CoesterVMA a nationwide appraisal Management company offers UCDP and UAD Compliance for mortgage lenders. Learn what the portal requires as well as what as a lender need to to do to become compliant with the new legislation.

1. GSEs New Appraisal Programs
Uniform Appraisal Dataset – UAD
Uniform Collateral Data Portal - UCDP
Presented by: Brian Coester and Jeff Jurin

2. Seminar Overview
Uniform Appraisal Dataset – UAD
• What is it
• Examples
• Business process
Uniform Collateral Data Portal – UCDP
• What is it
• Registration
• Players
• Business process
In-House or Outsource Solutions
• Out Source to AMC
• In-house considerations
Questions and Answers

3. The “Point” of This Seminar
There
is no
“Point”

4. When is a Period not a Period?
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.
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."

5. When is a Period not a Period?
That little period is going to get your appraisal
rejected and you will not be able to close your loan
or deliver the file.
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’.”

6. Background

7. Background
• Fannie Mae and Freddie Mac have traditionally
only kept the appraised value and appraisal date
on a property profile.
• They wanted to capture “all” the data but realized
they had to standardize the way appraisal data is
reported to do so.
• The UCDP and UAD is the standardization of
appraisal data.
• Similar to DU and Loan Prospector

8. Changes over the past year
HVCC is Codified Reasonable No BPO on
abolished Appraisal & AMC UCDP And
purchases
Independence
and now with Dodd- Customary licensing backed by UAD
Dodd-Frank Frank and AIR fees Government

9. Key Acronyms
• Mortgage Industry Standards Maintenance
MISMO Organization
FHFA • Federal Housing Finance Agency
LQI • Loan Quality Initiative
CDD • Collateral Data Delivery
UMDP • Uniform Mortgage Data Portal
UAD • Uniform Appraisal Dataset
UCDP • Uniform Collateral Data Portal
SSR • Summary Submission Report

10. Key Dates
September December
1, 2011 1, 2011
March
19, 2012

11. Key Dates (Cont’d)
• 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

12. What is Really Changing
• Forms (similar but slightly different)
• PDF Portability (First Generation Required)
• Standards in conditions, terms, and “form”
data
• Some logistics on how the appraisal is
handled

13. New Forms and Examples

14. Forms (*Indicates UAD Forms)
Uniform Residential Appraisal Report
• (Fannie Mae 1004/Freddie Mac Form 70)*
Manufactured Home Appraisal Report
• (Fannie Mae 1004C/Freddie Mac Form 70B)
Small Residential Income Property Appraisal Report
• (Fannie Mae 1025/Freddie Mac Form 72)
Individual Condominium Unit Appraisal Report
• (Fannie Mae 1073/Freddie Mac Form 465)*
Exterior-Only Individual Condo Unit Appraisal Report
• (Fannie Mae 1075/Freddie Mac Form 466)*
Exterior-Only Inspection Residential Appraisal Report
• (Fannie Mae 2055/Freddie Mac Form 2055)*

15. What Will Change for Underwriters
• Code Review instead of type review, lots of
Acronyms to learn.
• Will have to rely on technology to ensure
appraisals are “technically” correct.
• What they are comparing to will be different in
the past.
• Will be a “Pass” or “Fail” type submission to
UCDP based on the Data Set.

16. Examples
• Site and Area
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”.
Right: 23569 sf, 1.34 ac :: Wrong: 48,560 sf, 4 acres

17. Examples
• Date Formats: MM/DD/YYYY
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.
Right: 09/01/2011 :: Wrong: 9/1/2011 or 9/1/11

18. Examples
• Estimation of years: ~ Must proceed the estimation
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.
Right: ~ 1948, ~ 42 :: Wrong: 1948 (estimate), est. 42

19. Key Abbreviations
Abbreviation Full Name Fields Where Abbreviation May Appear
Ac Acres Area, Site
AdjPrk Adjacent to Park Location
AdjPwr Adjacent to Power Location
Lines
A Adverse Location & View
ArmLth Arms Length Sale Sales of Financing Concessions
ba Bathrooms (s) Basement & Finished Rooms Below
Grade
Br Bedroom Basement & Finished Rooms Below
Grade
Cash Cash Sales or Financing Concessions
CtySky City View Skyline View View
CtyStr City Street View View

20. Definitions of Condition
• 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.*
• 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 components that 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.
• 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.

21. Definitions of Condition
• 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.
• 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.
• 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.

22. Traditional Report

23. New Format

24. UAD Helper

25. UAD Helper

26. UAD Helper

27. UAD Helper

28. How it Matches Up
• C1
• C2 • New
• C3 • Renovated
• C4 • Good
• Average
• C5
• Fair/Poor
• C6

29. UAD Helper

30. UAD Helper

31. What Appraisers See

32. Forms

33. Forms (Cont’d)

34. Forms (Cont’d)

35. Forms (Cont’d)

36. Forms (Cont’d)

37. Forms (Cont’d)

38. Forms (Cont’d)

39. Delivery of the File

40. Accessing UCDP

41. Accessing UCDP
• 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
• MISMO 3.0
• 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.

42. Quality Control
• 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.

43. Cost
• 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

44. Example of PDF and XML
Conversion

45. Turning This….. To that

46. Turning This….. To that

47. Accessing UCDP Cont’d
Lenders
Lender
Designated Agent
A lender agent is an entity that a lender authorizes to perform
functions within UCDP such as uploading appraisals and
evaluating results.

48. Registration Facts
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:
• 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.
• Initiating the setup of other lender administrators in the
organization for the ongoing maintenance of UCDP access.
• Authorizing lender agents to submit appraisals on behalf
of their organization to UCDP.

49. UCDP Email

50. UCDP Home Page

51. Accessing UCDP
The 3 Types of UCDP Users:
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.
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.
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

52. Appraisal Submission and Status Updates
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:
1. 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.
2. Successful: The status will read “Successful” when the UCDP analysis is complete.
3. 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.
4. 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.

53. Appraisal Finding Report

54. Appraisal Failure Report

55. Fannie Mae, Oct. 18 Update
The UCDP includes a UAD Compliance Check
that currently results in warning messages only
and does not affect the successful submission of
appraisals to the UCDP. Receiving UAD
Compliance Check warning messages in
connection with a “Successful” status in the
UCDP does not automatically render the
appraisal report unacceptable

56. Appraisal Submission and Status Updates
Overrides, From Unsuccessful to Successful
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.
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:
1) The UCDP automatically approves an override.
2) The administrator can manually request an override, if available.
3) The Admin obtains and uploads a corrected appraisal data file.

57. Appraisal Submission and Status Updates
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.
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).

58. SSR

59. SSR - Storage
• SSR will have to be stored in the loan file
with the entire package.
• If you ever intend to sell the loan the SSR
should be received before closing.
• Some LOS will have the ability to store the
file.
• This is the “golden ticket” for the appraisal

60. Final Thoughts
UAD
• Accept the changes they have
already made
• The train has left the station
Lenders
• Solve the submission process UPFRONT
i.e. receive the appraisal in XML, MISMO
format from get go
• Run SSR upfront from get go

61. Links, Tutorials, Webinars
https://www.efanniemae.com/sf/technology/co
mmitloandel/ucdp/index.jsp
– UCDP Overview
– UCDP FAQs
– Fannie Mae Monthly UMDP Yardstick

62. Solutions

63. Our Process

64. Outsourcing
• Some AMC’s will be ready for the UCDP and UAD Changes,
most will not.
• Trust but verify, they can not use a “manual review” for this
without charging much more.
• Want to know their “automated” review rules.
• If they have their own software you need to know where they
are getting their UCDP software reader from. (not doing it
themselves)
• Your going to set them up as a “Lender Agent”
• 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.

65. In-House
• 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”

66. ABOUT COESTER

67. Company History
PAST PRESENT
• National Service Provider providing
• Founded in 1970 by Timothy valuation services in US, Puerto Rico
D. Coester. and Caribbean.
• Was trained and mentored by • Leading Provider of Appraisals,
industry legends David Lenhoff BPO’s, Reviews and Repurchase
and Donald Boucher both Rebuttals.
former President’s of the • First to introduce industry smart
Appraisal Institute. phone application and
salesforce.com cloud based
• Highly Respected consulting platform
style valuations.

68. Overview of Products and Services
• Residential and Commercial • Appraisal Management
Valuations Service
• Broker Price Opinion’s – Compliant with Dodd-
• Automated Valuation Model Frank and industry
(AVM) regulations
• Loan Repurchase Rebuttals – Licensed as AMC in
for Credit and Appraisal applicable states
Related – UCDP Review and
• Due Diligence on loan pools Delivery
• REO Valuation’s

69. Account Management
• All accounts are managed are assigned
to a dedicated account manager.
• Order desk which assigns, collects
payment and ensure order is placed
with proper appraiser .
• Account Managers the manage the file
from receipt to final completion and
are dedicated by client.
• Quality Control department handles all
QC requests and does
reviews, reconsiderations and
revisions.
• We have a team of specialist on staff
and under contact to at a moment
notice can handle almost every issue.

70. Technology

71. Technology

72. Full Service and Self Service

73. Full Service and Self Service

74. Full Service and Self Service

75. Quality Control Process
Initial Error Review – Vendor Upload
•UAD Error Review and USPAP 1,600 Point Auto Review
•Automated Check for Basic Information Errors
Manual Review For Quality – Staff Appraiser
•Staff appraiser reviews report line by line to ensure quality.
•Focus on comments, adjustments, sales info and lender comments.
Supplemental Info Review – AVM’s, MLS
•Reviewer pulls sales, listings, MLS data or runs AVM to verify value.
•Detailed notes are taken and submitted with the appraisal report to the client.
Guarantee of Value – Appraisal Inspector
•Additional Licensed staff or fee appraiser contacted to review file
•Information pulled to confirm then appraisal is conditioned before submission
•Not required for every file

76. Supplemental Review-Reviewers Notes

77. Supplemental Review-Reviewers Notes

78. Supplemental Review-Reviewers Notes

79. Supplemental Review-Reviewers Notes

80. Supplemental Review-Reviewers Notes

81. Q&A
Questions?

82. Thank You
Thank you for attending
Brian C. Coester
Bcoester@coesterappraisals.com
Jeff Jurin
JJurin@coesterappraisals.com
www.coesterappraisals.com