Chapter 5 The uniform appraisal dataset Flashcards
The requirements of the UAD apply to appraisals for single-family residential mortgages that are being sold to
Fannie Mae or Freddie Mac on the secondary mortgage market, as well as FHA and VA loans.
It also goes without saying that appraisals for non-mortgage lending intended uses need not comply with the UAD. Examples of non-mortgage lending intended uses include:
Eminent domain/condemnation Estates/inheritance tax Conservation easements Ad valorem tax assessment Divorce/other litigation Purchase/sell decisions Trusts
UMDP stands for: Uniform Mortgage Delivery Platform Uniform Mortgage Data Program Unfunded Mandate Dataset Problem Unilateral Mortgage Discount Program
Uniform Mortgage Data program
Which entities are referred to as the GSEs?
The Appraisal Foundation and the Appraisal Subcommittee
The FDIC and FRB
State appraisal enforcement agencies
Fannie Mae and Freddie Mac
Fannie Mae and Freddie Mac
Which statement is FALSE regarding Fannie Mae?
It was established in the 1930s as a federal government agency.
It purchases mortgage loans from originating lenders.
It is currently a federal government agency.
It packages mortgages into securities, and sells them.
It is currently a federal government agency
According to the Fannie Mae/Freddie Mac website document titled “Uniform Appraisal Dataset (UAD) Overview”, the UAD is intended to:
“Provide lenders with greater confidence in loan quality by offering enhanced appraisal data quality and integrity regarding the collateral value of their loans.
Create efficiency and consistency in appraisal reviews by offering appraisers and lenders an improved view and understanding of the GSE appraisal data requirements.
Support processes to manage and mitigate valuation risk by resolving inconsistencies with appraisal data, including formatting, terminology, and use of descriptions.”
UAD standardization is intended to support consistent appraisal reporting throughout the country. According to the UAD Overview document, the GSEs have noted “vague or disparate data currently included on some appraisal reports, such as:
Variations in formatting numbers, dates and measures
Inconsistent terminology for identical information (such as waterfront vs. oceanfront)
Inconsistent use of descriptions (for example, quality of construction is sometimes reported in absolute terms such as ‘brick’ and sometimes in relative terms, such as ‘average’)”
Because of the inconsistencies noted in appraisal reports, the UAD provides for:
“Standardized formats for fields that include dates, values, etc.
Allowable values from a list of choices to be provided for certain fields
Standardized abbreviations to allow more information to fit on the printed appraisal forms
Standardized ratings and definitions for the ‘condition’ and ‘quality’ of the property and ‘Updated/Remodeled’ status”
In order to standardize data in appraisal reports, the UAD requires:
Significant revisions to GSE appraisal report forms
All appraisal reports must be submitted by the appraiser directly to the GSEs
Standardized abbreviations to allow more information to fit on the forms
All appraisals must include an interior inspection
standardized abbreviations to allow more information to fit on the forms
An appraisal on which type of property, completed for a Fannie Mae lender, would NOT be subject to the requirements of the UAD?
A single-family home with an accessory unit
A unit in a cooperative project
A unit in a planned unit development (PUD)
A condominium unit
A unit in a cooperative project
The UAD applies only to single-family dwellings, single-family dwellings with an accessory unit, units in a planned unit development (PUD), or condominium units
An appraisal on which type of property, completed for a Freddie Mac lender, would NOT be subject to the requirements of the UAD?
A duplex
A condominium unit
A unit in a planned unit development (PUD)
A single-family dwelling with an accessory unit
a duplex
The UAD applies only to single-family dwellings, single-family dwellings with an accessory unit, units in a planned unit development (PUD), or condominium units
As part of the implementation of the Uniform Appraisal Dataset (UAD), Fannie Mae and Freddie Mac changed the layout and format of several appraisal report forms.
True
False
False
The Uniform Appraisal Dataset changed _________.
Input requirements for certain fields on appraisal report forms
The appearance of the 1004, 1073, 1075, and 2055 forms
The way FHA appraisals were developed and reported
Nothing
input requirements for certain fields on appraisal report forms
(known as “Field-Specific Standardization Requirements”) establishes the UAD requirements for all of the required fields on the 1004, 2055, 1073, and 1075 forms
Appendix D
Assumptions, extraordinary assumptions, hypothetical conditions, laws and regulations, jurisdictional exceptions, and other conditions that affect the scope of work.
Assignment conditions
If a particular form field does not have enough room for the appraiser to insert the information that is necessary to facilitate intended user understanding, the appraiser must include the necessary information in an
addendum
Appendix D lists the data entry protocols of the UAD as either requirements or instructions. From Appendix D:
“For form fields labeled as a requirement, UCDP will validate the data and will return an error message if the data does not conform to the defined reporting format. For form fields labeled as an instruction, the UCDP will not validate the reporting format but the data must be transmitted if populated by the appraiser.”
Under USPAP, Fannie Mae and Freddie Mac appraisal requirements would be considered: A recertification of value Jurisdictional exceptions Unnecessary Assignment conditions
assignment conditions
Robert receives an assignment to appraise a single-family home for a conventional loan for a lender who sells loans to Freddie Mac. Compliance with the requirements of the UAD would be: Optional at the lender's discretion Suggested but not required An assignment condition Optional at the appraiser's discretion
an assignment condition
“The appraiser should enter a neighborhood name” is an example of:
A requirement
An instruction
Neither of these
an instruction
It is ________ that the appraiser enter an address that conforms to the United States Postal Service address standards, as found in USPS Publication 28.
required
Pub 28 is somewhat lengthy, and it is not necessary for appraisers to read and understand the entire document. Specifically, the UAD requires the address to contain:
Street number
Street name, including directional indicator, suffix, or prefix
City
USPS two-letter state abbreviation (for example: CA, not Cal)
5-digit ZIP code or ZIP+4
For condominium unit appraisals reported on the 1073 and 1075 forms, the appraiser is also required to enter the
unit number
For all UAD report types, the appraiser is required to indicate whether the subject property is occupied by the
owner or the tenant
If the transaction is indicated as a _______, this will trigger the requirement that the appraiser must complete the subject property contract for sale section of the report.
purchase
Marian is appraising a single-family home where the property tax year spans 2019 and 2020. In her UAD report, what should she put under "Tax Year"? 2019 2021 2017 19-20
2019
Under the requirements for UAD, if an appraiser determines that property values in the neighborhood are “stable to increasing”, she may check both the “stable” and “increasing” boxes in the neighborhood section of the URAR form.
True
False
false,
just one
If the Assignment Type is indicated as a purchase transaction, the appraiser is required to report on sales concessions or financial assistance.
True
False
true
Which of these is a valid architectural style, under the UAD? 2 stories Brick Rambler All of these
rambler
In an appraisal report prepared under the UAD, how is a three-quarter bathroom to be considered in the room count?
As a full bathroom
As a half bathroom
It is not to be counted
as a full bathroom
Which of these is a valid architectural style, according to the requirements of the UAD? Farmhouse Brick Typical 2 stories
farmhouse
Under the requirements of UAD, which of these would be an acceptable indication of a comparable sale's proximity to the subject? 2 blocks east 6 bl SE 1.25 miles 0.55 miles SE
0.55 miles SE
The subject property has a two-car attached garage. Comp 1 also has a two-car attached garage. What should the appraiser enter in the sales comparison grid in the adjustment field for this item? 0 No adj. Same The field should be left blank
the field should be left blank
Which of these would be the MOST appropriate entry in the location section of the sales comparison grid in a UAD-compliant appraisal report? A; BsyRd B; AdjPwr Good A; BsyRd; AdjPwr; Ind
A; Bsyrd
As per the UAD, what information is required to be inserted in the “Name” field, in the “LENDER/CLIENT” section on page 6 of the 1004 form?
The name of the person who emailed the appraisal order to the appraiser
The appraiser’s full name as it appears on the ASC registry
The AMC name, if applicable
The lender’s initials
The AMC name, if applicable
If the Assignment Type is indicated as a purchase transaction, the appraiser is required to report on sales concessions or financial assistance.
True
False
true
Which is NOT an acceptable way to outline the subject’s neighborhood boundaries in a UAD-compliant appraisal report?
By referencing boundaries such as streets and municipal limits
By using “North”, “South”, “East”, and “West”
By referencing a map in an addendum
By referencing waterways or other natural boundaries
By referencing a map in an addendum
Which of these statements is TRUE regarding GSE requirements and USPAP?
GSEs require USPAP compliance.
If appraisers simply follow GSE requirements, they will automatically be in compliance with USPAP.
GSEs require appraisals to conform to their specific requirements, and do not care about USPAP compliance.
The UAD and its requirements are intended to replace USPAP.
GSEs require USPAP compliance
A comparable property closed (settled) on June 5, 2020. Under the requirements of UAD, what would be the appropriate format to enter the settlement date in the sales comparison grid? 06/05/2020 06/05/20 06/20 Jun 20
06/20
The UAD requires an appraiser to rate the subject property's overall view as: Good, Average, or Poor G, S, or U N, B, or A A, B, or C
N, B, or A
If a home has three full bathrooms and two half-bathrooms above grade, how must the appraiser indicate the bathroom count according to the UAD? 3.75 3+2 4 3.2
3.2
Appraisers need to determine whether certain UAD data entry protocols are requirements or instructions. What is the operative word that refers to an instruction? Can Must Should Alas
should
Which UMDP sub-initiative is the most applicable and important for appraisers?
UAD
UCDP
ULDD
UAD
Which party is ultimately responsible for compliance with Fannie Mae and Freddie Mac policies and initiatives? The seller The lender HUD The borrower
The lender
Under the requirements of UAD, which of these would be an acceptable indication of a comparable sale's proximity to the subject? 2 blocks east 6 bl SE 1.25 miles 0.55 miles SE
0.55 miles SE
In an appraisal report prepared under the UAD, how is a three-quarter bathroom to be considered in the room count? As a full bathroom As a half bathroom It is not to be counted None of the answers shown
as a full bathroom
An appraiser estimates that the subject home was built in 1930, but is unable to verify this. How must the appraiser indicate this in the "Year Built" section of the 1004 form? 1930 M/L ~1930 1930 est est 1930
~1930
Appraisals reported on which Fannie Mae forms will require compliance with the requirements of the Uniform Appraisal Dataset? 1004, 1004C, 1004D, 1004MC 1004, 2055, 1073, 1075 1004, 2055, 1025, 2000 1040, 1073, 1075, 2065
1004, 2055, 1073, 1075
If an MLS is used as a source for subject property offering data, the appraiser must enter:
The abbreviated name of the listing real estate agency and the complete MLS listing number
The name and contact number for the listing agent
The abbreviated MLS name and the MLS listing number or identifier
The MLS number followed by the pound sign (#)
the abbreviated MLS name and the MLS listing number or identifier
