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Uniform Appraisal Dataset (UAD)

Fannie Mae and Freddie Mac are developing the UAD to improve the quality and consistency of appraisal data on loans delivered to the GSEs. The UAD defines all data points required for an appraisal report and standardizes key data points.

GSE/UAD Requirements (Complete GSE/UAD Guidelines)

GSE/UAD Frequently Asked Questions

Introduction

Under the direction of the Federal Housing Finance Agency (FHFA), Fannie Mae and Freddie Mac (the GSEs) have developed the Uniform Mortgage Data Program (UMDP) to enhance the accuracy and quality of loan data delivered to each GSE. The Uniform Appraisal Dataset (UAD) is a key component of the UMDP which defines all fields required for an appraisal submission for specific appraisal forms and standardizes definitions and responses for a key subset of fields.

· September 1, 2011 (appraisal effective date): Appraisals must comply with the UAD data standardization requirements

· December 1, 2011 (loan application date): Lenders must deliver full UAD-compliant electronic appraisal report data (if appraisal required) and expanded loan delivery data

· March 19, 2012 (loan delivery date): Lenders must deliver full UAD-compliant electronic appraisal report data (if appraisal required), and loan delivery data must be provided in industry-standard ULDD format (unless manually entered in Loan Delivery

Appraisal software forms providers will incorporate the UAD field-specific standardization requirements into their appraisal report form software. The appraisal data must conform to UAD and be delivered through the Uniform Collateral Data Portal (UCDP), the joint portal through which lenders will submit electronic appraisal reports for delivery to Fannie Mae or Freddie Mac. The UAD and UCDP will help lenders, the GSEs, and other industry participants manage collateral risk through efficient collection and enhanced quality of appraisal data.

With the UAD, the GSEs will require that appraisals be completed with standardized responses in certain appraisal form fields. The standardization of certain data points will 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. The UAD standardized response requirements include:

· Standardized formats for fields that include dates, currency, and other values

· Allowable values from a list of choices provided for certain fields

· Standardized abbreviations to allow more information to fit on the printed appraisal forms

· Standardized ratings and definitions for the “Condition,” and “Quality,” of the property and “Updated/Remodeled” status

The UAD supports improved quality and accuracy of the appraisal data while preserving each GSE’s ability to determine what the data means to loan performance and loan quality. The GSEs will each continue to exercise independent business judgment in evaluating and maintaining business terms, credit policies, and analytics. Differences in the assessment and use of the appraisal data will remain due to unique and separate business policies, mortgage products, and processes.

Purpose and Overview

This document provides field-specific standardization requirements for completing the GSEs’ uniform residential appraisal report forms listed in the table below (the appraisal forms) and covers many but not all of the fields on the appraisal forms. It is intended to provide instructions to lender underwriting and quality assurance staff to facilitate their review of residential appraisal reports for compliance with the GSE data standard. These requirements are in addition to either or both GSEs’ appraisal-related policies and guidelines, which are subject to change and identified in the Fannie Mae’s Selling Guide and Freddie Mac’s Seller/Servicer Guide. Conforming to the UAD is in addition to, and does not replace, appraisers’ development and reporting responsibilities as required by the Uniform Standards of Professional Appraisal Practice (USPAP).

The UAD will apply to the following most commonly used uniform residential appraisal report forms (Fannie Mae / Freddie Mac form numbers), which represent the vast majority of appraisals supporting loans delivered to the GSEs:

Instructions and requirements for these UAD-supported appraisal report forms are included in this document. The GSEs may extend the UAD and the standardized responses to the other appraisal forms at a later date. Please refer to Fannie Mae’s Selling Guide and Freddie Mac’s Seller/Servicer Guide regarding requirements for additional appraisal forms required to be submitted to UCDP.

The instructions and requirements for completion of the UAD forms are organized in the order in which they appear on the appraisal form. Information is organized in a table format and contains the form field label(s), a description of the requirement, the corresponding appraisal forms to which it applies, and a reporting format. “Reporting format” defines the standardized format for entering data on the appraisal forms.

Each form field is labeled as either a requirement or an instruction to define how it will be validated in UCDP. For form fields labeled as a requirement, UCDP will validate the data and will return an error message if the data does not conform to the defined reporting format. In the initial implementation of UCDP, error messages will appear as warnings; in the future they will transition to fatal errors. For form fields labeled as an instruction, UCDP will not validate the reporting format but the data must be transmitted if populated in the form by the appraiser. Regardless of the label, these fields are equally important for compliance with the UAD standardization.