Appraisal changes at Fannie and Freddie unevenly adopted
The government-sponsored enterprises Fannie Mae and Freddie Mac started implementing the Uniform Collateral Data Portal as part of the ongoing Uniform Mortgage Data Program on Thursday. The new program accepts electronic appraisals via a new .XML data report. The previously popular .pdf is no longer being accepted. It's a change that early reports indicate will get off to a slow start. For the most part, given the scope of the project, several street-level appraisers may struggle to get their heads around the new process. The Uniform Collateral Data Portal is at its heart a quality-control initiative. Under the uniform delivery, the GSEs will have an easier time enforcing repurchase and warranty claims. The lender can be made aware of a possible appraisal problem before the loan is even closed. Once an appraisal is delivered to the portal a "submission summary report" gives the GSE go-ahead to close. If the appraisal doesn't get a SSR, it can't close and must be resubmitted in the correct format. "The problem is where lenders who do 20 to 30 loans a month, they don't have an appraisal management company or someone to call on them to insure they are up to date and ready to go," said of Matt McHale co-founder of Global DMS, a mortgage technology firm. Independent lenders are not mandated to use an AMC, or anyone else for that matter, for UCDP compliance. They do, however, still need to independently register directly with the UCDP. And if they haven't by now, they can't close Fannie or Freddie deals. "It can delay the whole process if that SSR isn't done," he added. "It takes time and time kills deals." McHale adds that the Federal Housing Administration is adopting the Uniform Appraisal Dataset portion of the UCDP on Jan. 1. Some correspondent lenders may be under the assumption they can wait until then. They can't. Write to Jacob Gaffney. Follow him on Twitter @jacobgaffney.