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For the full year of 2023, 476 lenders have directly delivered loans using the Freddie Mac ACE+ PDR (Automated Collateral Evaluation plus Property Data Report) and Fannie Mae Value Acceptance and Property Data (VA+PD) solutions. This represents 26.0% of the total of 1,833 active GSE sellers in the year.
For December 2023, GSE originations totaled $43.8BN, down 8.15% on the prior month. For property valuations, $38.2BN (87.3%) closed using appraisals, down 6.94%, and $5.92BN (11.2%) closed utilizing appraisal waivers, also down by 15.5% on the prior month. Lenders closed $704MM (1.61%) with inspection-based waivers, down 16.7% on November 2023.
Overall, inspection-based waivers comprised 12.61% of the combined appraisal waiver (non-appraisal) solutions by loan amount, marginally lower than November. By number of loans delivered, inspection-based waivers remain above 15.1% of all waiver solutions.
Banks, credit unions and IMBs
The Freddie Mac ACE+ PDR market share of inspection-based waivers jumped to 62%, with volume down 5.2% over the prior month. There are now 284 lenders who have delivered loans year-to-date, including 159 independent mortgage companies and 125 banks and credit unions; the number of participants increased slightly over last month.
Fannie Mae VA+PD market share reduced further to 38% as utilization dropped 30.4% month-over-month. Fannie Mae participation increased to 368 lenders participating for the full year, including 172 community banks and credit unions, and 195 non-banks.
Freddie Mac ACE+ PDR advances for purchase
Retail channels were 59.9% of inspection-based waivers in December, with loan delivery shrinking 16.75% to $422M. Mortgage brokers volume reduced 18.1% to 24.4% and $172M delivered. Delivery from the correspondent channel grew share slightly to 15.7% at $111M.
In August the Freddie Mac ACE+ PDR solution expanded to include eligible purchase transactions with an LTV up-to 80%. Since that time Freddie Mac share of total purchase transactions has grown steadily, from 29.9% in August to 63.8% in December. From July to December Fannie Mae purchase share dropped from 40.1% to 21.9%.
Top lenders expanding in December
With mortgage volumes down again December, most lenders volume of inspection-based waivers also declined. There were however some notable increases in December as large lenders increase their utilization, with Fairway Independent, NewRez, JP Morgan Chase, Better, Planet Home Lending and Churchill posting 241%, 25%, 350%, 21%, 100% and 400% gains over the prior month.
More about Freddie Mac ACE+ PDR and inspection-based waivers
For lenders who wish to learn more, you can check out the the following articles. These include links to the Freddie Mac ACE+ PDR and Fannie Mae collateral valuation modernization strategies, new programs, selling guide updates, FAQs, process flow, job aids, approved technology and service providers, and information about the property data standards and user guides:
- Implementing the Freddie Mac Inspection-based Waivers – Quick Reference for Lenders
- Implementing the Fannie Mae Inspection-based Waivers – Quick Reference for Lenders
In addition, you can access the Freddie Mac ACE+ PDR Solution page and the Fannie Mae Value Acceptance + Property Data FAQ.