Lenders have just a few days to comply with new appraisal delivery requirements on conforming mortgages, and several offerings from valuation firms and appraisal technology service providers promise to help with the transition.
Loans originated as of Dec. 1 and delivered to Fannie Mae and Freddie Mac on or after March 19, 2012, will need to have appraisals delivered through the Uniform Collateral Data Portal. The portal was developed as part of the Uniform Mortgage Data Program by the two secondary lenders at the direction of their regulator, the Federal Housing Finance Agency, for the electronic collection of appraisal data.
Fannie outlined UCDP requirements in Announcement SEL-2011-06. The portal went live on June 27. A UCDP resource page is available online at www.efanniemae.com.
In Announcement SEL-2011-11 last month, Fannie clarified that lenders need to make sure all appraisals are completed in compliance with Appendix D: Field-Specific Standardization Requirements of Fannie's and Freddie's Uniform Appraisal Dataset specification. The appendix lists data requirements by appraisal form and how the data must be communicated. A "successful" status must be received from UCDP before the loan delivery date.
The new submission process requires that appraisals be provided in MISMO XML format or as a first-generation PDF.
GlobalDMS has set up a Web page explaining UCDP requirements and providing links to additional resources. The page from the Mortgage Daily advertiser also includes a request form to ask additional questions.
a la mode announced Monday that its Mercury Network was already submitting appraisals to the UCDP. The integration of the new feature went live last week following months of beta testing of the interface and APIs. The Oklahoma City, Okla.-based company said it received its notice from Fannie and Freddie and a production certificate from UCDP vendor Veros last month.
In the statement, a la mode Executive Vice President Jennifer Miller called the UCDP mandate "a huge transition for every lender and appraisal management company."
A UCDP resource page from a la mode, also a Mortgage Daily advertiser, is online at www.mercuryvmp.com/UCDP.
The Loan Quality Gateway was developed to directly integrate multiple divisions of Lender Processing Services Inc. with the UCDP, a Nov. 15 statement said. The integration promises to meet Fannie's and Freddie's requirements, including compliance checks for the new UAD requirements already in effect. It also will provide a single solution for managing a range of appraisal services and support MISMO standards for ordering and processing appraisal products.
Pointe Vedra Beach, Fla.-based InHouse Inc. reported late last month that it had already provided Weichert Financial Services with a full integration to the UCDP. Weichert Senior Vice President of Operations Nancy Crocetto was quoted in the announcement as saying that they were using the time between Sept. 1 and Dec. 1 to "get up and running." The service involves a one-time integration free of $7,500 and a per-transaction cost of $1.
"For lenders looking to access the UCDP directly versus via the GSE's UCDP Web-based interface which requires a manual upload, InHouse is providing lenders this convenient electronic access at no charge," the announcement said. "In addition, lenders using the InHouse Connexions appraiser-management platform get the freedom and bandwidth to work with an unlimited number of appraisers and AMCs, while maintaining a single system of record for all appraisals."
InHouse President and Chief Executive Officer Jennifer Creech previously explained that some lenders didn't realize they and their designated agents both need to register for UCDP and set up their business profiles before they can deliver appraisal data to the UCDP. She also noted that InHouse was one of just 23 UCDP direct integration providers at the time.
An Oct. 10 announcement from Bradford Technologies indicated that its PortalDirect was the first UCDP submission service powered by the Windows Azure cloud computing platform. The service promises AMCs and lenders "complete scalability with a virtually limitless capacity for submitting appraisals through the UCDP portal."
A month earlier, San Jose, Calif.-based Bradford said its newly launched DirectCLICKS appraisal delivery solution enables AMCs and lenders to accept ClickFORMS appraisals directly from appraisers while also meeting XML and UAD requirements. The service is free and can reportedly be implemented in just a few days.
SharperLending LLC, a lender agent with the UCDP, said last month that its appraisal firewall product was enhanced to perform a new data validation check on UCDP-submitted appraisal files. The enhancements promise to cut down on the time spent by lenders going back-and-forth between appraisers and UCDP by catching common errors before submission.
SharperLending is offering an ongoing UAD and UCDP training campaign about all of the changes as well as a complete UCDP lender education and training guide with step-by-step instructions.
As of September, StreetLinks Lender Solutions said it was in the process of integrating for delivery to the UCDP on behalf of its clients and expected to be prepared for UCDP compliance before the Dec. 1 deadline.
Coester Appraisal Group said in September than it can enable lenders to be UCDP compliant. At the time, the Rockville, Md.-based AMC said it was still integrating delivery methods to the UCDP on behalf of early adopter clients.
Sapphire, a Web-based ordering and review platform recently announced by Veros Real Estate Solutions, includes modules for UCDP submission. The offering's UCDP suite includes UAD/UCDP preview, UCDP override and submission and PDF extraction functions.
A white paper from Veros explains language in the Interagency Appraisal & Evaluation Guidelines. The report discusses how five basic requirements established in original 1994 guidelines are unchanged in the latest rendition.
Santa Ana, Calif.-based Veros hosted a Webinar on the subject in February. Veros said in January that it was already UAD and UCDP compliant.
A new UCDP "plug-in interface" unveiled two months ago by ISGN Corp. for its clients using its loan origination system, MORvision, was scheduled to go live last month. Lenders can utilize the new offering for reports from ISGN's AMC, appraisal panels managed by ISGN systems and staff or from their own appraisers through the MORvision product.
An alliance between BuildFax and DataVerify enabled 387 lenders to meet property-improvement validation requirements outlined in UAD, a Sept. 12 announcement indicated. Over the prior three months, the lenders adopted BuildFax's Property Improvements Intelligence Reports through DataVerify's DRIVE risk-mitigation platform.