Implementation of 12/1 UAD Identifier Hard Stop Postponed and other UCDP Updates
November 18, 2011
As we get closer to the next Uniform Mortgage Data Program® (UMDP®) milestone date of December 1, the GSEs (Freddie Mac and Fannie Mae) are seeing a steady increase in the volume of appraisal report submissions to the Uniform Collateral Data Portal® (UCDP®). This increasing volume, along with ongoing discussions with our lenders, demonstrates a positive adoption trend for the overall effort to standardize and collect appraisal data.
To support full adoption of the UCDP, the GSEs and other industry players have worked together to adapt their systems to accommodate the new appraisal data delivery requirement and data standards. As part of this effort, we identified several issues impacting successful adoption for lenders and their agents.
Format Compatibility Issues Fixed by End of November
As previously communicated in the News Update section on the UCDP, we identified format compatibility issues in the UCDP that resulted in some UCDP early adopters receiving UAD warning messages on appraisal data files that appear to be compliant with the UAD standard. The identified issues will be fixed at the end of November, in advance of the December 1, 2011 appraisal data collection requirement for loans delivered on or after March 19, 2012.
Once the issues described above are addressed lenders should refocus their efforts on reviewing each warning message generated by the UCDP to determine whether the appraisal report complies with the UAD and related appraisal requirements, or needs to be corrected by the appraiser.
Data Transfer Issues
In addition, we have become aware that issues are arising in connection with the transferring of data between the different parties involved in the appraisal process before the data is submitted to the UCDP. In at least one case, the appraisal report was completed correctly on a UAD-compliant form by the appraiser. 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.
We strongly encourage lenders and their agents to review their submission results including the UAD Compliance edits in the Findings section of UCDP to ensure that all of the required UAD data is present and in the correct format. It is important that lenders and their agents analyze each warning message to ensure the delivery of UAD-compliant appraisal reports to the UCDP. Lenders are responsible for ensuring that data submitted to the UCDP, whether by them or their agents, meets the GSEs' UAD and UCDP requirements.
Postponement of UAD Identifier Hard Stop Transition
To provide lenders ample time to review the warning messages and make any necessary changes to their processes before the delivery mandate, the GSEs are postponing the transition of the first warning message to a hard stop. This edit checks for the presence of the "UAD Identifier" that indicates the appraisal has been completed on the correct form (identified by "UAD Version 9/2011" in the footer of the form as well in the data file submitted to the UCDP).
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. 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 for appraisals with effective dates of September 1, 2011 or the delivery of the appraisals for loans with applications dated on or after December 1, 2011 that are delivered on or after March 19, 2012. It also does not change the status of the hard stops that exist in the UCDP today.