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UAD Changes

Fannie Mae and Freddie Mac (GSEs) have NOT changed the Uniform Appraisal Dataset implementation date.  September 1, 2011 remains the effective date for appraisal reports to be completed in compliance with the UAD for conventional mortgages sold to the GSEs.

FHA's effective date for of the adoption of the UAD and two of the UAD compliant appraisal reporting forms is January 1, 2012.  More information is available in Mortgagee Letter 2011-30 (see attached PDF or go to: FHA Mortgagee Letters

Please note the following for further information on the UAD:

Uniform Appraisal Dataset

For appraisals with an effective date on or after September 1, 2011, Fannie Mae and Freddie Mac will require use of the Uniform Appraisal Dataset (UAD) reporting format for those appraisals completed on the following Fannie Mae/Freddie Mac forms:

- - Uniform Residential Appraisal Report  (Form 1004/70); 

- - Exterior-Only Inspection Residential Appraisal Report (Form 2055/2055); 

- - Individual Condominium Unit Appraisal Report (Form 1073/465) and;

- - Exterior-Only Inspection Individual Condominium Unit Appraisal Report (Form 1075/466)

Use of the new UAD will not affect the requirements of USPAP Standards Rules 1 and 2 (development and reporting of a real property appraisal).  Standard 2 specifies the minimum standards for the content of an appraisal report, but does not dictate any specific format for reporting the required content.  UAD is only a format for reporting data within the above identified appraisal forms for Fannie Mae and Freddie Mac, the intended users of these reports.  UAD does not replace the minimum standards for reporting content identified within Standard 2. 

Use of the new UAD reporting format is a client condition, therefore, specific questions regarding UAD reporting criteria should be directed to Fannie Mae and Freddie Mac (links to Fannie Mae and Freddie Mac can be found at the end of this document). 

This document is being provided to assist licensed appraisers in understanding how to remain in compliance with USPAP when utilizing the new UAD reporting format.   It is important to remember that each appraisal report completed utilizing the new UAD format must always meet the minimum standards set forth in USPAP.

UAD and USPAP - Some Commonly Asked Questions 

UAD and the Ethics Rule:

Question: The Conduct Section of the Ethics Rule states:  "An appraiser must not use or communicate a report that is known by the appraiser to be misleading or fraudulent."  If the UAD report is not understood by the reader of the report, have I delivered a misleading report?

Answer:  No.  Comments to Standard Rule 2-1(b) state, in part:  "The appraiser must provide sufficient information to enable the client and intended users to understand the rationale for the opinions and conclusions..."  The UAD reporting format is a client assignment condition, therefore, by implication, the client and intended user(s) will understand the report.  The UAD does not limit the information and or data that appraisers can include in the addenda to an appraisal report.  Therefore, to assist any other potential readers in understanding the rationale for the opinions and conclusions in the report (such as those parties specified in Certification Item 23), UAD definitions and abbreviations from the Field-Specific Standardization Requirements can be included as an addendum to the report.  (Reference: Fannie Mae Uniform Appraisal Data (UAD) Frequently Asked Questions - FAQs, Q10, Q20, and Q23).

UAD and the Competency Rule:

Question: The Competency Rule states:  "The appraiser must determine, prior to accepting an assignment, that he or she can perform the assignment competently."  How can I determine if I am competent to complete a UAD assignment?

Answer:   The expectation will be that the appraiser has acquired the necessary training and knowledge required for proper compliance with UAD.  The appraiser must not engage an assignment with UAD specified as an assignment condition if they lack the required knowledge.  The appraiser must understand the assignment conditions as issued by the client prior to accepting an assignment (reference the Scope of Work Rule in USPAP).  If the assignment conditions are not fully understood prior to accepting the assignment, the appraiser will not be able to properly identify the problem to be addressed, will not be considered competent to complete the assignment, and will not be in compliance with USPAP.

UAD and the Scope of Work Rule:

Question:        If an appraisal is not ordered as a UAD compliant report, is completed and transmitted to the client, and the client subsequently requests a UAD compliant report, does that constitute a new assignment?

Answer:  Yes.  The assignment conditions have changed, and therefore the problem identification criteria for the appraisal have changed.  It is important to remember that an appraiser must determine the assignment conditions prior to accepting the appraisal assignment.  Industry wide, it is understood that effective September 1, 2011, reports completed for Fannie Mae and Freddie Mac must be UAD compliant.  Therefore, as with all appraisal assignments, the appraiser is responsible for clarifying with the ordering party and/or client, the assignment conditions applicable to the appraisal, prior to accepting the assignment.

Question:        Aside from the change in the way the appraisal information is being reported, is there any new information required, and will providing that additional information become a requirement of USPAP?

Answer:   Yes.  There are four additional data points requested for UAD compliant reports and several new definitions that will become a USPAP requirement under the Problem Identification section of the Scope of Work Rule as they become assignment conditions.  The new information being requested under UAD consists of the following:

- - Days on Market for the subject property and each comparable property;

- - Specifically defined Condition and Quality Ratings;

- - Updating or remodeling to the kitchen and bathroom(s) for the subject property, and;

- - Sale type for the subject property and each comparable property. 

The new definitions for UAD can be found within the Fannie Mae and Freddie Mac Uniform Appraisal Dataset Specification Appendix D:  "Field-Specific Standardization Requirements" (links to Fannie Mae and Freddie Mac can be found at the end of this document).

UAD and Standard Rule 2-2(b):

Question:        Will USPAP appraisal reporting requirements be affected by UAD?

Answer:  No.  All four appraisal forms scheduled for inclusion in the UAD reporting format changeover fall under Standard Rule 2-2(b).  The minimum USPAP reporting requirements can still be met under the UAD reporting format as addenda are not only allowed, but in certain cases, required, by Fannie Mae, Freddie Mac and USPAP.  

Resources for USPAP and UAD:


Fannie Mae UAD

Freddie Mac UAD