As published in Scotsman Guide's Residential Edition, May 2011.
The government-sponsored enterprises' new requirements for appraisal reports and loan-application delivery will dramatically change how lenders submit applications and appraisal reports. The new requirements also will affect the amount of loan information required. Mortgage brokers and loan originators should familiarize themselves with the changes.
The Uniform Mortgage Data Program, established jointly by Fannie Mae and Freddie Mac, calls for the implementation of several new requirements, including the Uniform Appraisal Dataset, Uniform Collateral Data Portal and the Uniform Loan Delivery Dataset. These tools were designed to improve data accuracy and transparency and build confidence in loan quality.
The Uniform Appraisal Dataset, for example, will act as a quality-control check that uses a data points system. Key points must be reached for the system to classify a report as a complete appraisal. This is similar to the error-and-omission check many appraisal-form vendors currently offer in their software. Appraisers will be required to use the Uniform Appraisal Dataset on Fannie Form Nos. 1004, 1073 and 1075; Freddie Form Nos. 70, 465 and 466; and joint Form No. 2055.
Fannie and Freddie aren't making significant changes to any of these forms. Instead, they're focusing on establishing clear definitions that generate standard responses for key data-entry fields. They are also working with appraisal-form vendors to create a Uniform Appraisal Dataset form that appraisers can access through various appraisal software. The new form will be required in all appraisals for single-family loans sold to the secondary market. Beginning this coming Sept. 1, appraisers must comply with Uniform Appraisal Dataset requirements and use the new form in their appraisal reports.
Another requirement is the implementation of the Uniform Collateral Data Portal. The portal will allow lenders to submit appraisal data electronically. Once administered, lenders can access the portal on the Web or through system-to-system integration.
Appraisals must be in electronic format to be submitted through the portal. This can occur in one of two ways:
Appraisers can submit the appraisal to the lender in the appropriate electronic format, typically XML or MISMO.
Lenders can submit appraisals through the Uniform Collateral Data Portal in PDF format. They will have the option to convert the appraisal into an appropriate electronic format. The portal will charge lenders a small fee for the conversion.
Page: 1 2 Next