software is updated the appraiser may have to print a physical PDR form, use a pen to input written info and check the required boxes. Then the appraiser will have to scan it to a PDF, include photo pages, the floor plan/sketch, and submit all of the scanned documents back to the client. Until the software is updated to allow ACE + PDR reports to be completed this will place more difficulty on the appraiser. However, it should not be too long before this software is available in all appraisal software.
What does this mean for the Homeowner?
Homeowners will be able to secure their loans more quickly. Busy homeowners will not be forced to make time in their schedule to allow the appraiser to come to inspect their property. However, they will still be required to be home for the data collector to come photograph and collect the required information to complete the floor plan. The entire loan process will be smoother for the homeowner.
Closing
Member’s Appraisal Management plans to roll out this new product within the next month of November 2022. Stay tuned!
