MCLEAN, Va. -Freddie Mac said a feature to be added early next year to its automated underwriting system will give borrowers approved for a Freddie loan the option of forgoing a property appraisal and inspection on certain mortgages.
Borrowers will pay a $200 "delivery fee" for the option, and Freddie will relieve the lender of representations-and-warranties on the home's property value, marketability, and condition. Freddie said the national average for an appraisal fee is $344.
It said the feature will spare borrowers a long-standing collateral documentation requirement and speed up the loan approval process for lenders and borrowers. It will also reduce collateral assessment costs up to 40%, the company said.
It said eligible products include first-lien money loans with total loan-to-value ratios of up to 89%. For loans that do not meet these parameters, it said, it will streamline its appraisal requirements to a 2055 Interior or a Uniform Residential Appraisal Report.