Earlier this month, the Government Sponsored Enterprises (GSEs) issued their Uniform Appraisal Dataset (UAD) Update and Uniform Collateral Data Portal (UCDP) Release Notification to announce the first phase of the conversion of current UAD compliance warning edits to fatal UAD edits within the UCDP. The first phase of the conversion, which is set to be implemented in June 2013, includes the following data fields:
1) Appraisal effective date
2) Subject contract price / Comparable sale price
3) Above grade Gross Living Area (GLA) (subject and comparables)
4) Sale type (subject and comparables)
Fannie and Freddie will initiate the second phase of the conversion for the remaining applicable data fields during the second half of 2013, and will provide all the associated messages and forms at least 90 days prior to the official conversion. The second phase of the conversion, which currently has no set implementation date, includes the following data fields:
1) Subject and Comparable address (including unit number for condominiums)
2) Subject contract date / Comparable date of sale/time
3) Condition rating (subject and comparables)
4) Quality of construction rating (subject and comparables)
5) Location rating (subject and comparables)
6) View rating (subject and comparables)
Both phases of the conversion will apply to the four UAD forms—Fannie’s 1004/Freddie’s 70, Fannie’s 1073/Freddie’s 465, Fannie’s 1075/Freddie’s 466, and Fannie/Freddie’s 2055.
If an appraisal is submitted to the UCDP and receives one or more fatal UAD edits, it will initiate Hard Stop 401 (UAD Compliance Check Failure), and a “Not Successful” status will be issued in the UCDP as a result. If a lender or appraisal vendor receives this “Not Successful” status in the UCDP, they must first correct the appraisal and then resubmit it with the required data in the correct format.
In addition to these upcoming conversion phases, the GSEs also announced their intent to discontinue accepting appraisals in both PDF and other alternative formats. Fannie and Freddie haven’t come up with an official “retirement date” as of yet, but they did mention that they will work closely with lenders and vendors during 2013 that use these alternative formats to “ensure a smooth migration path.”
Once the official “retirement date” has been determined, both Fannie and Freddie will give lenders and appraisal vendors a 6 month notice so they have time to familiarize themselves with the MISMO XML file format. Be sure to keep a look out for more updates from the GSEs regarding this impending change as 2013 progresses along.