The Federal Home Loan Mortgage Corporation (Freddie Mac) has announced that it will no longer require traditional appraisals on some conformable home loans. Instead, Freddie will opt for an alternative valuation method derived from data collected from its database of millions of home purchase and sales transactions. This valuation method will be free of charge to buyers and sellers in some future transactions. This new methodology will save some homebuyers $350-$700 in closing costs. Using this method may also relieve lenders of the burden of having to prove the accuracy of the appraisals. If an audit of an appraisal reveals significant errors made in deriving a value for the subject property, Freddie Mac can issue a "buyback demand letter" requiring the company originating the loan to buy back the note.