In a notification sent out on August 7th, Fannie Mae announced its new two-stage program to provide proprietary feedback to lenders on appraisals they submit to the Uniform Collateral Data Portal (UCDP). Beginning in October 2012, Fannie will introduce monthly reports that will provide a summary of this new proprietary feedback/messaging, and these reports will allow lenders to review and understand these new warning messages at an aggregate level. The GSE is planning to add these messages to its transaction-level messaging returned as part of the UCDP submission in January 2013.
Now that the UCDP has been fully implemented within the industry with joint messaging by both GSEs that focuses on data standards and completeness, Fannie Mae wants to implement additional messaging that provides more information on the quality of the data based on their policy and delivery requirements. The GSE is requesting lenders to begin assessing their processes to ensure they are able to manage both the joint and Fannie Mae specific messages in the future.
Fannie’s Appraisal Messaging:
Fannie Mae developed these proprietary appraisal rules and related messages to offer feedback to lenders on the quality of their appraisal data submitted via the UCDP. These messages are designed to help lenders detect data inconsistencies, and improve the overall reasonableness and quality of appraisal data—beginning in January 2013, they will appear as “warning” messages in the UCDP. Fannie’s new appraisal messaging may be returned in the following categories: data reasonableness, adjustments, comparables, policy compliance, and proper eligibility. The messages are applicable to the four UAD forms—1004, 2055, 1073, and 1075—and a complete listing of the new messages is provided in the Fannie Mae Appraisal Message List on the UCDP eFannieMae.com page.
Note: The appearance of these new warning messages does not affect the “Successful” submission status for UCDP, nor does it necessarily mean that the appraisal is unacceptable; however, the absence of these warning messages doesn’t indicate or imply the acceptance of the appraisal either.
Message Manager Reports for Fannie Mae Sellers/Servicers Only:
Three reports will be available to Fannie Mae sellers/servicers on a monthly basis starting in October 2012 via Message Manager. The data contained in the reports will be based on the appraisals submitted to the UCDP in the prior month, and will give an overview of the appraisal messages, summary information, and benchmark and trending details. The three reports—which will be available around the fifth business day of each month—are titled: Overview of Fannie Mae Proprietary Messages on Active Appraisals, Fannie Mae Proprietary Appraisal Message Trending Summary by Seller/Servicer, and Summary Report for Active Appraisals.
Note: Fannie Mae approved sellers should designate an internal individual to access the monthly reports in Message Manager, and those individuals will need to register for the seller role in the Message Manager application using the same nine digit Seller-Servicer Number(s) used in the UCDP.
UCDP Submission Summary Report & User Interface Updates:
In January 2013, the UCDP interface will be updated to display the new Fannie Mae messages. The presence of one or more of these messages will cause a new Hard Stop—FNM0000—to appear on the Submission Summary Report (SSR), and this new hard stop will be automatically overridden by the system because the new messages are being introduced as “warnings”. Fannie’s SSR and Appraisal Findings Detail Report (AFDR) will also be updated in January 2013 to include the new messaging in a new section titled, Fannie Mae Proprietary Edit Findings.
Fannie plans to hold live webinars in September to review the monthly report formats, provide details on how to register for the Message Manager application to access the reports, and provide more information on the specific messages.