UAD

UAD

https://www.efanniemae.com/sf/lqi/umdp/uad/index.jsp

On September 1^st the UAD will be a requirement.  In essence it’s Fannie Mae’s way of trying to standardize the data in Real Estate appraisals so that someone can continue to get paid a quarter of a million dollars a year and maintain the budget for their department.

But what does that mean for us as appraisers?  It means that the 1004, the 2055, and the condo forms will become filled with meaningless gibberish that makes these impossible for a human to understand, difficult for a human to fill out and slightly more meaningful to the data crunchers at Fannie Mae.

Realistically Fannie should have just reworked the forms and also introduced the UAD; but they didn't so there are some weird catches in this thing.  Some text fields become multiple inputs like the listing commentary and the basement area in the sales grid will no longer make sense to anyone who hasn't sat for a lecture on it. But I digress...

As a prelude to this we'll all need to start getting used the new requirements, so as I think of them I’ll start posting ways to work these into your appraisals.

Was the subject listed?
If you're not already you should start including the days on market, list date and MLS number in this comment section.  If privately listed say so.  

Basement

In the sale grid show the square footage of the basement for the subject and comparables.  Yes, I know this is not the way most appraisers do it, it is now (this is just the start of the basement nonsense, by the way).  There should be no exceptions… …except of course slabs and crawl spaces.

Remember the 1025

So far the UAD does not apply to the 1025, so take advantage of that fact and continue to write these reports like a human being.

It's Finally Here

The Interagency Appraisal and Evaluation Guidelines were published without much fanfare in December.  Because I sleep at night and work during the day I am finally getting around to reading.


Link or http://www.fdic.gov/news/news/financial/2010/fil10082a.pdf

The First 6 Pages

So far reads like Fannie and Freddies Appraiser Independence Requirements under Dodd-Frank but that must just be a coincidence, right?

The first interesting thing is the language, appraisers are referred to as people more than once just in the first few pages.  I was a little shocked to see it but, and you'll get this in a second, it's important.  The thrust of the document right from the get go, though they do allow for management companies, is that the lending institution is to engage appraisers (note no Realtors, strangely left off the list) to complete appraisals.  Additionally even if the bank engages a management company it is required to then oversee the management company or to have systems and practices in place to manage the manager.   Seems like a waste to me.

As an appraiser I love this document and its not just wishful thinking.  This thing really gives a sense that the bank is required to manage its own processes and appraisers and it is not good policy to outsource it.

More to come...