Oct 5, 2011 FIC Alliance â Week 10 UAD
Oct 5, 2011
FIC Alliance – Week 10
UAD – Effective September 1, 2011 September 1, 2011, was the effective date for the use of the Uniform Appraisal Dataset (UAD) – compliant forms. The Uniform Collateral Data Portal (UCDP) supports appraisal data in the XML file format for any appraisal software forms vendor that has developed its software output in compliance with the UAD Technical Specification and if the XML file is in one of the UCDP- supported formats. On or after December 1, 2011, the UCDP will accept only UAD-compliant forms for the following four appraisal forms: Uniform Residential Appraisal Report (1004/70) Individual Condominium Unit Appraisal Report (1073/465) Ext-Only Inspection Individual Condominium Unit Appraisal Report (1075/466) Ext-Only Inspection Residential Appraisal Report (2055/2055) Any appraisal submissions on these forms not completed using a UAD-compliant form, will receive a “Not Successful” submission status from Fannie/Freddie in the UCDP if the appraisal effective date is on or after December 1st, 2011. The Uniform Appraisal Dataset (UAD) standardizes certain data points to support consistent appraisal reporting, regardless of geographic location of the property or any localized reporting conventions, by addressing vague or disparate data currently included on some appraisal reports. For example, the UAD establishes standardized formats for fields that include dates, values, etc.; lists of allowable values for certain fields; standardized abbreviations to allow more information to fit on the printed appraisal forms; and standardized ratings and definitions for the "Condition" and "Quality" of the property and "Updated/Remodeled" status. To help incorporate requirements into your business processes, Fannie Mae and Freddie Mac encourage all single family lenders to take advantage of the UAD Resources on www.efanniemae.com
To improve the quality and consistency of appraisal data on loans delivered to the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, at the direction of the Federal Housing Finance Agency (FHFA), have developed the Uniform Appraisal Dataset (UAD), which defines all fields required for an appraisal submission for specific appraisal forms and standardizes definitions and responses for a key subset of fields. UAD Overview Appraisal reports must be completed in compliance with the UAD for conventional mortgage loans sold to either GSE for appraisals with an effective date (date of inspection) on or after September 1, 2011. Additional information, resources, and training to aid appraisers in adopting the UAD will be available in the first quarter of 2011. Appraisers should contact their appraisal form vendors for specific timelines and availability of needed updates. In order to ease the adoption of the new standards, the current appraisal report forms are not being changed. The GSE’s are leveraging and re-purposing existing fields to include a standardized response or in some cases, more data points. Appraisal forms providers are updating their software for appraisers to accommodate the new standards. With the new standards, lenders will be providing more appraisal data to the GSE’s than is provided today, but on the existing appraisal report forms. New information will need to be provided on the appraisal form that was never explicitly requested before the UAD. For example, the following are new data points: Days on Market for Subject Property and each comparable property Specifically defined Condition and Quality Ratings Status of improvements to kitchen and bathrooms for the specific property Sale type for the subject property and each comparable property
UAD Business Resources for Lender Underwriting & Property Valuation Staff The UAD Field-Specific Standardization Requirements are designed to assist those who are responsible for creating and reviewing appraisal reports during the property inspection, underwriting, property valuation, or quality control processes to assess the impact of the UAD requirements on those processes. The attached document provides field-specific standardization requirements for completing the GSEs’ residential appraisal report forms listed in the table below (the appraisal forms). It lists the requirements for the data that must be included in specific FIC Regulatory Education Alliance / Copyright ©FIC Conferences, Inc. – Oct 5, 2011 – Week 10
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fields and how the data should be formatted. These requirements are in addition to the GSEs’ appraisal-related policies and guidelines, which are subject to change and are identified in Fannie Mae’s Selling Guide and Freddie Mac’s Single-Family Seller/Servicer Guide. It is important to Fannie Mae and Freddie Mac that appraisals are conducted and communicated accurately and effectively. The UAD was developed with that in mind and none of the UAD requirements inhibit or limit appraisers’ responsibility to comply with the Uniform Standards of Professional Appraisal Practice (USPAP). As with all appraisal report forms, there is no limitation on appraisers’ ability to present additional information in the appraisal report or an addendum to the appraisal report form. Appraisal reports must include any and all information necessary to accurately and completely describe the subject property. Conforming to the UAD does not replace appraisers’ development and reporting responsibilities as required by the Uniform Standards of Professional Appraisal Practice (USPAP). Exhibit 3: Requirements – Abbreviations Used in Data Standardization Text UAD Business Resources for Lender Underwriting and Property Valuation Staff https://www.efanniemae.com/sf/lqi/umdp/pdf/uadspec.pdf The UAD Technical Specification and supporting documents will help map the current appraisal forms to the new appraisal dataset. This information will be most relevant to appraisal software/forms vendors, lenders who use appraisal data in their business processes, and other organizations such as appraisal management companies (AMCs) that will work with electronic appraisal form data.
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Fannie Mae & Freddie Mac UAD Specification (.pdf) Page UAD Specification Appendix A, GSE Appraisal Forms Mapping (.pdf) UAD Specification Appendix B, GSE Appraisal Forms Mapping (.xls) UAD Specification Appendix C, Appraisal Forms with Numbered Fields v1.1 (.zip) UAD Specification Appendix D, Field-Specific Standardization Requirements (.pdf) UAD Specification Appendix E, PDF Rendering and Parsing Instructions (.pdf) UAD Specification Appendix F, Property Information Valuation Response v2.6 GSE Extension Schema (.zip) UAD Technical Specifications Pending Changes Log (.pdf)
Kimberly Lundquist FIC Conferences, Inc. 1150 N Loop 1604 W Suite 108-603 San Antonio, TX 78248
Tel 210.493.1761 Fax 210.493.9659 [email protected] www.ficconferences.com
FIC Regulatory Education Alliance / Copyright ©FIC Conferences, Inc. – Oct 5, 2011 – Week 10
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FIC Regulatory Education Alliance / Copyright ©FIC Conferences, Inc. – Oct 5, 2011 – Week 10
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FIC Alliance – Week 10
UAD – Effective September 1, 2011 September 1, 2011, was the effective date for the use of the Uniform Appraisal Dataset (UAD) – compliant forms. The Uniform Collateral Data Portal (UCDP) supports appraisal data in the XML file format for any appraisal software forms vendor that has developed its software output in compliance with the UAD Technical Specification and if the XML file is in one of the UCDP- supported formats. On or after December 1, 2011, the UCDP will accept only UAD-compliant forms for the following four appraisal forms: Uniform Residential Appraisal Report (1004/70) Individual Condominium Unit Appraisal Report (1073/465) Ext-Only Inspection Individual Condominium Unit Appraisal Report (1075/466) Ext-Only Inspection Residential Appraisal Report (2055/2055) Any appraisal submissions on these forms not completed using a UAD-compliant form, will receive a “Not Successful” submission status from Fannie/Freddie in the UCDP if the appraisal effective date is on or after December 1st, 2011. The Uniform Appraisal Dataset (UAD) standardizes certain data points to support consistent appraisal reporting, regardless of geographic location of the property or any localized reporting conventions, by addressing vague or disparate data currently included on some appraisal reports. For example, the UAD establishes standardized formats for fields that include dates, values, etc.; lists of allowable values for certain fields; standardized abbreviations to allow more information to fit on the printed appraisal forms; and standardized ratings and definitions for the "Condition" and "Quality" of the property and "Updated/Remodeled" status. To help incorporate requirements into your business processes, Fannie Mae and Freddie Mac encourage all single family lenders to take advantage of the UAD Resources on www.efanniemae.com
To improve the quality and consistency of appraisal data on loans delivered to the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, at the direction of the Federal Housing Finance Agency (FHFA), have developed the Uniform Appraisal Dataset (UAD), which defines all fields required for an appraisal submission for specific appraisal forms and standardizes definitions and responses for a key subset of fields. UAD Overview Appraisal reports must be completed in compliance with the UAD for conventional mortgage loans sold to either GSE for appraisals with an effective date (date of inspection) on or after September 1, 2011. Additional information, resources, and training to aid appraisers in adopting the UAD will be available in the first quarter of 2011. Appraisers should contact their appraisal form vendors for specific timelines and availability of needed updates. In order to ease the adoption of the new standards, the current appraisal report forms are not being changed. The GSE’s are leveraging and re-purposing existing fields to include a standardized response or in some cases, more data points. Appraisal forms providers are updating their software for appraisers to accommodate the new standards. With the new standards, lenders will be providing more appraisal data to the GSE’s than is provided today, but on the existing appraisal report forms. New information will need to be provided on the appraisal form that was never explicitly requested before the UAD. For example, the following are new data points: Days on Market for Subject Property and each comparable property Specifically defined Condition and Quality Ratings Status of improvements to kitchen and bathrooms for the specific property Sale type for the subject property and each comparable property
UAD Business Resources for Lender Underwriting & Property Valuation Staff The UAD Field-Specific Standardization Requirements are designed to assist those who are responsible for creating and reviewing appraisal reports during the property inspection, underwriting, property valuation, or quality control processes to assess the impact of the UAD requirements on those processes. The attached document provides field-specific standardization requirements for completing the GSEs’ residential appraisal report forms listed in the table below (the appraisal forms). It lists the requirements for the data that must be included in specific FIC Regulatory Education Alliance / Copyright ©FIC Conferences, Inc. – Oct 5, 2011 – Week 10
Page 2
fields and how the data should be formatted. These requirements are in addition to the GSEs’ appraisal-related policies and guidelines, which are subject to change and are identified in Fannie Mae’s Selling Guide and Freddie Mac’s Single-Family Seller/Servicer Guide. It is important to Fannie Mae and Freddie Mac that appraisals are conducted and communicated accurately and effectively. The UAD was developed with that in mind and none of the UAD requirements inhibit or limit appraisers’ responsibility to comply with the Uniform Standards of Professional Appraisal Practice (USPAP). As with all appraisal report forms, there is no limitation on appraisers’ ability to present additional information in the appraisal report or an addendum to the appraisal report form. Appraisal reports must include any and all information necessary to accurately and completely describe the subject property. Conforming to the UAD does not replace appraisers’ development and reporting responsibilities as required by the Uniform Standards of Professional Appraisal Practice (USPAP). Exhibit 3: Requirements – Abbreviations Used in Data Standardization Text UAD Business Resources for Lender Underwriting and Property Valuation Staff https://www.efanniemae.com/sf/lqi/umdp/pdf/uadspec.pdf The UAD Technical Specification and supporting documents will help map the current appraisal forms to the new appraisal dataset. This information will be most relevant to appraisal software/forms vendors, lenders who use appraisal data in their business processes, and other organizations such as appraisal management companies (AMCs) that will work with electronic appraisal form data.
• • • • • • • • •
Fannie Mae & Freddie Mac UAD Specification (.pdf) Page UAD Specification Appendix A, GSE Appraisal Forms Mapping (.pdf) UAD Specification Appendix B, GSE Appraisal Forms Mapping (.xls) UAD Specification Appendix C, Appraisal Forms with Numbered Fields v1.1 (.zip) UAD Specification Appendix D, Field-Specific Standardization Requirements (.pdf) UAD Specification Appendix E, PDF Rendering and Parsing Instructions (.pdf) UAD Specification Appendix F, Property Information Valuation Response v2.6 GSE Extension Schema (.zip) UAD Technical Specifications Pending Changes Log (.pdf)
Kimberly Lundquist FIC Conferences, Inc. 1150 N Loop 1604 W Suite 108-603 San Antonio, TX 78248
Tel 210.493.1761 Fax 210.493.9659 [email protected] www.ficconferences.com
FIC Regulatory Education Alliance / Copyright ©FIC Conferences, Inc. – Oct 5, 2011 – Week 10
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FIC Regulatory Education Alliance / Copyright ©FIC Conferences, Inc. – Oct 5, 2011 – Week 10
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