May 11, 2023

The Convergence of Fannie Mae and Freddie Mac's Property Data Collection Standards and The Future of Property Valuation - Part 1

The real estate industry is on the edge of a revolution, as the two big players converge on a property data spec.

The Convergence of Fannie Mae and Freddie Mac's Property Data Collection Standards and The Future of Property Valuation - Part 1

The real estate industry, including lenders, banks, Appraisal Management Companies (AMCs), and those in need of Fannie Mae or Freddie Mac backed loans, is on the brink of a revolution. One area, in particular, is ripe for transformation: property valuation. At the heart of this change is the convergence of Fannie Mae's Property Data Collection (PDC) Valuation Modernization standard and Freddie Mac's Automated Collateral Evaluation (ACE) and Property Data Report (PDR) data collection standard.

Fannie Mae's PDC and Freddie Mac's ACE+PDR: A Data Collection Standard on the Horizon

As most professionals in the real estate industry are aware, Fannie Mae and Freddie Mac are key players in the U.S. mortgage market. They buy mortgages from lenders, package them into securities, and guarantee them to investors. To streamline and improve the property valuation process, they have each developed their unique property data collection standards.

Fannie Mae's PDC Valuation Modernization standard is a part of their larger initiative to modernize appraisals. This standard emphasizes accuracy, consistency, and data integrity in property valuations. It requires comprehensive property data collection, including photos and floor plans, which must be delivered in a specific digital format.

Freddie Mac's ACE+PDR, on the other hand, focuses on leveraging data analytics to expedite the appraisal process. It uses property data and algorithms to determine if an appraisal can be waived, which saves time and money for lenders and borrowers alike.

While they may have different approaches, these standards are gradually converging towards a unified data collection standard. They both understand the importance of reliable property data, and they're leveraging technology to collect, analyze, and utilize this data more effectively.

Value Acceptance LLC: Leading the Charge in PropTech

As the real estate industry evolves, proptech companies like Value Acceptance LLC are leading the charge. We are at the forefront of developing the intellectual property for floor plan generation, geotagged photos, and creating an immutable data set that safeguards privacy and prevents data manipulation.

Our technology is specifically designed for compatibility with Fannie Mae's and Freddie Mac's evolving standards. By using Apple iPad Pros and adhering to Apple's stringent app standards, we can guarantee our data as a center of truth. This data can be utilized in any backend AI appraisal or inspection engine, bringing a new level of efficiency and accuracy to the property valuation process.

Wesley McCombe

Wesley McCombe


Wes is passionate about helping lenders, property industry professionals and valuers leverage the changes to the valuation industry.