Guidance for UCDP Early Adopters on UAD Warning Messages
October 18, 2011
The Uniform Collateral Data Portal® (UCDP®) includes a Uniform Appraisal Dataset (UAD) Compliance Check that currently results in warning messages only and does not affect the successful submission of appraisals to the UCDP. Receiving UAD Compliance Check warning messages in connection with a "Successful" status in the UCDP does not automatically render the appraisal report unacceptable.
Due to format compatibility issues, if you are using UCDP today as an early adopter, you may receive UAD warning messages on appraisal data files that appear to be compliant with the UAD standard. The GSEs are aware of these issues and are working to remediate them.
Until the issues have been resolved, you are not required to address the warning messages. However, it's important that you continue to ensure the appraisal report is completed using the correct form and is completed in accordance with Appendix D, UAD Field-Specific Standardization Requirements of the UAD Specification.
We will notify you when the format compatibility issues have been remediated. Once the issues have been remediated, lenders are responsible for reviewing each warning message to determine whether the appraisal report complies with the UAD and related appraisal requirements, or needs to be corrected by the appraiser. We encourage you to continue using the UCDP as a part of your UCDP adoption and implementation plans to test your new business processes.
In the future, some UAD Compliance Check warning messages will change to hard stops that will result in the appraisal report receiving a "Not Successful" status in the UCDP. We will notify lenders in advance of any transition from warning messages to hard stops.
The UAD does not reflect specific laws, regulations or requirements that may apply in each geographic region. Therefore, UAD warning messages may appear in the UCDP that the appraiser cannot clear due to an inability to obtain certain information in that geographic region. To accommodate these circumstances, these warning messages will not transition to hard stops. For example, prior sales information for the subject property and the comparable sales may not be available to the appraiser due to restrictions for that region.
This communication relates to the Uniform Mortgage Data Program®, an effort undertaken jointly by Freddie Mac and Fannie Mae at the direction of their regulator, the Federal Housing Finance Agency.