Certified Appraisals, Inc. Blog

UAD
October 25th, 2011 10:43 AM

Changes are once again being made in the appraisal industry. Most recently, in hopes of enhancing appraisal data quality and consistency, Fannie Mae and Freddie Mac have created the Uniform Appraisal Dataset (UAD). Under the direction of the Federal Housing Finance Agency, the UAD will attempt to promote the collection of electronic appraisal data through what's called the UCDP(Uniform Collateral Data Portal). The appraisal report forms must now be in compliance with the new UAD for conventional mortgage loans sold to Freddie Mac and Fannie Mae and had an effective date (date of inspection) of September 1, 2011. The UAD will be a standard form for the VA and FHA as of January 1, 2012.

The forms included are as follows:

  • Uniform Residential Appraisal Report (Freddie Mac Form 70)
  • Individual Condominium Unit Appraisal Report (Freddie Mac Form 465)
  • Exterior-Only Inspection Individual Condominium Unit Appraisal Report (Freddie Mac Form 466)
  • Exterior-Only Inspection Residential Appraiser Report (Freddie Mac Form 2055)

The UAD was put in place to standardize certain information to show consistency in appraisal reports, regardless of the location of the property. The UAD will also standardize certain information such as variations in the formatting of numbers, dates and measures; inconsistent terminology for the same information; and inconsistent uses of certain descriptions such as the quality of construction being described.

The following is a list of UAD standardizations:

  • 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 printed appraisal forms.
  • Standardized ratings and definitions for the "Condition" and "Quality" of the property and "Updated/Remodeled" status.

With these standardizations in place, there seems to be positive improvement on the side of the lenders: They will have a better understanding of appraisal definitions as well as more confidence in the quality of the appraisal, and there will be more consistency and efficiency in appraisal reviews. This will likely streamline the loan process, making less room for errors and questions regarding content of the appraisals.

This may be a positive move for the lenders, but what does it mean for appraisers? We need to stay tuned in the coming months and see how it all plays out.

 


Posted in:General
Posted by John Cordasco on October 25th, 2011 10:43 AMPost a Comment

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