source:
  type: regulation
  id: fhlmc-5602.3
  authority: Freddie Mac Single-Family Seller/Servicer Guide §5602.3 — Automated collateral evaluation (ACE) (05/06/26)
  description: "Freddie Mac Guide §5602.3 (Automated collateral evaluation (ACE)). Gap-fill (verbatim, ID-diff).\
    \ \n"
obligations:
- id: fhlmc-5602.3-0
  canonical_id: fhlmc-5602.3-0
  section: Freddie Mac Guide 5602.3
  description: '5602.3 Automated collateral evaluation (ACE): (05/06/26) This section contains requirements related
    to: ■ Automated collateral evaluation (ACE) overview ■ Process for qualifying for and accepting the ACE offer
    ■ Eligible Mortgages ■ Ineligible Mortgages ■ Conditions that prevent the Seller from accepting an ACE offer'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5602.3 — Automated collateral evaluation (ACE) (05/06/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '(05/06/26) This section contains requirements related to: ■ Automated collateral evaluation
      (ACE) overview ■ Process for qualifying for and accepting the ACE offer ■ Eligible Mortgages ■ Ineligible
      Mortgages ■ Conditions that prevent the Seller from accepting an ACE offer'
    drafter_attestation: Verbatim from Freddie Guide §5602.3 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5602.3-1
  canonical_id: fhlmc-5602.3-1
  section: Freddie Mac Guide 5602.3
  description: '5602.3 Automated collateral evaluation (ACE): 602-8 ■ Acceptable age of the ACE offer ■ Data changes
    that impact ACE eligibility ■ ACE requirements for Settlement Dates more than 120 days after the Note Date ■
    ACE eligibility in disaster areas ■ Seller representation of property review or valuation (a) ACE overview For
    certa…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5602.3 — Automated collateral evaluation (ACE) (05/06/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '602-8 ■ Acceptable age of the ACE offer ■ Data changes that impact ACE eligibility ■ ACE requirements
      for Settlement Dates more than 120 days after the Note Date ■ ACE eligibility in disaster areas ■ Seller representation
      of property review or valuation (a) ACE overview For certain Loan Product Advisor® Mortgages, the Seller may
      receive the option to accept an ACE offer and originate the Mortgage without an appraisal. If the Seller accepts
      the ACE offer, Freddie Mac will: ■ Accept the value of the Mortgaged Premises as: ❑ The purchase price of
      the Mortgaged Premises, for purchase transactions, or ❑ The estimated value of the Mortgaged Premises, for
      refinance transactions ■ Not exercise its remedies, including the issuance of repurchase requests, in connection
      with a breach of the Seller’s selling representations and warranties related to the value, condition and marketability
      of the Mortgaged Premises For refinance transactions, the Sellers must have written procedures in place that
      prohibit changes to the estimated value in Loan Product Advisor for the purpose of obtaining ACE or more favorable
      mortgage terms (e.g., avoiding mortgage insurance). The procedures must include a process for establishing
      the estimated value, which may include, but is not limited to, the use of the Borrower’s estimated value,
      an Automated Valuation Model (AVM) or an online valuation tool or website. (b) Process for qualifying for
      and accepting the ACE offer For a Mortgage to qualify for an ACE offer: ■ The Mortgage must be an Accept Mortgage
      ■ The Last Feedback Certificate must indicate the Mortgage is eligible for representation and warranty relief
      with ACE. (This represents the “offer.”)'
    drafter_attestation: Verbatim from Freddie Guide §5602.3 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5602.3-2
  canonical_id: fhlmc-5602.3-2
  section: Freddie Mac Guide 5602.3
  description: '5602.3 Automated collateral evaluation (ACE): 602-9 ■ The final submission of the Mortgage to Loan
    Selling Advisor® must indicate the representation and warranty relief status is “Y” or “Yes” In lieu of accepting
    the ACE offer, the Seller may deliver the Mortgage with a PDR or an appraisal report if the eligibility requireme…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5602.3 — Automated collateral evaluation (ACE) (05/06/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '602-9 ■ The final submission of the Mortgage to Loan Selling Advisor® must indicate the representation
      and warranty relief status is “Y” or “Yes” In lieu of accepting the ACE offer, the Seller may deliver the
      Mortgage with a PDR or an appraisal report if the eligibility requirements for ACE+ PDR or the selected appraisal
      type are met To accept the ACE offer, the Seller must deliver the Mortgage with the ULDD Data Points described
      in the data delivery instructions in Section 6302.10(c). (c) Eligible Mortgages To be eligible for an ACE
      offer, the Mortgage must: ■ Be secured by a 1-unit dwelling that is either a Primary Residence or a second
      home ■ Meet the following occupancy and maximum loan-to-value (LTV)/total LTV (TLTV) ratio requirements: Mortgage
      purpose Occupancy type Maximum LTV/TLTV ratios Purchase Primary Residence or second home 90% “No cash-out”
      refinance Primary Residence or second home 90% Cash-out refinance Primary Residence 70% Second home 60% (d)
      Ineligible Mortgages The following Mortgages are ineligible for ACE: ■ Mortgages for which an appraisal or
      a PDR has been obtained in connection with the Mortgage ■ Mortgages secured by one of the following: ❑ A Manufactured
      Home, or ❑ A leasehold estate'
    drafter_attestation: Verbatim from Freddie Guide §5602.3 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5602.3-3
  canonical_id: fhlmc-5602.3-3
  section: Freddie Mac Guide 5602.3
  description: '5602.3 Automated collateral evaluation (ACE): 602-10 ■ Mortgages secured by Mortgaged Premises subject
    to resale restrictions (excluding those subject to age-based resale restrictions) ■ Mortgages secured by a property
    acquired in a Non-arm’s Length Transaction ■ Mortgages secured by a property where the property owner at th…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5602.3 — Automated collateral evaluation (ACE) (05/06/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '602-10 ■ Mortgages secured by Mortgaged Premises subject to resale restrictions (excluding
      those subject to age-based resale restrictions) ■ Mortgages secured by a property acquired in a Non-arm’s
      Length Transaction ■ Mortgages secured by a property where the property owner at the time of sale (i.e., the
      property seller) is a lender or a government entity ■ Mortgages with an estimate of value or purchase price
      greater than $1,000,000 ■ CHOICERenovation® Mortgages ■ Community Land Trust Mortgages ■ Construction to Permanent
      Mortgages ■ Cooperative Share Loans ■ Freddie Mac Enhanced Relief Refinance® Mortgages ■ GreenCHOICE Mortgages®
      ■ Renovation Mortgages ■ Seller-Owned Modified Mortgages that are Home Possible® Mortgages ■ Texas Equity
      Section 50(a)(6) and Texas Section 50(f)(2) Mortgages (e) Conditions that prevent the Seller from accepting
      an ACE offer Sellers may not accept the ACE offer if: ■ An appraisal is required by law or regulation ■ Rental
      income from an ADU on a subject 1-unit Primary Residence is used to qualify the Borrower ■ The Seller is aware,
      based on a review of the sales contract, property disclosure statement, property inspection, disclosure by
      the Borrower, etc., of an adverse physical property deficiency that warrants a PDR or an appraisal report
      being obtained. For purchase transaction Mortgages, the Seller must review the sales contract and, if provided,
      the property disclosure statement, for adverse physical property deficiencies. Examples of an adverse physical
      property deficiency that warrants a PDR or an appraisal report being obtained include, but are not limited
      to:'
    drafter_attestation: Verbatim from Freddie Guide §5602.3 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5602.3-4
  canonical_id: fhlmc-5602.3-4
  section: Freddie Mac Guide 5602.3
  description: '5602.3 Automated collateral evaluation (ACE): 602-11 ❑ A contaminated site or hazardous substance
    that affects the property or the Neighborhood in which the property is located ❑ The property has a deficiency
    that is consistent with a C5 or C6 condition rating (e.g., active roof leak(s), damaged or failing foundation).
    Refer…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5602.3 — Automated collateral evaluation (ACE) (05/06/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '602-11 ❑ A contaminated site or hazardous substance that affects the property or the Neighborhood
      in which the property is located ❑ The property has a deficiency that is consistent with a C5 or C6 condition
      rating (e.g., active roof leak(s), damaged or failing foundation). Refer to Section 5605.5(a) for further
      information related to property condition. Note: Refer to Section 5603.3(a) for further information on property
      disclosure statements. (f) Acceptable age of the ACE offer The ACE offer provided through the Loan Product
      Advisor Feedback Certificate message is valid for 120 days. If the offer is more than 120 days old on the
      Note Date, resubmission to Loan Product Advisor is required to determine ongoing ACE eligibility. (g) Data
      changes that impact ACE eligibility If the Seller changes loan data (e.g., address of the property, loan amount,
      purchase price, estimate of value, loan type, property type, occupancy of the property, etc.) in a subsequent
      submission, the original offer will become invalid, and Loan Product Advisor may provide a different ACE eligibility
      determination. (h) ACE requirements for Settlement Dates more than 120 days after the Note Date If the Settlement
      Date is more than 120 days after the Note Date, the Seller must warrant that the value of the subject property
      as of the Settlement Date is no less than the estimated value or sales price submitted to Loan Product Advisor.
      (i) ACE eligibility in disaster areas Sellers may accept an ACE offer for properties located in disaster areas
      if the Seller can represent and warrant that the value and marketability of the Mortgaged Premises has not
      been adversely impacted. See Section 4407.1 for property condition requirements. (j) Seller representation
      of property review or valuation A Seller that has accepted an ACE offer must not make any representation that
      Freddie Mac has performed a property review or obtained a valuation of the Mortgaged Premises.'
    drafter_attestation: Verbatim from Freddie Guide §5602.3 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
