VA Home Loan News | UNIFORM APPRAISAL DATASET (UAD)

Veterans Benefits Administration Circular 26-11-14
Department of Veterans Affairs September 26, 2011
Washington, DC 20420
UNIFORM APPRAISAL DATASET (UAD)
1. Purpose. The purpose of this circular is to announce the adoption of Uniform Appraisal
Dataset (UAD) compliant appraisal reports for Department of Veterans Affairs (VA) Loan
Guaranty Program purposes.
2. Effective Date. Effective immediately, VA fee appraisers may, as an option, use UAD
compliant versions of the forms. Effective January 1, 2012, VA appraisal reports utilizing
Fannie Mae Forms 1004, 1073, 1075 or 2055 must be UAD-compliant.
3. Background
a. To improve the quality and consistency of appraisal data on loans delivered to the
Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac, at the direction of the
Federal Housing Finance Agency (FHFA), have developed the UAD. The UAD defines all
fields required for an appraisal submission for specific appraisal forms and standardizes
definitions and response options for a key subset of data fields. The UAD will apply to the
following most commonly used residential appraisal report forms (Fannie Mae / Freddie Mac
form numbers listed below), which are also approved for VA appraisal use:
(1) Uniform Residential Appraisal Report – 1004/70
(2) Individual Condominium Unit Appraisal Report – 1073/465
(3) Exterior-Only Inspection Individual Condominium Appraisal Report – 1075/466
(4) Exterior-Only Inspection Residential Appraisal Report – 2055/2055
b. Appraisal software vendors have incorporated the UAD requirements into their form
software that is currently available on an industry-wide basis. Although only appraisal reports
for conventional mortgage loans sold to Fannie Mae or Freddie Mac are required to be
completed in compliance with the UAD at this time, it appears that UAD will become an
industry standard, since UAD has been adopted by FHA.
c. To prepare for the adoption of UAD by VA, Fee Appraisers should become familiar with
the modified appraisal forms, including the UAD field specific requirements detailed in
Appendix D of the Uniform Mortgage Data Program, and which is posted on the web sites of
Fannie Mae and Freddie Mac at https://www.efanniemae.com/sf/lqi/umdp/uad/index.jsp.
(LOCAL REPRODUCTION AUTHORIZED)
4. Details. VA is moving to require UAD-compliant appraisal reports to remain in step with
changes in appraisal reporting, to support consistency in appraisal reports, and to ensure the
acceptability of VA appraisal reports within the industry. Most aspects of this change to UAD
require only clarification of existing policy or procedure; however, there are three actual changes
to standing policy or procedures that must be noted. Reference Section 6 of this Circular for
those changes to policy and procedure.
5. Points of clarification on VA appraisals in relation to UAD requirements
a. VA Fee Appraisers will continue to complete VA appraisal reports in accordance with the
requirements of the VA Lender’s Handbook (VA Pamphlet 26-7, Revised) and instruction and
guidelines from VA. Fee Appraisers are reminded that completion of the data fields of the
appraisal report does not relieve them of the duty to provide adequate explanations in the
addendum to provide clarity and justification.
b. Appraisal reports will continue to be quality-reviewed for compliance with VA
requirements.
c. While the UAD may allow for the use of unsettled sales in the sales comparison grid, VA
requires that only settled sales be used.
d. UAD requires appraisers to provide specific information regarding remodeling in the past
15 years; VA expects Fee Appraisers to recognize and describe remodeling or updating and to
make appropriate adjustments. On VA appraisals, Fee Appraisers should also report UAD
information concerning the remodeling if it is available in the “normal course of business”
within VA timeliness requirements for completion of the appraisal.
6. Changes to VA policy and procedures for VA appraisals in relation to UAD requirements.
To allow for acceptance of appraisal reports in compliance with UAD, VA policy regarding
entries in appraisal report data fields which appear to conflict with UAD are changed as follows:
a. The requirement that only the “Department of Veterans Affairs” be entered in the
Lender/Client field of the appraisal form is rescinded. Instead, the lender’s name will be entered
in this field, as well as the “Department of Veterans Affairs” as the Client of this field.
b. The requirement that “Intended User: Any VA Approved Lender” be entered in the Address
field for the lender is rescinded. Instead, the address of the lender will now be entered in this
field.
c. The requirement that “Any Qualified Veteran” be entered in the Borrower field of the
appraisal report is rescinded. The name of the Veteran purchaser will be entered as the borrower
in this field.
7. Rescission: This circular is rescinded October 1, 2014.
By Direction of the Under Secretary for Benefits
Michael J. Frueh
Acting Director
Loan Guaranty Service