Yesterday, the Federal Housing Finance Agency (FHFA) announced a new initiative by the government sponsored enterprises (GSE) Fannie Mae and Freddie Mac. The Uniform Mortgage Data Program is a joint effort to create uniform data standards and collection processes. According to an overview, the program will also create efficiency, strengthen risk management for the GSEs, and improve transparency.
Two of the three components will impact the appraisal industry. A Uniform Appraisal Dataset is being developed by the GSEs that “standardizes key appraisal data elements to enhance data quality and promote consistency.” The dataset will standardize data definitions for key subsets of fields on the uniform residential appraisal report. The Uniform Appraisal Dataset and requirements will be published by the GSEs in September. Appraisal reports will be required to use the dataset by January 1, 2011.
The Uniform Collateral Data Portal is being developed “for the electronic collection of appraisal data to minimize impact on lenders.” While standardization will occur the GSEs will each have additional requirements for their appraisal data. The Portal will be available in October. By April 1, 2011, lenders will be required to deliver appraisal data through the Portal for loans with application dates on or after January 1, 2011.
A list of FAQs is available here and here.