Freddie Mac is lowering the amount of demand for appraisers by cutting them out of the picture for some mortgage loans.

The company’s Automated Collateral Evaluation became available on June 19, and allows borrowers to get a conventional refi without an appraisal.

Freddie Mac first announced its new process late last year, and some experts explained without the appraisal process, closing times could shrink down to just 10 days.

In his monthly 3-Points video, United Wholesale Mortgage CEO Mat Ishbia explains currently Fannie Mae offers products where appraisals aren’t necessary.

“This is a positive change for all of us in the industry,” Ishbia said. “You can either run it through Fannie Mae DU and get a PIW or Freddie Mac and get an ACE.”

Ishbia explained this option will be available for borrowers who meet certain qualifications such as those doing refinances, who have at least 80% loan-to-value ratio, primary residences and one-unit properties.

Ishbia talked about his other points, including the trending high FICO scores. He explained FICO scores are going up as key market changes take effect, and are closing faster.

In his final point, Ishbia talked about the change in area median income numbers, which will qualify more borrowers for the GSEs’ 3% down mortgage programs.

The video below shows Ishbia’s full 3-Points presentation: