Like its secondary cousin, the Federal National Mortgage Association will begin allowing some home-purchase financing loans without appraisals.

On Friday, rival Freddie Mac revealed that its new automated collateral evaluation tool will enable some loans to be made made without a full appraisal.

The move by Freddie followed a decision back in June by the McLean, Virginia-based company to allow ACE to replace appraisals on some refinances.

Source: Mortgage Daily