The government-sponsored enterprises' Uniform Mortgage Data Program has been marred with delays and setbacks since the earliest steps began at Fannie Mae two-and-a-half years ago with the precursor to the Uniform Collateral Data Portal, the technology platform that will accept full electronic appraisal reports in a new XML-formatted data file.
So it should come as no surprise that many appraisal professionals are speculating that the upcoming Dec. 1 deadline for mandatory use of the UCDP will get pushed back. Appraisal technology vendors claim that many appraisers and appraisal management companies didn't meet the Sept. 1 deadline to begin generating reports in the proper XML file format required for UCDP delivery, called the Uniform Appraisal Dataset or UAD.
In addition, Freddie Mac acknowledged that problems discovered during the testing phase of the UCDP delivery process included some appraisals being rejected despite appearing to be compliant with the UAD format, as well as issues relating to data transmissions.
“In at least one case, the appraisal report was completed correctly on a UAD-compliant form by the appraiser,” an online bulletin issued on Nov. 18 reads. “However in the process of transferring the data from the appraiser to the lender, the required UAD data was removed or modified from the original appraisal data file as it was being loaded into the UCDP.”
The GSEs' deadline for mandatory appraisal delivery is currently set for all loans that have application dates on or after Dec. 1 that are sold to Fannie or Freddie on or after March 19.
And any speculation of a delayed timeline is merely wishful thinking, according to the GSEs conservator, the Federal Housing Finance Agency, who said Tuesday that the Dec. 1 deadline is not being changed.
Lenders, appraisers and AMCs have had months to prepare, but some technology vendors who support these activities—who asked to comment anonymously to avoid angering their clients—say if lenders and appraisers aren't ready, it could force the GSEs to reject loans for sale because the appraisal requirement isn't met.
However, a Freddie Mac spokesperson confirmed Tuesday that the Dec. 1 deadline will still be enforced, but said the GSEs will be lenient at first, providing warning messages to lenders who submit appraisals in the wrong format.
“What's been postponed is the transition of the first warning message on an appraisal submission to a hard stop in order to give lenders ample time to review the warning messages and make the necessary changes to their processes,” the spokesperson wrote in response to MT's emailed questions.
But this leniency is limited to one specific check, called the “UAD Identifier,” which indicates the appraisal has been completed on the correct form.
“The UAD Identifier edit was scheduled to transition to hard stop with a 'fatal' severity on December 1, 2011, but will now transition to a hard stop at a later date,” the Freddie Mac bulletin reads. “Until that time, it will remain a warning message. Once transitioned to a hard stop, the message cannot be overridden and will result in the appraisal report receiving a "Not Successful" status in the UCDP.”
“Please note this does not change our current requirements regarding UAD-compliant appraisal forms…or the delivery of the appraisals for loans,” the bulletin continues. “It also does not change the status of the hard stops that exist in the UCDP today.”
