This week, the Federal Housing Administration (FHA) released Mortgagee Letter 2011-30: The Uniform Appraisal Dataset (UAD) and Appraisal Reporting Forms. The ML states that FHA will adopt UAD and two of the UAD compliant reporting form for all FHA case numbers assigned on or after January 1, 2012. This also applies to HUD REO and pre-foreclosure sales after the first of the new year. Lenders may submit loans for endorsement with UAD-compliant appraisals prior to this date but are not required to do so.
FHA will require the UAD modified appraisal form for the Uniform Residential Appraisal Report (Fannie Mae 1004/Freddie Mac 70) and the Individual Condominium Unit Appraisal Report (Fannie Mae 1073/Freddie Mac 465). FHA does not accept exterior only appraisal reports.
FHA Roster appraisers are required to become familiar with UAD requirements and the modified appraisal forms. The ML identifies four UAD field specific compliance requirements. All other FHA appraisal reporting requirements remain in effect and the UAD requirements are not “a substitute for, and do not exempt FHA Roster appraisers from the requirement to provide adequate explanations in the addendum of the reporting form methodology, anomalies, property deficiencies and other conditions that may have an impact upon the value of a property and its marketability.“