Uniform Appraisal Dataset. Give 'em what they want.

Uniform Appraisal Dataset (UAD) is what Fannie Mae/Freddie Mac use to standardize appraisal data. Effective six days ago, some not so minor changes were added to the UAD.  A cynical thought comes to mind, but I'll supress it for now because, there might be some help for the process with some of the changes. Let's look at the new rules:

1. Information that is required but not available on the local MLS will have to be gotten from Realtors and lenders who are not involved in the transaction. For example: for compiling comparable property data, the View Factor and Financial Assistance are not on the MLS. Same for Quality of Construction.  Expect this to slow the turn around time.
2. Finished rooms below grade: This could be favorable. On the new appraisal form, the appraiser will include  BEDROOMs. On the previous form, a room in the lower level used as a bedroom was not counted as a bedroom, but as a room.
3. Condition of the property will now be rated. A big help for homes that are in significantly great condition compared to the house thats similar in size, amenities, area, but in a sorry state. Of course that sword cuts both ways.
4. Quality ratings are new and serve a purpose. Let's face it, some homes in subdivisions built in the the last 10 years are of incredible quality compared to others of greater size. Also, we all know great quality when we see it, but we can't always see it. Just because the brand of sink is well known, doesn't mean the windows don't leak, and the house doesn't suck energy. I'll be interested to see the disputes over this rating.

In bold letters the memo attached to Standardized Exhibits reads: The underwriter is still responsible to determine that there is an acceptable appraisal with value support.

My first impression is that we Realtors are going to want to attach documents to address these UAD changes. The better the information the appraiser has to put into the report, the better information the underwriter has to make their opinion decision. In the past a furnace was just a furnace, and a shower was just a shower. Now they may be the difference between making the value and not.