Adapting to the new appraisal forms; realize the benefits of a more efficient and accurate valuation process
The appraisal industry is undergoing a significant but much-needed transformation with appraisal modernization.
Appraisal Modernization aims to improve the quality, consistency, and efficiency of appraisals as well as introducing data standardization throughout the property valuation process by introducing new technologies, data sources, and standards. This industrywide effort is led by the government-sponsored enterprises (GSEs), known as Fannie Mae and Freddie Mac, at the direction of the Federal Housing Finance Authority (FHFA).
This transformation is primarily comprised of two key components.
- Expanded Uniform Appraisal Dataset (UAD): This enables appraisals to cover and support valuations for all property types.
- The new forms redesign: This will replace the current UAD forms with new UAD appraisal forms that provide a more flexible, dynamic, and data-driven experience.
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What Is a UAD?
The Uniform Appraisal Dataset or the UAD was developed by the GSEs and is “all fields required for an appraisal submission for specific appraisal forms and standardizes definitions and responses for a key subset of fields.”
It standardizes certain data points to support consistent appraisal reporting. As part of the modernization effort, Fannie Mae and Freddie Mac will issue revised versions of familiar forms, including a new 1004 appraisal form and a revision to the URAR appraisal form.
Overall, this new appraisal ordering process moves the industry away from the current form-centric fulfillment process to a more standardized, data-centric model. This model will allow businesses to accomplish the following:
- Design a more streamlined and efficient appraisal process that drives increased accuracy, efficiencies, and borrower satisfaction.
- Establish a standardized and more consistent valuation process that more accurately reflects the current market conditions and trends.
- Provide greater transparency within appraisal reporting, powering improved compliance for regulatory and investor expectations.
- Support a more flexible and adaptable appraisal workflow to better enable the use of alternative valuation methods and data sources.
Adapting to New UAD Appraisal Forms
Ask any lender, integration partner, or provider and they’ll agree, preparing for and adjusting to regulatory changes is no small task.
However, adapting to regulatory changes does not need to be a heavy lift. Finding partners like CoreLogic that understand the impacts of the UAD and can provide training, education, and best practice guidance is an invaluable first step when adapting to major industry changes.
At the same time, any current partnerships, including with data providers, need to be evaluated to ensure that enhancements are being made to appraisal platforms and tools to provide compatibility and functional alignment with the new UAD format and the GSE changes.
At CoreLogic, experts have been developing and enhancing the Order Management and Valuation Solutions ecosystems to verify that they are closely aligned with the expanded UAD and new form redesign.
In addition to verifying compliance, valuable partnerships will also focus on opportunities for innovation that these changes present. Whether it’s AVMs or it’s AI-driven appraisal imagery, a good data provider works to improve detection, efficiency, and accuracy all while certifying compliance with federal requirements.
CoreLogic Appraisals: Redefining Success
At CoreLogic, network, scale, connectivity, and technology help clients deliver smarter, faster, and more human-centric experiences. With this comes a commitment to helping clients and the industry prepare for changes in standards and leveraging the opportunities they present. Part of that commitment includes closely collaborating with the GSEs and other leading industry stakeholders, understanding new requirements, assessing the impact on the industry, and providing influential feedback and input. As with any industry regulatory change, CoreLogic sits at the front, leading support for change and innovation. From collaborating on the key UAD changes to working with lenders and clients on appraisal fulfillment impacts, CoreLogic has been active in understanding how this initiative will ultimately drive change.
As the industry moves closer toward preparing for appraisal modernization, CoreLogic remains committed to ensuring that its clients and the industry at large are ready to embrace these benefits and changes to technology, processes, and workflows.
To understand how the Appraisal Modernization initiative impacts your business, speak with a CoreLogic expert today. Contact us to learn more about how CoreLogic can help you navigate Appraisal Modernization and drive improved efficiencies for your business.
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