As of 09/01/2011 lenders and appraisers doing work FannieMe underwriting guidelines are required to use the new UAD appraisal forms.
The intent of this new guideline is for FannieMae and GSE to capture consistent data, and to manage risk.
This involves the major forms; the condo and URAR Single family reports. Four forms are new, and they are: the 1004, and 2055 Single Family; and, 1073 and 1075 Condo forms. The 1040 MC Market Conditions form has not yet changed. Yesterday it was announced that FHA will also use the new UAD forms!
The intent of the new Fannie requirement is to:
It affects both the lender and appraiser and each have special requirements in dealing with UAD. We must sent the lender PDF in an "XML" format, and the data is taken out of the appraisal report for analysis.
We have taken training on the new guidelines, and have successfully sent a report using the XML delivery and we are ready to deliver the UAD, XML report consistent with the GSE/UMDP guidelines now or by the 09/01/2011 deadline. You will also receive a PDF copy of the appraisal report as you are accustomed to seeing it.
Changes to the appraisal forms include standardized abbreviations. There are ratings for the quality of construction, condition, and location. For instance, the bed / bath disclosure will be standardized with a decimal. Such as a home containing two and one-half baths will be shown as "2.1" with the decimal separating them. A bathroom count of two full baths, with two half baths will be indicated as "2.2."
Other changes are to the "condition" and "quality" ratings. They will be labeled C-1 thru C-6, and Q-1 to Q-6, with C1 and Q1 being the highest and C6 and Q6 being the lowest, respectively.
A couple other good links for information on UAD are:
Delivery of the report by the appraiser should be done with a “first generation PDF, and embedded (encrypted) XML file”.
Thank you, we'll be in touch!