In the Spring 2011 issue of the FHA Appraiser newsletter, HUD confirmed what many appraisers already suspected – compliance with the Uniform Appraisal Dataset (UAD) will be required for FHA appraisals reported on the 1004 (URAR) form and the 1073 (Condo) form. Appraisals reported on other forms, such as the 1025 and 1004C, will not be required to be UAD compliant.
The UAD is part of an appraisal quality initiative created by Fannie Mae and Freddie Mac, and is intended to standardize many specific data points in appraisal reports. Appraisers are required to use the UAD starting on September 1, 2011 for conventional loans. The FHA Appraiser newsletter did not provide a specific date for UAD implementation for FHA loans; it stated that FHA plans to release additional UAD guidance later this year.
By Daniel A. Bradley, SRA, CDEI
The hype and excitement for April 1, 2011 is now a memory. For appraisers who thought this date would bring about higher appraisal fees from AMCs and other clients, bitter disappointment has undoubtedly begun to set in. Appraisal-related blogs, message boards, and websites are trumpeting the news – it is just business as usual. The promise of higher appraisal fees turned out to be an April Fools’ joke on an entire profession.
So for residential appraisers, what now?
On April 12, 2011, Fannie Mae and Freddie Mac (known collectively as the Government Sponsored Enterprises, or GSEs) posted revised guidance regarding the Uniform Appraisal Dataset (UAD) to their respective websites.
The existing Questions and Answers (Q&A) document was updated to reflect some additional guidance, based on concerns that were brought to the attention of the GSEs by appraisal organizations and educators.
Specifically, 21 new questions and answers were added to the previously-posted Q&A document. These new questions and answers regarding the requirements of the UAD provide additional clarification on items such as applying the new C1 through C6 condition ratings, and what to do if certain information, for example basement square footage, is not available to the appraiser. Continue reading »
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