The “Uniform Mortgage Data Program” for Appraisals
Under the direction of the Federal Housing Finance Agency (FHFA), Fannie Mae and Freddie Mac (the GSEs) have developed the Uniform Mortgage Data Program (UMDP) to enhance the accuracy and quality of loan data delivered to each GSE…
FOR CONVENTIONAL LOANS DELIVERED TO THE GSEs ON/AFTER MARCH 19, 2012 (and with loan application dates on/after December 1, 2011), Fannie Mae and Freddie Mac WILL REQUIRE appraisals to be completed using the new field-specific standardization requirements…
Now my take – while this implementation SHOULD help “level the playing” field between geographies, Appraiser’s unique styles, housing markets, etc. and make it easier for INVESTORS (Wall Street or otherwise) to know what they’re getting it will definately have some down sides:
1. Appraisals are 80% science, 20% Art. The “art” is very often what make the report make sense
2. Fitting nicely into a Bell Curve makes statisticians happy, but what if you’re at either end of the curve (high or low)? You’re in trouble.
3. Trying to be all things to all people usually makes more problems than it solves.
So where does that leave us? First, the current style of appraisal report is being revamped so you won’t be able to tell the players without a scorecard. Get a copy of the “Fannie Mae and Freddie Mac Uniform Appraisal Dataset Specification (UAD)” document for study and reference. Next, inform your clients that it will be better if they can submit a loan application BEFORE December 1st if possible. Finally, prepare for some extra time to close since every lender will be gearing up for this (and they’ve already started).
More “fun and games” in the Mortgage Industry — but fear not because I’m on the case!
Call Todd Abelson for all your Mortgage needs! (520) 331-LEND (5363).