Fannie and Freddie Issue UAD Update

Fannie Mae and Freddie Mac have issued an update to the Uniform Appraisal Dataset (UAD) to provide additional guidance for appraisers and lenders regarding the UAD.

This update is intended to provide clarification on condition and quality ratings, as well as some other lesser points.

When selecting quality (Q1 through Q6) and condition (C1 through C6) ratings, appraisers are reminded that these are overall ratings, and should be made on an “absolute basis,” not a “relative basis.”  In other words, the quality and condition ratings for the subject and comparables are each based on the property’s own merits, and are not based on how the property relates or compares to other properties in the market area.

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