The “Point” of This Seminar<br />There <br />is no<br />“Point”<br />
When is a Period not a Period? <br />With the new UCDP and UAD screening you are going to have to check EVERY "point" (or punctuation 'period‘) on the appraisal report before the final delivery to Fannie Mae.<br /> <br />The UAD does not use the customary 'period' after abbreviations. So the old adage: "you must cross your ‘t’s' and dotting your ’i’s’” is now "cross your ‘t’s’ and drop your periods." <br /> <br />
When is a Period not a Period? <br />That little period is going to get your appraisal rejected and you will not be able to close your loan or deliver the file. <br /> <br />Note: That little 'period' comes into play when recording dollar amounts. There is no more 'cents' only whole dollar amounts allowed in “price” fields. Therefore, that little period is going to get your appraisal rejected. To remember this rule, think "It makes 'sense' for ‘NO CENTS’.”<br />
Key Dates (Cont’d)<br /><ul><li>Appraisal report forms for all conventional mortgages delivered to the GSEs on or after March 19, 2012, must be submitted to UCDP prior to the delivery date of the mortgage if:
The loan application is dated on or after December 1, 2011, and
An appraisal report is required</li></li></ul><li>What is Really Changing<br />Forms (similar but slightly different)<br />PDF Portability (First Generation Required)<br />Standards in conditions, terms, and “form” data<br />Some logistics on how the appraisal is handled<br />
What Will Change for Underwriters<br />Code Review instead of type review, lots of Acronyms to learn. <br />Will have to rely on technology to ensure appraisals are “technically” correct.<br />What they are comparing to will be different in the past. <br />Will be a “Pass” or “Fail” type submission to UCDP based on the Data Set. <br />
Examples<br />Site and Area<br />Areas less than one acre should be designated in whole numbers only and square feet. For an area greater than an acre, it must be measured in acres and up to two decimals. The unit of measure should be indicated as “sf” or “ac”.<br />Right: 23569 sf, 1.34 ac :: Wrong: 48,560 sf, 4 acres<br />
Examples<br />Date Formats: MM/DD/YYYY<br />Unless otherwise stated, date formats should be entered as MM/DD/YYYY. In the case where only a year format is required, like Tax Year, a 4 digit year is required.<br />Right: 09/01/2011 :: Wrong: 9/1/2011 or 9/1/11<br />
Examples<br />Estimation of years: ~ Must proceed the estimation<br />When you can’t provide an exact age or year a property was built through the normal course of business, an estimate is acceptable. However, a tilde (~) has to proceed estimates of age or year built.<br />Right: ~ 1948, ~ 42 :: Wrong: 1948 (estimate), est. 42<br />
Definitions of Condition<br />C1 – The improvements have been very recently constructed and have not previously been occupied. The entire structure and all components are new and the dwelling features no physical depreciation.*<br />C2 – The improvements feature no deferred maintenance, little or no physical depreciation, and require no repairs. Virtually all building components are new or have been recently repaired, refinished, or rehabilitated. All outdated components and finishes have been updated and/or replaced with componentsthat meet current standards. Dwellings in this category either are almost new or have been recently completely renovated and are similar in condition to new construction.<br />C3 – The improvements are well maintained and feature limited physical depreciation due to normal wear and tear. Some components, but not every major building component, may be updated or recently rehabilitated. The structure has been well maintained.<br />
Definitions of Condition<br />C4 – The improvements feature some minor deferred maintenance and physical deterioration due to normal wear and tear. The dwelling has been adequately maintained and requires only minimal repairs to building components/mechanical systems and cosmetic repairs. All major building components have been adequately maintained and are functionally adequate.<br />C5 – The improvements feature obvious deferred maintenance and are in need of some significant repairs. Some building components need repairs, rehabilitation, or updating. The functional utility and overall livability is somewhat diminished due to condition, but the dwelling remains useable and functional as a residence.<br />C6 – The improvements have substantial damage or deferred maintenance with deficiencies or defects that are severe enough to affect the safety, soundness, or structural integrity of the improvements. The improvements are in need of substantial repairs and rehabilitation, including many or most major components.<br />
Accessing UCDP<br /><ul><li>Either an XML data stream (output from appraisal forms software) with an embedded first-generation PDF file or a first-generation PDF file without the corresponding XML data must be submitted to UCDP
All XML files must include an embedded PDF file that includes all appraisal exhibits, addenda, and photographs, including the Fannie Mae Form 1004MC/Freddie Mac Form 71.</li></li></ul><li>Quality Control<br /><ul><li>UCDP will go through a series of checks, including a UAD Compliance Check. Appraisals that pass all checks will receive a “Successful” status from UCDP
All appraisals successfully uploaded to UCDP will receive a Submission Summary Report (SSR) for each GSE submission.
An appraisal must be submitted to UCDP and receive a “Successful” status on the SSR before the loan is delivered to the GSE. </li></li></ul><li>Cost<br /><ul><li>If the appraisal is only available in PDF format, as a convenience to users, a conversion tool will be available in UCDP for a fee (independently offered by Veros Real Estate Solutions – the technology vendor supporting UCDP).
There will be CLICK fees for submitting a file</li></li></ul><li>Example of PDF and XML Conversion <br />
Accessing UCDP Cont’d<br />A lender agent is an entity that a lender authorizes to perform functions within UCDP such as uploading appraisals and evaluating results. <br />
Registration Facts<br />Please note if your organization delivers loans to both GSEs, the primary lender administrator must be the same individual for both GSEs. The lender administrator is responsible for: <br />Establishing access to UCDP for the lender, confirming a relationship to one or both GSEs, setting up their organization’s profile, and adding additional users. <br />Initiating the setup of other lender administrators in the organization for the ongoing maintenance of UCDP access. <br />Authorizing lender agents to submit appraisals on behalf of their organization to UCDP. <br />
Accessing UCDP<br />The 3 Types of UCDP Users:<br />1. Administrator: In order to use the portal, lenders must determine an appropriate administrator. If the lender delivers appraisals to both Freddie and Fannie, then that administrator must be the same for both entities. This person has authority by Freddie Mac and Fannie Mae to manage access of all users as well as submit files, upload corrected files, review reports, and access personal user info.<br />2. Read-Only User: This user is selected by the Admin and focuses on the reporting aspects of the UCDP; ensuring reports are getting through successfully. The Read-Only User has the ability to track the automated reports and access his/her personal profile.<br />3. Lender Agent: The Lender Agent is an entity or user that has been authorized and invited to the UCDP by the Administrator. This is where the appraisal management company (AMC) comes in. If a lender decides to forgo the option to upload the appraisal report themselves, then their Lender Agent (typically their approved AMC) may have direct access to the portal for uploading and re-uploading appraisal reports, as well as evaluating result<br />
Appraisal Submission and Status Updates<br />Once the Administrator or Lender Agent uploads the appraisal report it will go through a series of checks, including a UAD compliance check as well as an address confirmation review. There are 4 different statuses that can occur after uploading the appraisal file:<br />In Progress: Once the document is uploaded, the administrator will receive an upload confirmation report that will most likely read “In Progress” due to the fact that it may take some time for the UCDP to analyze the data file and render the actual results.<br />Successful: The status will read “Successful” when the UCDP analysis is complete.<br />Not Successful: This means the UCDP encountered a fatal error resulting in failure to process the appraisal data file. The user must override the error, If appropriate, or submit a corrected appraisal data file.<br />Rejected: The most unfortunate of statuses, Rejected means the UCDP cannot nor will it conduct further processing. This can happen for various reasons including the submission of a duplicate file, the file size is too large, or the file format is improper. The user must request and submit the corrected appraisal data file to proceed.<br />
Appraisal Submission and Status Updates<br />Overrides, From Unsuccessful to Successful<br />When “Not Successful” or “Rejected” the status can also be referred to as a Hard Stop. A Hard Stop means that the report is rejected for errors or non-compliance with submission requirements.<br />There are several options to cure the hard stop, depending on the reason for it as provided by the GSE on the View/Edit page of the UCDP portal. Here are the options:<br />1) The UCDP automatically approves an override.<br />2) The administrator can manually request an override, if available.<br />3) The Admin obtains and uploads a corrected appraisal data file.<br />
Appraisal Submission and Status Updates<br />When the override is accepted, the status will change from Not Successful to Successful. If it is denied, then a link will appear requesting re-submission of the file.<br />In order to confirm delivery acceptance the Administrator must receive a successful status message including a doc file ID number which comes with the Submission Summary Report (aka SSR).<br />
Work out logistics of handling these files with them upfront.
They should handle the UCDP submission and revisions until the file receives an SSR.
You want a back up just in case they drop the ball or get overwhelmed by this process. </li></li></ul><li>In-House<br /><ul><li>Vero’s - $4.50 per file to convert from PDF to MISMO XML, you would upload the file form their.
Mercury Network – Has ability to check the appraisers file if the appraiser uses alamode and embed the XML, you would upload from their.
Will have to rely on appraisers to have a UAD Checker in their software.
Will have to have underwriters manually check every file to ensure UCDP and UAD Compliance.
Feedback reports will become your best friend.
Will be a DU or Loan Prospector type function “pre closing” </li></li></ul><li>About Us<br />Coester Appraisal Group, Rockville MD<br />Nationwide Appraisal Management Service<br />Staff and Panel Appraisers Nationwide<br />Dodd-Frank Compliant<br />UCDP and UAD Compliant and Ready<br />Automated and Appraiser done review on every file with notes<br />Can manage a lenders panel or use ours. <br />
About Us<br />Repurchase Defense – Inbound, Outbound or resolution.<br />100% Review Process – Duplicate Underwriters Process, reviewers notes, ranking of appraisers. <br />Provide training and legislative updates for all of our clients.<br />Voted Top Reverse Mortgage Appraisal Company by RMD in 2011<br />First to introduce smart phone app for vendors<br />