With the modernization of the appraisal process, Freddie Mac Property Data Reports have become more common. We understand navigating these developments can be confusing, so we’re here to help.
This blog post will explain what property data reports are, why they’re helpful, and what information they contain.
Let’s dive in!
What Is A Property Data Report (PDR)?
A Freddie Mac property data report is an overview of a single-family home’s characteristics, layout, condition, and other relevant information. In short, it’s a fact sheet about a home.
The report data is collected o- site by trained data collectors and submitted using a proprietary Freddie Mac Dataset.
When combined with an ACE (Automated Collateral Evaluation), a PDR allows lenders to originate eligible loans without an appraisal in some cases, making them a faster and more convenient option.
Freddie Mac uses an automated system called Loan Product Advisor (LPA) to review your loan application. If your loan and property meet certain criteria, the system provides an “ACE+ PDR” offer.
Basically, ACE+PDR means Freddie Mac has enough market data to estimate the value without an appraiser. However, they still want a property data report to verify the home’s physical details and condition.
Remember that a PDR is not an appraisal, so no value is included in the PDR alone.
Property Data Report vs Appraisal: What’s the Difference?
| Feature | Property Data Report | Appraisal |
|---|---|---|
| Purpose | Collects facts and condition details about the property | Determines the market value of the property |
| Who Does It | Trained property data collector (not necessarily an appraiser) | Licensed appraiser |
| Includes Market Value? | No—only facts and photos | Yes—includes an opinion of value |
| Used For | Streamlining the mortgage process when a full appraisal isn’t required | Most home purchase and refinance loans |
| Depth of Analysis | Factual, no pricing analysis | In-depth analysis of comparable sales, market trends, and adjustments |
When Property Data Reports are Accepted
Here are a few scenarios where PDRs come in handy.
Certain Refinances
PDRs can be used for refinancing primary residences or second homes in some cases. The borrower must have a strong credit profile and a low loan-to-value (LTV) ratio.
Some Home Purchases
In some scenarios, property data reports can be used when purchasing certain one-unit properties, like single-family homes or condos. However, the property must be in an area where there’s strong comparable sales data.
Property Meets Risk Guidelines
The property needs to generally fall in line with similar properties in the area and be in solid structural standing.
Properties with significant damage or “unusual” property types (like log cabins or homes with a lot of acreage) may not qualify or require additional inspections.
Loan Must Qualify in the System
LPA must specifically offer an ACE+PDR result—lenders can’t just choose it themselves.
Why Property Data Reports Matter
Property data reports are a game-changer for lenders and property owners when applicable. Here are just a few of the benefits of PDRs:
Saves lenders and consumers time and money — no appraisal needed
Appraisals can be expensive and take weeks. PDRs allow you to skip the appraisal step, meaning the financing process often moves forward quicker and more efficiently.
Appraisers and evaluators can use PDR when providing an opinion of value
Property Data Reports contain a wide range of data about a specific property. By accessing and analyzing this information, appraisers and evaluators can gather valuable insights that contribute to their opinion of a property’s value.
Increases transparency for all involved
As the saying goes, “Knowledge is power.” A PDR plays a pivotal role in enhancing knowledge and transparency by offering a comprehensive overview of a property’s characteristics and condition. This transparency benefits all parties, from lenders to property owners, and helps them make more strategic financial decisions.
What’s Included In A Property Data Report?
OK, now you may be wondering what’s included as part of a property data report. These detailed reports include an overview of the interior and exterior of the home, as well as insights into any improvements and repairs.
Photographs
Photographs are a key part of property data reports and help provide a good property overview for lenders and others who may not see it in person. All PDRs include photographs of the subject property containing the following:
- A front view of the property
- A rear view of the property
- Side views of the property
- A street scene
- All interior rooms
- Interior and exterior of any significant or permanently affixed outbuildings (garages, sheds, etc.)
- Any physical deterioration, improvements, or amenities (swimming pools, decks, patios, etc.)
Floor Plan
Property data reports also include a detailed drawing and insights about the property’s floor plan.
The drawing includes overall property dimensions as well as the dimensions and placements for all exterior and interior walls. It also outlines obstacles such as doors, windows, appliances etc.
Client & Property Information
The report has to include basic information about the subject property and the client. Key details include:
- The name of the client
- The address of the property
- HOA fees, if applicable
- The number of years the client has owned the property
Interior Property Details
The bulk of the PDR focuses on the interior of the property. The report goes room by room and notes materials used and the overall condition of various interior elements, including:
- Flooring
- Wall & ceiling
- Appliances
- Heating and cooling systems
- Extras (fireplace, porch, etc.)
Exterior Property Details
Beyond the interior, inspectors will also examine the outside of the subject property and any significant or permanently affixed outbuildings. Key areas of focus include:
- Foundation
- Windows
- Roof
- Infestation
- Street (slope, material, etc.)
- Gutters/downspouts
- Garage
Again, the inspection looks at the materials used, age, quality, and overall condition of these exterior elements.
Improvements & Repairs
Because repairs and improvements can significantly alter a property and its value, they’re noted on the report. The report focuses on:
- Code compliance. Are all upgrades up to code and industry standards?
- Ongoing construction. Is there a current project in the works, and what does it entail?
- Energy information. Are there any renewable or energy efficiency upgrades, such as solar panels?
Data Collector Information
Because the reports need to be completed by a trained professional, details about their qualifications need to be documented. Required information includes:
- The inspector’s name
- Title & business
- The inspector’s signature
These details are necessary for the PDR to be accepted. You can refer to the Freddie Mac website for more details on property data collector requirements.
Learn More About Property Data Reports
Of course, we’re only scratching the surface here. There’s a lot more to these reports and using them properly than we can cover in one post.
If you would like to learn more about Freddie Mac’s Property Data Reports and how utilizing these reports can benefit your company, check out the Freddie Mac PDR FAQ page or contact our experts.