by Anna DeSimone*, June 10, 2011
Effective for residential property appraisals with an effective date, or date of inspection, on or after September 1, 2011, appraisal reports must be completed in compliance with the Uniform Appraisal Dataset (UAD). The rule applies to all conventional mortgage loans sold to Fannie Mae or Freddie Mac.
The UAD is a component of the Uniform Mortgage Data Program, which was jointly established by Fannie Mae and Freddie Mac under the direction of their regulator, the Federal Housing Finance Agency to provide common requirements for appraisal and loan delivery data.
The UAD defines all fields required for an appraisal submission for specific appraisal forms and standardizes definitions and responses for a key subset of fields. It was formulated to improve the quality and consistency of appraisal data on loans delivered to the Government Sponsored Enterprises.
The UAD does not change the look of the existing appraisal forms, but some fields on the forms are being extended to include additional information. Appraisal software forms providers and licensed appraisers are expected to have their systems and procedures updated to incorporate the UAD prior to the implementation date.
Fannie Mae and Freddie Mac Uniform Appraisal Dataset Requirements
Fannie Mae and Freddie Mac have created the UAD Specification document to provide business and technical requirements for implementation of the UAD. The UAD includes all data elements required to complete the following appraisal report forms, collectively referred to as the “four UAD appraisal report forms”:
The UAD also standardizes the input values for certain elements (e.g. specific date and dollar amount formats) and standardizes the definitions for select key appraisal data elements (e.g. property condition and quality of construction) on the four UAD appraisal report forms.
The UAD is required for appraisals with effective dates on or after September 1, 2011 that are completed on the four UAD appraisal report forms. Only conventional mortgages sold to Fannie Mae that are accompanied by one of the four UAD appraisal report forms must meet this requirement.
Other appraisal report forms may be completed using the standards contained in the UAD Specification to the extent those standards are applicable to that particular form. In addition, although not required, the UAD may be used for appraisal reports with effective dates prior to September 1, 2011.
Uniform Appraisal Dataset and Uniform Collateral Data Portal
Effective for all conventional mortgage loans requiring an appraisal report, and with application dates on or after December 1, 2011 and delivery dates on or after March 19, 2012, the following appraisal report forms, must be submitted to UCDP before the delivery date of the mortgage loan to Fannie Mae, including all exhibits, addenda, and photographs. This consists of the four UAD appraisal report forms and four additional forms:
Freddie Mac Bulletin 2010-31: UAD and UCDP Requirements (12/16/10)
Freddie Mac issued Bulletin 2010-31: UAD and UCDP Requirements on 12/16/10. This bulletin reiterated the joint policy with Fannie Mae regarding the Uniform Appraisal Dataset and Uniform Collateral Data Portal Requirements. Key points to the bulletin include:
Uniform Appraisal Dataset
The UAD is required for appraisals that have effective dates on or after September 1, 2011 and are completed on the appraisal report forms listed below. Only conventional Mortgages sold to Freddie Mac must meet this requirement. The UAD includes all data points required to complete the following four appraisal report forms:
The GSEs have created the Uniform Appraisal Dataset Specification (“UAD Specification”) to provide business and technical requirements for the implementation of the UAD.
Other appraisal report forms may be completed using the standards contained in the UAD Specification to the extent those standards are applicable to that particular form. In addition, although not required, the UAD may be used for appraisals with effective dates prior to September 1, 2011. The UAD Specification may be amended from time to time. The current version of the UAD Specification can be found on www.freddiemac.com.
Uniform Collateral Data Portal
For conventional Mortgages that require appraisal reports and have residential loan applications dated on or after December 1, 2011 and Delivery Dates on or after March 19, 2012, the appraisal report forms listed below, including all exhibits, addenda and photographs, must be submitted to the UCDP before the Delivery Date of the Mortgage. This includes the four appraisal report forms addressed by the UAD and two additional forms:
*Anna DeSimone is President of Bankers Advisory, Inc., Belmont, Massachusetts. She authors Policy Manual Templates for AllRegs and her company authors and updates AllRegs’ State Rules Matrices, Permissible Fee Matrix and Compliance Checklists for 50 states.
Disclaimer: The information presented in this article represents the opinion of the author and not that of AllRegs. This article is not meant to be nor should it be construed as advice of legal counsel. The applicability of the information contained herein will vary based on the nature of each lending institution's business, under what law it was created, and its loan products and procedures. Readers are strongly urged to consult with their legal counsel and/or contact local counsel as appropriate in the various states and jurisdictions to determine the applicability of the materials contained herein to the specific facts and circumstances of each organization's programs and products and to identify other law applicable to its business operations. The information contained herein was not reviewed or approved by counsel in the respective jurisdictions.