FHFA Delays UMDP Deadline...Again

The Federal Housing Finance Agency has again delayed implementation of the Uniform Mortgage Data Program, an initiative to update and streamline the loan and appraisal data collected by the government-sponsored enterprises.

The earliest stages of what's now known as the UMDP started nearly three years ago, and the project has been marred by delays, setbacks and other challenges. The March 19 deadline represented a scaled back implementation of an initiative the FHFA “designed to improve the consistency and quality of data for appraisals and other loan information.” Wednesday's announcement marks the fourth time that UMDP-related deadlines have been rescheduled.

In a statement released Wednesday afternoon, the FHFA said Fannie Mae and Freddie Mac won't begin requiring lenders to submit the new Uniform Loan Delivery Dataset file until July 23—more than four months later than the most recently schedule deadline of March 19.

The ULDD replaces the current proprietary 2,000-character flat files that Fannie and Freddie require from lenders. As Mortgage Technology reported in its December issue, published online this week, loan origination system vendors have been working for more than a year developing new processes and functionality for lenders to meet the new requirement.

The FHFA said the new ULDD deadline will not impact the deadlines for the new Uniform Appraisal Dataset electronic appraisal report and its delivery portal, the Uniform Collateral Data Portal. Lenders or their appraisal management companies must submit full electronic appraisal reports in the new UAD format for all loans sold on or after March 19 that have application dates on or after December 1.

On its website, Fannie Mae said the delayed implementation means a delay for the launch of EarlyCheck 2.0, the second version of its voluntarily pre-closing loan file review technology.

“Lenders who use EarlyCheck via Loan Delivery should work with their vendors to ensure they will still have access to the 2000-Character Loan Delivery File Format in order to leverage EarlyCheck via Loan Delivery capabilities,” Fannie Mae said in a statement. “Additionally, the September retirement date for EarlyCheck via Loan Delivery will be moved to align with the ULDD extension.”

“Given the magnitude of the UMDP effort, FHFA has announced a change in the Uniform Loan Delivery Dataset…timeline to ensure a continued smooth and orderly transition across the industry,” Freddie Mac said in a statement.

“We applaud the industry for continuing to make remarkable efforts to implement the entire UMDP on an aggressive timeline. The important changes made as a result of the UMDP will ultimately benefit borrowers, lenders and other market participants."