HUD Embraces Implementation of the Uniform Appraisal Dataset [UAD]

" In December 2010, Freddie Mac and Fannie Mae (the GSEs) published the full details of the Uniform Appraisal Dataset (UAD). The publication of the 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, marked a major milestone in our effort to improve the quality and consistency of appraisal data delivered to the GSEs. " - Freddie Mac Update

The Spring 2011 (Issue 3) of FHA APPRAISER embraces that initiative with their article "Uniform Appraisal Dataset [UAD]

In an effort to enhance appraisal data quality and consistency and to promote the collection of electronic appraisal data, Fannie Mae and Freddie Mac (the Government Sponsored Enterprises or GSEs) have developed the Uniform Appraisal Dataset (UAD). The UAD modifies 4 of the industry standard appraisal reporting forms: the URAR, the Individual Condominium Unit Report, the Exterior Only

Residential Inspection Report and the Exterior Only Inspection Individual Condominium Unit Report. Fannie Mae and Freddie Mac will require appraisals reported on one of these four appraisal reporting forms to be in compliance with the UAD for all conventional loans delivered to the GSEs on or after September 1, 2011. The UAD is part of the Uniform Mortgage Data Program (UMDP) which also includes the

Uniform Loan Delivery Dataset (ULDD) and the Uniform Collateral Data Portal (UCDP). As the ULDD and the UCDP are for submission and electronic collection of appraisal and loan data related to conventional loans delivered to the GSEs, this article will only address the UAD which will directly impact FHA Roster Appraisers. When performing appraisals reported on the URAR and the individual condominium unit report form, FHA Roster Appraisers will be required to submit reports which are UAD compliant. FHA does not permit the use of either of the two exterior only inspection reporting forms.

The UAD will standardize the definitions of select key appraisal data elements such as property condition and quality of construction as well as the describing the view which will prevent appraisers from inputting descriptions such as average in the field for view in the Site Section or average quality in the Improvements Section of the report. UAD compliant appraisal reporting forms require the following information that was never explicitly required before:

1. Days on market for subject property and the comparable sales
2. Specifically defined condition and quality ratings
3. Status of improvements to kitchen and bathrooms
4. Sale type for the subject property and each comparable sale

Appraisal report software form providers have incorporated the UAD requirements into their form software and UAD compliant appraisal reporting forms will be available on an industry wide basis this Spring.

FHA Roster appraisers can become familiar with the UAD field specific requirements detailed in Appendix D of the Uniform Mortgage Data Program by visiting either of the GSEs’ web sites: Fannie Mae or Freddie Mac

FHA plans to release guidance concerning the use of the UAD appraisal reporting forms later this year.

Source: FHA Appraiser - Spring 2011 [Issue 3]