Central Florida Real Estate Blog

As reported in the November 2010 issue of Default Servicing News (http://www.dsnews.com), according to a statement released in late September by Freddie Mac (http://www.freddiemac.com) and Fannie Mae (http://www.fanniemae.com), the companies are in the process of developing the Uniform Appraisal Dataset (UAD) to improve the quality and consistency of appraisal data on loans delivered to the GSE's.

Business and technology details of the UAD, implementation dates for the Uniform Collateral Data Portal (UCDP), and use of the UAD and UCDP are expected to be released later this year. Implementation will occur in 2011.

The UAD includes all data points required for a complete appraisal report and standardizes key data point. The GSEs expect this standardization to support consistent appraisal reporting regardless of a property's location or localized reporting coventions by addressing unclear data such as variations in formatting numbers, dates, and measures; inconsistent terminology for identical information (such as waterfront vs. oceanfront); and inconsistent descriptions.

The GSE's are working to enhance the quality of key appraisal data and teaming with appraisal form vendors to incorporate the UAD requirements into appraisal software used for appraisal reports.

The GSE's will require that appraisals be completed with standardized responses in certain appraisal form fields. Requirements encompass standardized formats for fields that include dates, values, etc.; allowable values from a list of choices provided for certain fields; standardized abbreviations to allow more information to fit on the printed appraisal forms; and standardized ratings and definitions for the property's "Condition", "Quality", and "Updating/Renovations."

The GSE's will publish full details of the UAD before the end of the year, including a business overview for lenders and appraisers and implementation specifications for appraisal software/form vendors, appraisal management companies, and high-volume lenders.

Job aids, training opportunities, and other resources will assist lenders in implementing the new requirements. The GSE's also plan to work with appraisal trade associations to distribute information, training, and job aids to help appraisers adopt the new data standards.

Lenders must submit appraisal data for delivery to either or both of the GSE's via the UCDP to facilitate delivery of electronic appraisal report data. lenders will be required to submit a PDF version of the appraisal report as well as electronic appraisal data to the GSEs through the UCDP prior to loan delivery for all residential appraisal forms. 

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You can also get more information at both Fannie Mae and Freddie Mac's websites.