Freddie Mac Single-Family Seller/Servicer Guide 5602.4 — ACE+ PDR

Refer to Bulletin 2025-7, which announced the policy requirements for Uniform Appraisal Dataset (UAD) 3.6. Sellers may begin delivering UAD 3.6-compliant appraisals prior to the mandatory effective November 2, 2026 version of this section. This section contains requirements related to: ■ ACE+ PDR overview ■ Process for qualifying for and accepting the ACE+ PDR offer ■ Eligible Mortgages ■ Ineligible Mortgages ■ Conditions that prevent the Seller from accepting the ACE+ PDR offer ■ Acceptable age of the ACE+ PDR offer ■ Data changes that impact ACE+ PDR eligibility ■ ACE+ PDR requirements for Settlement Dates more than 120 days after the Note Date ■ ACE+ PDR eligibility in disaster areas ■ Seller representation of property review or valuation ■ ACE+ PDR additional requirements ■ Beyond ACE application programming interface (bACE API) submission requirement

(a) ACE+ PDR overview For certain Loan Product Advisor® Mortgages, the Seller may receive the option to accept an ACE+ PDR offer and originate the Mortgage with a PDR. If the Seller accepts the ACE+ PDR offer, Freddie Mac will: ■ Accept as the value of the Mortgaged Premises: ❑ 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 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+ PDR 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. 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 include, but are not limited to: ■ 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.

(b) Process for qualifying for and accepting the ACE+ PDR offer For a Mortgage to qualify for an ACE+ PDR 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 or ACE+ PDR. (This represents the “offer.”) ■ 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+ PDR offer, the Seller may deliver the Mortgage with an appraisal report if the eligibility requirements for the selected appraisal type are met For Mortgages that receive an ACE+ PDR offer, to accept the ACE+ PDR offer, the Seller must deliver the Mortgage with the ULDD Data Points identified in the data delivery instructions in Section 6302.10(c).

(c) Eligible Mortgages To be eligible for an ACE+ PDR 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 Program limits* “No cash-out” refinance Primary Residence or second home 90% Cash-out refinance Primary Residence 70% Second home 60% *A TLTV ratio up to program limits for the associated Mortgage product

(d) Ineligible Mortgages The following Mortgages are ineligible for ACE+ PDR: ■ Mortgages for which an appraisal has been obtained in connection with the Mortgage ■ Mortgages secured by one of the following: ❑ A Manufactured Home, or ❑ A leasehold estate ■ 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 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 the ACE+ PDR offer Sellers may not accept the ACE+ PDR 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

(f) Acceptable age of the ACE+ PDR offer The ACE+ PDR 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+ PDR eligibility.

(g) Data changes that impact ACE+ PDR 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 eligibility determination.

(h) ACE+ PDR 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 submitted to Loan Product Advisor.

(i) ACE+ PDR eligibility in disaster areas If the Mortgaged Premises is located in a disaster area, the Seller may accept an ACE+ PDR offer 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+ PDR offer must not make any representation that Freddie Mac has performed a property review or obtained a valuation of the Mortgaged Premises.

(k) ACE+ PDR additional requirements Each Mortgage delivered with a PDR must retain the PDR in the Mortgage file and also comply with the additional requirements below: Additional PDR requirements Requirement type Section reference Qualification and requirements for the property data collector and Seller oversight Section 5603.6 Exhibits for PDRs Section 5604.2(h) Age of the PDR Section 5604.3(c) PDRs with required repairs and/or inspections Section 5605.8 ACE+ PDR upgrade to appraisal requirements Section 5604.1(d) (l) bACE API submission requirement The PDR must be submitted to the bACE API.

■ ACE+ PDR overview ■ Process for qualifying for and accepting the ACE+ PDR offer ■ Eligible Mortgages ■ Ineligible Mortgages ■ Conditions that prevent the Seller from accepting the ACE+ PDR offer ■ Acceptable age of the ACE+ PDR offer ■ Data changes that impact ACE+ PDR eligibility ■ ACE+ PDR requirements for Settlement Dates more than 120 days after the Note Date ■ ACE+ PDR eligibility in disaster areas ■ Seller representation of property review or valuation ■ ACE+ PDR additional requirements ■ Beyond ACE application programming interface (bACE API) submission requirement

(a) ACE+ PDR overview For certain Loan Product Advisor® Mortgages, the Seller may receive the option to accept an ACE+ PDR offer and originate the Mortgage with a PDR. If the Seller accepts the ACE+ PDR offer, Freddie Mac will: ■ Accept as the value of the Mortgaged Premises: ❑ 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 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+ PDR 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. 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 include, but are not limited to: ■ 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.

(b) Process for qualifying for and accepting the ACE+ PDR offer For a Mortgage to qualify for an ACE+ PDR 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 or ACE+ PDR. (This represents the “offer.”) ■ 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+ PDR offer, the Seller may deliver the Mortgage with an appraisal report if the eligibility requirements for the selected appraisal type are met For Mortgages that receive an ACE+ PDR offer, to accept the ACE+ PDR offer, the Seller must deliver the Mortgage with the ULDD Data Points identified in the data delivery instructions in Section 6302.10(c).

(c) Eligible Mortgages To be eligible for an ACE+ PDR 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 Program limits* “No cash-out” refinance Primary Residence or second home 90% Cash-out refinance Primary Residence 70% Second home 60% *A TLTV ratio up to program limits for the associated Mortgage product

(d) Ineligible Mortgages The following Mortgages are ineligible for ACE+ PDR: ■ Mortgages for which an appraisal has been obtained in connection with the Mortgage ■ Mortgages secured by one of the following: ❑ A Manufactured Home, or ❑ A leasehold estate ■ 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 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 the ACE+ PDR offer Sellers may not accept the ACE+ PDR 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

(f) Acceptable age of the ACE+ PDR offer The ACE+ PDR 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+ PDR eligibility.

(g) Data changes that impact ACE+ PDR 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 eligibility determination.

(h) ACE+ PDR 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 submitted to Loan Product Advisor.

(i) ACE+ PDR eligibility in disaster areas If the Mortgaged Premises is located in a disaster area, the Seller may accept an ACE+ PDR offer 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+ PDR offer must not make any representation that Freddie Mac has performed a property review or obtained a valuation of the Mortgaged Premises.

(k) ACE+ PDR additional requirements Each Mortgage delivered with a PDR must retain the PDR in the Mortgage file and also comply with the additional requirements below: Additional PDR requirements Requirement type Section reference Qualification and requirements for the property data collector and Seller oversight Section 5603.6 Exhibits for PDRs Section 5604.2(h) Age of the PDR Section 5604.3(c) PDRs with required repairs and/or inspections Section 5605.9 ACE+ PDR upgrade to appraisal requirements Section 5604.1(d) (l) bACE API submission requirement The PDR must be submitted to the bACE API.