The affected topics (and specific paragraphs) are noted for each policy change. Lenders should review each topic to gain a full understanding of the policy changes. The updated topics are dated October 25, 2011.
Uniform Appraisal Dataset and Uniform Collateral Data Portal Requirements
On July 26, 2011, Fannie Mae issued Announcement SEL-2011-06, Selling Guide Updates, which contained information concerning the Uniform Appraisal Dataset (UAD) and the Uniform Collateral Data Portal (UCDP®). The UCDP is the joint portal through which lenders will be required to submit electronic appraisal reports to Fannie Mae and Freddie Mac. The UCDP was made available on June 27, 2011, for customers and their designated agents to begin to submit selected appraisal data files.
- Lenders must ensure all applicable appraisals have been completed in compliance with Appendix D of the Fannie Mae and Freddie Mac Uniform Appraisal Dataset Specification (“UAD Specification”). (Previously, the Selling Guide referred to the entire UAD Specification.) Appendix D lists the requirements for the data that must be included in specific forms and how the data must be communicated on the appraisal report.
- In addition to submitting the required Fannie Mae appraisal reports forms to the UCDP, lenders must also receive a “Successful” status from UCDP before the delivery date of the mortgage loan to Fannie Mae.
Updated Selling Guide Topic
B4-1.2-05, Requirements for the Appraisal Report
As a reminder, the following effective dates are applicable:
- The four UAD appraisal report forms with effective dates on or after September 1, 2011, must be completed utilizing Appendix D of the UAD Specification when reporting the results of an appraisal for a conventional mortgage loan.
- For all conventional mortgage loans for which an appraisal report form is required and with an application date on or after December 1, 2011, and a delivery date on or after March 19, 2012, selected appraisal report forms, including all exhibits, addenda, and photographs, must be submitted to the UCDP and receive a “Successful” status from UCDP before the delivery date of the mortgage loan to Fannie Mae.
In addition, the Selling Guide has been updated as follows:
- A2-5.1-03, Electronic Records, Signature, and Transactions (Uniform Collateral Data Portal™(UCDP™)): Information concerning the UCDP has been added to this topic.
- B4-1.4-12, Appraisal Report Review: Actual and Effective Ages of the Improvements: This topic has been changed to clarify that whenever adjustments are made to an appraisal for the year the dwelling was built, the appraiser must provide an explanation for the adjustments.
- B4-1.4-18, Appraisal Report Review: Lender Review of the Adjustment Grid (Proximity to Subject Property and Location, Date of Sale and Time Adjustments): The description of the proximity of the comparable sales to the subject property must now be reflected in “miles” and include the applicable directional indicator. This topic also requires the lender to provide the month and year of the sales contract and settlement or closing for comparable sales.
These changes are effective immediately.