Fannie Mae and Freddie Mac have developed new Uniform Appraisal Dataset requirements (UAD) for certain appraisal report forms.  UAD compliant appraisal reports will eventually be required to be submitted through an Uniform Collateral Data Portal (UCDP) system developed by the GSEs, for all mortgage loans to be sold to the GSEs and for which an appraisal is required.

IRR-Residential has been approved as a Lender Agent for the Uniform Collateral Data Portal (UCDP) system .  As such, IRR-Residential is able to upload appraisal reports to the UCDP on behalf of our lender clients.

Appraisal Reports submitted to the UCDP must consist of either a compliant Extensible Markup Language data stream (XML file), including an embedded Portable Document Format file (PDF) of the appraisal, or a first-generation PDF file of the appraisal report.  The PDF file must include all exhibits, addenda, and photographs. Lenders who fail to submit the appraisal in a proper format will be charged a fee for the XML conversation tool on a per transaction fee basis.
 
FHA is also looking at the new standards for a UAD compliant report format.  It appears FHA has every intention of also adopting at least two of the UAD compliant appraisal reporting forms, the single family URAR and the Condo form.    Although HUD has yet to release a Mortgagee letter outlining their next steps, it is important to consider FHA probable direction when designing the workflow within a lender’s office.

Important UAD/UCDP Dates:

• June, 2011 – availability of UCDP portal and commencement of user training opportunities through Fannie Mae’s web site.
• September 1, 2011 – Effective date for UAD compliant format requirements for appraisals.
• December 1, 2011 – Effective date for Loan Applications to be submitted to UCDP
• March 19, 2012 – Effective date for UAD compliant appraisal packages to be submitted through UCDP prior to loan submission to a GSE.

Impacted Appraisal Reports:
The following appraisal forms are required to be submitted in UAD compliant format according to Fannie Mae Lender Letter LL-2010-15 dated December 16, 2010 for Single Family Lenders:

• Uniform Residential Appraisal Report (Fannie Mae Form 1004)
• Manufactured Home Appraisal Report (Fannie Mae Form 1004C)
• Small Residential Income Property Appraisal Report (Fannie Mae Form 1025)
• Individual Condominium Unit Appraisal Report (Fannie Mae Form 1073)
• Exterior-Only Inspection Individual Condominium Unit Appraisal Report (Fannie Mae Form 1075)
• Exterior-Only Inspection Residential Appraisal Report (Fannie Mae Form 2055)
• Individual Cooperative Interest Appraisal Report (Fannie Mae Form 2090)
• Exterior-Only Inspection Individual Cooperative Interest Appraisal Report (Fannie Mae Form 2095)

Abbreviation Conversions:
A part of the UAD data standardization includes abbreviations for use in certain fields.  For instance a “c” in the Date of Sale/Time field designates the date to be the “Contract Date.” An “s” would indicate it is the Settlement Date.  The Abbreviations help to capture data in a way that moves toward better consistency and ensure more creditable measurable information.  These abbreviations will however require a “learning curve” on the part of both appraisers and Lenders.   Modifications in appraisal preparation software will help appraisers.  Lenders will need to learn the abbreviations. 

The following link provides access to an UAD Abbreviation Table.

Lender Activities:
Each Lender must register with Fannie Mae and Freddie Mac to obtain a valid ID under UCDP.  At registration, the Lender may identify a Vendor (AMC Lender Agent).   IRR-Residential is registered as an UCDP appraisal vendor. 

Lender Steps to Register with the GSE’s:

1. Designate a Lender Administrator (LA) within its organization
2. The LA registers with both GSE’s and must be the same LA for both Fannie Mae and Freddie Mac.
3. The LA has authority within UCDP to set up and manage their company’s business including granting privileges to other general users within their lending organization.   General users are not required to complete separate registration forms for either GSE, only the LA obtains registration.
4. The LA has the ability to log-in to the UCDP portal as the first user to set up the organization profile and add other users from the organization.
5. The LA receives a registration # which identifies the Lender to the GSE.

For more detail information, visit the Fannie Mae or Freddie Mac web site.
 
The IRR-Residential has recently provided client and appraiser webinars on the UCDP and UAD programs, click here to access the presentation.

Contact IRR-Residential if you have any questions regarding these new UAD/UCDP requirements.
 
The IRR-Residential Team
Complianceofficer@irr-residential.com
913-261-1840