UAD (Uniform Appraisal Dataset) went into affect September 1st, 2011. UAD standardizes certain data points to support consistent appraisal reporting regardless of geographic location of the property or any localized reporting conventions.
What does this mean to you? Expect appraisal turn times to increase to two weeks until the appraisers become familiar with the new software and procedures.
Here is a quick history on the changes that have taken place in the industry in the last few years.
HVCC (Home Valuation Code of Conduct) was implemented by the Federal Housing Finance Agency in May of 2009 in an attempt to improve the independence of appraisers. The FHFA felt that some lenders and builders were influencing their appraisers in regard to appraisal values which caused inflated property valuations. AMCs (Appraisal Management Companies) were formed to meet the new regulations. AMCs provide a layer of insulation between the lender and the appraiser. They also add a middle man and therefore increased appraisal costs.
In October of 2010 Fannie Mae and Freddie Mac issued new Appraiser Independence Requirements (AIR) to replace HVCC. AIR made no significant changes to the core principles of the HVCC. In other words the acronym changed but the rules and affect to the consumer did not.
And that brings us back to UAD. UAD will be used by Fannie Mae and Freddie Mac (The GSE’s), as a common way to deliver appraisals with uniform data requirements, like similar codes, to support improved quality and accuracy of data while preserving each GSE’s ability to determine what the data means to loan performance and loan quality, or how people pay the loans back.
It consists of the Uniform Mortgage Data Program (UMDP), the Uniform Loan Delivery Dataset (ULDD), the Uniform Collateral Data Portal (UCDP), and the Uniform Appraisal Dataset (UAD). The ULDD and UCDP will be behind the scenes type changes, some already in effect, other changes to come. But, the big change is (UAD).
The UAD standardizes certain data points to support consistent appraisal reporting. Similar definitions, codes, common verbiage, etc. will be expected on appraisals so that the GSE’s have a uniform way of determining the quality of valuation, and influences on loan performance. This information will be uploaded to a common portal, or website, monitored by a common entity.
So, appraisers, via the AMC’s formed by HVCC, will upload their information and two pages of codes, to the UMDP’s UCDP, so the GSE’s can uniformly assess a client’s Uniform Residential Appraisal.
In the same way that FHA, USDA, and VA eventually adopted HVCC, I would expect them to adopt UAD or something similar very soon as well.I think you will find UAD appraisals easier to understand once you get used to them. With all of these changes we can expect appraisal turn times to increase at least until the appraisers become familiar with the new software and procedures.
