Appraisal industry readies for confusing GSE UAD deadline
Appraisers are somewhat confused about the looming Sept. 1 deadline for ensuring appraisal forms prepared for Fannie Mae and Freddie Mac are compliant with certain GSE standards. Effective Sept. 1, the GSEs want the appraisal industry prepared to use Uniform Appraisal Dataset-compliant forms when submitting appraisal information. On its website, Fannie Mae said parties that are not prepared for the change on Thursday should contact their appraisal managers to get help downloading UAD-compliant software from vendors. Matt McHale, chief marketing officer at appraisal software firm Global DMS, said appraisers who are not ready for the deadline can still obtain software updates from Global DMS's website and from other appraisal vendors. As of Wednesday, McHale said many appraisers are still confused about the Sept. 1 deadline because some have the erroneous belief that appraisers on Sept. 1 will have to deliver compliant forms in XML file format. McHale said XML files are not necessary at this time, although they will be part of the final program, which goes in effect in 2012. The XML file format deadline is Dec. 1. Instead, McHale said the Sept. 1 deadline is there to ensure parties are prepared to deliver a UAD-compliant appraisal form in PDF format. Earlier this week, appraisers became confused when the Federal Housing Administration pushed back its own deadline for implementing UAD guidelines. The agency postponed its compliance deadline to Jan. 1. McHale said professionals in the industry were confused by FHA's announcement and mistakenly believed it affected the GSEs' Sept. 1 deadline. "That caused a lot of confusion," he said. "Tomorrow is still the GSE's date (for ensuring UAD compliance), they are not moving it." Valuation vendor DartAppraisal.com released a press release reassuring its clients that the firm has the technology and data structure "to guarantee that appraisal reports adhere to UAD regulations." Lenders must deliver full UAD-compliant electronic appraisal report data beginning March 19, 2012, if an appraisal is required and loan delivery data must be provided in industry-standard ULDD format. Write to: Kerri Panchuk.