Uniform Appraisal Dataset (UAD)

New FHA Mortgagee Letter

MORTGAGEE LETTER 2011-30 (Click to download PDF)

To

ALL APPROVED MORTGAGES

ALL FHA ROSTER APPRAISERS

Subject

The Uniform Appraisal Dataset (UAD) and appraisal reporting forms

Purpose of this Mortgagee Letter

The Federal Housing Administration (FHA) will adopt the Uniform Appraisal Dataset (UAD) and two of the UAD Compliant appraisal reporting forms, which further define specific data fields in these industry standard appraisal reporting forms.

Effective Date

To allow Mortgagees sufficient time to make any necessary data system changes, the requirements of this Mortgagee Letter are mandatory for all case numbers assigned on or after January 1, 2012 and for all appraisals performed on HUD real estate owned (REO) and Pre-Foreclosure Sale (PFS) properties with an effective date on or after January 1, 2012.

Prior to the effective date, Mortgagees, at their discretion, may accept and submit for loan endorsement an appraisal in either a UAD compliant format or a non-UAD compliant reporting format.

Background

The UAD is the result of collaboration between the Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac, at the direction of the Federal Housing Finance Agency (FHFA) to standardize data reporting quality and improve the collection of electronic appraisal data.

The UAD is part of the Uniform Mortgage Data Program (UMDP), which includes the:

• Uniform Collateral Data Portal (UCDP) and,
• Uniform Loan Delivery Dataset (ULDD)

The UCDP is a web application that will enable lenders to submit appraisal report forms electronically. The ULDD is a standardization of loan delivery data that will leverage the use of MISMO (Mortgage Industry Standards Maintenance Organization) in delivering loan data electronically. FHA is not adopting or requiring the use of the UCDP or the ULDD at this time.

In an effort to enhance appraisal data quality and consistency and to promote the collection of electronic appraisal data, the GSEs have developed the UAD to standardize the input values for certain data elements. For example:

• Specific date
• Dollar amounts
• Property condition
• Quality of construction

Fannie Mae and Freddie Mac have modified the Uniform Residential Appraisal Report and the Individual Condominium Unit Appraisal Report forms, which are forms currently required by FHA, to include UAD requirements. Appraisal software vendors have also incorporated the UAD requirements into their form software that is currently available on an industry wide basis. Information that was never explicitly required in the GSE's appraisal reporting forms before includes:

• Days on market for the subject property and each comparable sale
• Updating or repairs to kitchen and bathrooms in the subject property
• Sale type for the subject property and each comparable sale

New FHA appraisal reporting requirements

The following table identifies which appraisal reporting forms have been modified by the UAD and which modified forms will be required and/or accepted by FHA.

UAD Modified Appraisal Form Fannie Mae/ Freddie Mac Form # FHA Required

1 Uniform Residential Appraisal Report Fannie Mae 1004 Freddie Mac 70 Yes

2 Individual Condominium Unit Appraisal Report Fannie Mae 1073 Freddie Mac 465 Yes

3 Exterior-Only Inspection Residential Appraisal Report Fannie Mae 2055 Freddie Mac 2055 Not accepted

4 Exterior-Only Inspection Individual Condominium Unit Appraisal Report Fannie Mae 1075 Freddie Mac 466 Not accepted

To help you incorporate UAD requirements into your business processes, we encourage you to take advantage of these UAD resources:

• Preparing Your Appraisal Providers for the September 1, 2011, UAD Effective Date
• UAD Recorded Tutorial
• UAD Interactive Reference Manual
• UAD Live Web Seminars
• Fannie Mae Monthly UMDP Yardstick

To improve the quality and consistency of appraisal data on loans delivered to the GSEs, Fannie Mae and Freddie Mac, at the direction of the Federal Housing Finance Agency (FHFA), have developed the Uniform Appraisal Dataset (UAD), which defines all fields required for an appraisal submission for specific appraisal forms and standardizes definitions and responses for a key subset of fields.

For appraisals with an effective date (date of inspection) on or after January 1, 2012, the appraisal report must be completed in appraisal compliance with the UAD for conventional mortgage loans sold to Fannie Mae or Freddie Mac.

The UAD is a component of the Uniform Mortgage Data ProgramSM, jointly established by Fannie Mae and Freddie Mac under the direction of our regulator, the Federal Housing Finance Agency, to provide common requirements for appraisal and loan delivery data.

• UAD Overview (.pdf)
• UAD FAQs (.pdf)
• UAD Tutorial
• UAD Interactive Reference Manual
• UAD Compliance Rules (.xls)

UAD Business Resources for Lender Underwriting and Property Valuation Staff

The UAD Field-Specific Standardization Requirements are designed to assist those in any organization who are responsible for creating and reviewing appraisal reports during the property inspection, underwriting, property valuation, or quality control processes to assess the impact of the UAD requirements on those processes.

• UAD Field-Specific Standardization Requirements (.pdf)

UAD Technical Resources for Lender/Vendor Technology Development Teams

The UAD Technical Specification and supporting documents will help map the current appraisal forms to the new appraisal dataset. This information will be most relevant to appraisal software/forms vendors, lenders who use appraisal data in their business processes, and other organizations such as Appraisal Management Companies (AMCs) that will work with electronic appraisal form data.

The UAD Technical Specifications Pending Changes Log contains critical updates to data in the UAD Technical Specification and Appendices that have not yet been incorporated in the posted versions above.

• UAD

Dodd-Frank

Appraiser Independence