New GSE Requirements for Appraisal Reporting Expected by Year-End
According to a statement released by Freddie Mac and Fannie Mae, 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 GSEs.
Business and technical 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. Implementations will occur in 2011.
The UAD includes all data points required for a complete appraisal report and standardizes key data points. The GSEs expect this standardization to support consistent appraisal reporting regardless of a property’s location or localized reporting conventions 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 GSEs are working to enhance the quality of key appraisal data and working with appraisal form vendors to incorporate the UAD requirements into appraiser software used for appraisal reports.
The GSEs will require that appraisals be completed with standardized responses in certain appraisal form fields. Requirements include 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 GSEs 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 GSEs 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 GSEs 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.
This article is from DSNews.com.