Category: UCDP


UAD Update

National Association of Appraisers

  1. Below is a complete copy of an email from Bob Murphy at Fannie Mae. It is provided as an urgent matter. The mistake probably was based on the FHA announcement.
  2. Fannie/Freddie have recently updated their UAD instructions, primarily to add in most sections that the appraiser may/should add comments/clarifications when necessary. The report doesn’t change except for the standardization. The UAD does not substitute for text comments in either the comments section or addenda.

The email states the following:

We are reaching out to you to help us reinforce the GSE’s September 1, effective date for Uniform Appraisal Dataset (UAD) forms.

Yesterday, several news outlets published articles incorrectly reporting that the UAD effective date was pushed back to January 2012.  The GSEs (Freddie Mac and Fannie Mae) have NOT changed their UAD effective date of September 1, 2011. The January 1, 2012, effective date is the adoption date for FHA, which recently announced it will adopt the UAD and two of the UAD compliant appraisal reporting forms.   More information on FHA’s adoption of the UAD is available in their Mortgagee Letter 2011-30.
If you should receive any inquiries regarding the press coverage, we would appreciate your help in sharing the following key message:

  • The GSEs have not changed their UAD effective date.  September 1, 2011 remains the effective date for appraisal reports to be completed in compliance with the UAD for conventional mortgages sold to the GSEs.  
  • The January 2012 date is the effective date for the use of the UAD for FHA.  More information on FHA’s adoption of the UAD is available in their Mortgagee Letter 2011-30.

Additionally, we are posting reminders on our Websites about the September 1 effective date – and wanted to ask you to help us and do the same (if you have not already).  A suggestion is below.
"Reminder:  September Uniform Appraisal Dataset Effective Date is Approaching -  Fannie Mae and Freddie Mac are requiring UAD forms for all appraisal report forms with effective dates of September 1, 2011 or later."

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Reverse Mortgage Daily

The deadline for implementing new Uniform Appraisal Dataset (UAD) requirements has been pushed back to January 1, according to Mortgagee Letter 2011-30, released on Monday. As specified in the mortgagee letter, the new UAD requirements will go into effect for all case numbers assigned on or after January 1, 2012 and for all appraisals performed on HUD real estate owned (REO) and Pre-Foreclosure Sale (PFS) properties with an effective date on or after January 1, 2012.

The requirements under the Federal Housing Administration aim to streamline the appraisal process and make appraisals more uniform. Appraisal management companies are working to teach and train appraisers to use the UAD, which essentially revolutionizes the way appraisals are documented by setting standards throughout the appraisal process.

The UAD is one component of a larger effort toward improving the appraisal process; additionally, a Uniform Uniform Collateral Data Portal (UCDP) will enable lenders to submit appraisal report forms electronically. The mortgagee letter specifies that mortgagees may use either format in advance of the January 1 implementation date.

Previously, the implementation date for the UAD was September 1. AMCs have told RMD that they are shifting their processes in advance of the deadline.

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UAD/UCDP Seminar

Coester Appraisal Group’s educational slideshow regarding the upcoming requirements for the Uniform Collateral Data Portal/Uniform Appraisal Dataset.

Appraisal Scoop

Reading appraisal reports after September 1, 2011 is going to look a bit different due to the Uniform Appraisal Dataset (UAD). Basically, both Fannie Mae & Freddie Mac have been working together to make changes to the way particular appraisal forms are filled out by appraisers throughout the country.

The UAD only applies to the following Fannie Mae forms: 1004, 2055, 1073 and 1075. These forms are the full appraisal (1004), exterior-only appraisal (2055), full condo appraisal (1073) and exterior condo appraisal (1075). The multi-unit forms are not affected by the UAD and keep in mind that FHA has not adopted the UAD as of yet either.

In my opinion most of the changes are fairly minor, but I’ve listed some of the bigger changes below that you’ll definitely want to know about:

1) Bathrooms: Instead of saying 2.5 bathrooms, which means 2 1/2 bathrooms, the appraiser will now say 2.1 bathrooms. The figure to the left of the decimal signifies full bathrooms and the number to the right signifies the amount of half bathrooms. For example, 2.2 bathrooms would equal two full baths and two half baths, and 4.5 bathrooms would indicate four full bathrooms and 5 half bathrooms.

2) Condition Rating: Instead of using “average”, “fair” or “good”, appraisers will now use a specific rating system of C1-C6. The definitions for condition are now standardized, so the appraiser will basically choose whatever definition fits best for a given house, with C1 being best and C6 being worst.

3) Quality Rating: Instead of appraisers saying things like “good quality”, “average” or “good upgrades” for Quality of Construction, they’ll now use a standardized definition and rate the property with a Q1-Q6.

4) Architectural Design: Appraisers can no longer simply say “Single Story” or “2-Story” for design, but rather must be specific and say things like Colonial, Highwater Bungalow, Contemporary, Victorian, Farmhouse, Ranch, Cottage, etc…

5) View: Appraisers will provide at least one specific view for the subject property and then rate the view as either “N” (neutral), “B” (beneficial) or “A” (adverse).

6) Miscellaneous Changes: There are just over 60 fields affected in the appraisal forms due to the UAD (out of 200-ish fields). Mostly everything is minor and has to do with the way data is formatted, but some of the items mentioned above are definitely big changes for the appraisal industry. See Fannie Mae’s UAD information or UAD Help (an appraisal school).

What do you think of the changes? Good? Bad? Do you have any questions?

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Appraisal Scoop

Good Morning Appraisers,

Here is a little something T.J. McCarthy put together to help his appraisal pals better adjust to the upcoming UAD format change that is about to hit the residential industry.

"This is a sample URAR with all the UAD fields populated. You will see many blank fields in this sample because not all fields are UAD specific. I have inserted instructions to further explain the rational behind some of the UAD required fields. The instructions have all been highlighted in yellow and placed in comment sections throughout the report." Click on the link to access the PDF: UAD URAR Helper

UAD Sample Graphic

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Housingwire

The government-sponsored enterprises opened registration and a support line for lenders submitting appraisals electronically through the upcoming Uniform Collateral Data Portal.

The new system will be available June 27. Lenders have until March 19 before they are required to send appraisal reports through the portal for all loans originated after Dec. 1. According to guidance Fannie Mae put out to lenders Tuesday, a support center is now in place to help with compliance.

The GSEs encourage lenders to determine a plan for accessing UCDP and submitting the files. The companies also ask lenders prepare appraisers for sending the reports in a MISMO 2.6 XML format.

Veros Real Estate Solutions will provide the technology for the portal, and there are many firms integrating to the platform, including a la mode. On Tuesday, a la mode announced its new DataCourier service will be offered for free as part of the Mercury Network vendor management platform.

The a la mode platform enables lenders and AMCs to receive files from any appraiser using the firm’s software and then submit the file through the UCDP. For appraisals sent through another software package, the lender or AMC can upload it into DataCourier and send it through the UCDP.

The company said DataCourier includes checks to ensure the compliance and reports to let lenders and AMCs track the status of the appraisal.

The joint support center from the GSEs will answer lender and AMC questions related to the registration and the submission procedures.

"To help you prepare to use the UCDP, today we are beginning the registration process and introducing new resources, including details on the new joint UCDP Support Center," Fannie said in its guidance.

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