Updates Available for Uniform Appraisal Dataset

The Uniform Appraisal Dataset (UAD) standardizes key appraisal data elements to enhance data quality and promote consistency for mortgages purchased by the government sponsored enterprises (GSE), Fannie Mae and Freddie Mac. For appraisals with an effective date (date of inspection) on or after September 1, 2011, the appraisal report must be completed in compliance with the UAD for conventional mortgage loans sold to Fannie Mae or Freddie Mac. A frequently asked questions document on the UAD and the Uniform Mortgage Data Program (UMDP), an UAD tutorial, and an UAD Interactive Resource Manual are now available. Several technical resources have also been updated.

  1. All realtors should read the Fannie Mae “UAD Requirements” . Their MLS listing(s) should have the same Requirements as the Appraiser:
    Not updated, Updated, Remodeled,
    Condition Rating and Definitions, C1, C2, C3, C4, C5, & C6.
    Quality Ratings and Definitions, Q1, Q2, Q3, Q4, Q5, & Q6
    Requirements – Abbreviations Used in Data Standardization Text

    As a Broker Manager, and Certified Appraiser the above data will be in my MLS
    listing sheet(s). Why, I do not want the Lender’s Appraiser making a guess about my listing data when using same for a comparble listing for the subject property.

    Coach Jack

  2. Appraiser

    There is an extremely urgent and important matter that the Virginia Coalition of Appraiser Professionals (VaCAP) wishes to bring to your attention. The Government Sponsored Enterprises (GSEs), which are The Federal National Mortgage Association (FNMA) and The Federal Home Loan Mortgage Corporation (FHLMC), have mandated Real Estate Appraisal reporting requirements that will severely compromise the integrity of information provided in appraisal reports and potentially eliminate the private appraisal profession. This new, comprehensive format will cause unnecessary risk and expense to the citizens of The Commonwealth of Virginia.
    A Uniform Appraisal Data (UAD) format is to be effective 9/1/2011. The proposed formatting requires an appraiser to provide a proprietary code unique only to the FNMA and FHLMC developers, rather than a true description of the property. This UAD code will result in incomplete and/or misleading information that must be “corrected” or supplemented in the often unread or overlooked narrative body of an appraisal report. In addition, the format is designed for the analysis of properties in major metropolitan or large suburban communities. This causes additional discrepancies in the rural Virginia market areas, which compose the geographically predominant portion of the Commonwealth. The GSEs claim the UAD codes, originally announced 12/2010, were developed “at the direction of the Federal Housing Finance Agency (FHFA)”, however the concept for a proprietary standardized data set is not revealed in any FHFA documents researched.
    The GSEs have previously and currently suggest appraisal report underwriting guidelines. However, absent any relevant legislation, or executive order, are now setting Federal mandates to appraisers. The mandates override the Virginia Code, which for appraisal procedures is the Uniform Standards of Professional Appraisal Practice (USPAP). This is another case of a quasi‐Federal agency usurping Virginia law, and it will force Virginia appraisers to opt either for UAD or Virginia law compliance. UAD compliance will be the necessary choice in most instances because of the GSE domination of the market. This will cause a series of omissions, resulting in a misleading appraisal report and placing appraisers at risk for license suspension or revocation.
    The GSEs are not the primary named client and only one of several lesser “intended users”. As an intended user, the GSEs do not retain ownership of an appraisal report, yet they intend to extract and utilize the data for purposes other than those stated in the appraisal report. The GSE’s stated purpose of the appraisal report is “… to provide the lender/client with an accurate, and adequately supported, opinion of the market value of the subject property.”(emphasis added). The UAD mandate does not support this stated purpose of the appraisal and is tantamount to government‐sponsored theft of the appraiser’s personal research and data that will be used to further reduce the reliance on appraisal services.
    The stated purpose for the UAD standardization is for review and to capture “consistency”. This has been highly influenced by private entities, outside the Commonwealth, in order to utilize the extracted data to develop
    Automated Valuation Models (AVMs). AVMs are computer‐driven valuation tools, for use in lieu of independent appraisers, which politically outsource income taxes from Virginia residents. AVMs have long been proven to be unreliable and dangerously inaccurate at estimating market value, especially in rural areas. Facilitating the shift away from professional appraisal analysis and geographic expertise toward computer‐generated value estimates will be disastrous for the housing market and eventually the entire financial system. The Commonwealth of Virginia should not continue to pay the price for bad Federal policies that usurp the rights of states.
    The precedent set by demanding that deceptive information be inserted into appraisal reports will potentially allow any client to require an appraiser to enter fabricated data, rendering the value conclusions unreliable. This is not a prudent objective for the state of the housing market or economic recovery. Not only does the mandate do nothing to enhance the usefulness or accuracy of an appraisal report, it is an obvious obstruction of appraiser independence that federal and State legislation purports to protect. This is especially egregious considering Fannie Mae and Freddie Mac’s track record of inefficiency and their major contribution to the housing bubble and eventual collapse. Taxpayers have already contributed $130 billion to bail out the GSEs, and the UAD will lead to further decline in the housing market, more failed loans, and greater cost to the taxpayer. Additionally, it will drive the already battered appraisal profession to virtual extinction.

  3. Appraiser

    The cracks are beginning to appear in the UAD wall, and VaCAP has been leading the effort on behalf of our members. Now is the time. We have two days left to make as much noise as possible. Since the Attorney General and the VREAB are tasked with regulating appraisers and upholding state law (which is USPAP), getting our state Appraisal Board on record that they affirm our concerns about UAD and support the effort to have it delayed was a critical step. Now we need to bombard the Attorney General will requests to uphold our law. The website for contacting the Attorney General is http://www.vaag.com/ContactUsForm/ContactForm.aspx. The fax is 804-786-1991. The Attorney General’s job is to enforce Virginia law, and this is what we need to focus on asking him to do. WE NEED EVERYONE’S HELP!! PLEASE!!!

  4. All Agents should note these requirements – as the Lender Underwriters WILL be looking at your MLS information and if they do not match the Appraisal, there will be numerous requests for information which will FURTHER DELAY any loan closings, as if we don’t have enough delays as it is.
    The VAR & NAR may want to jump in with Appraiser Boards and Appraisal Orgs to stop the implementation of (at least delay) of the UAD. The potential disastrous consequences (such as FURTHER DELAYS in loan closings) WILL harm the tenuous hold we have on the housing recovery.
    This affects all of our livelihoods in a negative way.

  5. I saw an article on this in the paper this morning. I then went on line & found this & posssted it on facebook, linked-in, & facebook. Posting it everywhere. I’m in the porcess of updating seller disclosure on listing this morning with my sellers. I’m looking for a definition of renovation. is there one that minor verses major renovations and quality are relative to the quality materials, skills, & the condition of construction. I’ve already asked for an update from the state board on immediate training. it appears this is being rushed through with little or no notice to anyone.

  6. Appraiser

    This UAD is established to assist FNMA/FHLMC/BANKS/AMC to create a database of appraiser’s reports.