On August 11, 2011 a revised Fannie Mae and Freddie Mac Uniform Appraisal Dataset Specification, Appendix D: Field-Specific Standardization Requirements was released. This is important information for all residential appraisers preparing for the UAD changes.
The following is a link to the revised Appendix D: Field-Specific Standardization
Document Version 1.2 Version Date: August 11, 2011
https://www.efanniemae.com/sf/lqi/umdp/pdf/uadappendixdfieldreqs.pdf
The following sections have new clarification and/or guidance. For your information the new language in these sections has been included. Please refer to Appendix D to see the context of the new comments.
Subject Section
Tax Year, Real Estate Taxes $
“Additional information about tax year(s) or tax amount(s) may be provided elsewhere in the appraisal report.”
Occupant
“Additional information regarding the occupancy of any accessory unit may be provided elsewhere in the appraisal report.”
Special Assessments $
“Additional information about special assessments may be provided elsewhere in the appraisal report.”
Is the subject property currently offered for sale or has it been offered for sale in the 12 months prior to the effective date of this appraisal? Report data source(s) used, offering price(s), and date(s).
“The appraiser may report any other relevant information regarding the length of time that the subject property was offered for sale, including cumulative days on market, in this field or elsewhere in the appraisal report.”
Contract Section
I did/did not analyze the contract for sale for the subject purchase transaction.
“The appraiser may report any other relevant information regarding the sale type, including whether more than one sale type applies, in this field or elsewhere in the appraisal report.”
Site Section
View
“Any additional information may be reported elsewhere in the appraisal report.”
“Note, the UAD does not limit the number of different view factors associated with a property that may be reported in the appraisal report. If there are more than two view factors, an appraiser may choose “other” and then enter a text description of the multiple view factors to the extent that the description fits within the allowable space on the appraisal report form. Any additional information that does not fit in the allowable space
may be reported elsewhere in the appraisal report.”
Improvements Section
Describe the condition of the property (including needed repairs, deterioration, renovations, remodeling, etc.)
“If information indicating whether material work has been done to the kitchen(s) or bathroom(s) in the prior 15 years is not available to the appraiser in the normal course of business, the appraiser is to either select “Yes” or “No” based on the
appraiser’s observations of the subject property and any other available information. The appraiser should indicate the basis for this determination in the appraisal report and describe the efforts undertaken to obtain the information.”
“Note, the UAD does not limit the information that an appraiser may provide about the condition of a property, including any updating or remodeling. An appraiser can and must provide any additional information required to communicate an appraisal in
a manner that is meaningful and not misleading, including providing sufficient information to enable the client and any other intended user(s) to understand the appraiser’s conclusions regarding the property condition and any updates or remodeling.”
Sales Comparison Approach Section
Data Source(s) (DOM)
“The appraiser may report any other relevant information regarding the length of time that a property was offered for sale, including cumulative days on market elsewhere in the appraisal report.”
Sale or Financing Concessions
“Note, The appraiser may report any other relevant information regarding the sale type, including whether more than one sale type applies, elsewhere in the appraisal report.”
Location
“Note, the UAD does not limit the number of different location factors associated with a property that may be reported within the appraisal report. If there are more than two location factors, an appraiser may choose “other” and then enter a text description of the multiple location factors. Any additional information that does not fit in the allowable space may be
reported elsewhere in the appraisal report.”
View
“Any additional information necessary to communicate an appraisal in a manner that is meaningful and not misleading may be reported elsewhere in the appraisal report.”
“Note, the UAD does not limit the number of different view factors associated with a property that may be reported within the appraisal report. If there are more than two view factors,
an appraiser may choose “other” and then enter a text description of the multiple view factors to the extent that the description fits within the space on the appraisal form. Any additional information that does not fit in the allowable space may be reported elsewhere in the appraisal report.”
Basement & Finished Rooms Below Grade
Line 1
“In some jurisdictions, the total square footage of the property improvements below grade and/or the finished square footage of the property improvements below grade may not be available to the appraiser within the normal course of business. In such cases, an appraiser may report the estimated total square footage of the property improvements below grade and the finished area below grade for the comparable properties and disclose within the appraisal report that the size is an estimate and report the source and basis for the estimate.”
Line 2
“The appraiser must report the number of each type of finished rooms in the basement on Line 2 of this data field if the finished square footage of the basement is greater than zero.”
“The appraiser must enter the numeral zero (0) if there are no rooms of a particular type. If the finished square footage of the basement is zero, no entries should be made for the basement room type counts.”
Price of Prior Sale/Transfer
“In some jurisdictions, the price of prior sale(s) or transfer(s) is not disclosed in the public records or otherwise available to the appraiser within the normal course of business. In such cases, an appraiser may leave this field blank and make a comment in the “Analysis of prior sale or transfer history of the subject property and comparable sales” field or elsewhere in the report that the price of the sale or transfer is not available. Non-monetary entries such as “unknown”, “unavailable”, etc. are not permitted in this field.”
Use the following link to view the most recent UAD FAQs from FannieMae.
https://www.efanniemae.com/sf/lqi/umdp/pdf/uadfaqs.pdf
If you have any questions or comments, please feel free to call or email.
Sincerely,
Diane Moore
Diane Moore, Education Coordinator
The Moore Group, Inc. / Moore Appraisal Education, LLC
(402) 770-8605
dlmoore@neb.rr.com
www.mooreeducation.com