Freddie Mac announced April 29 that beginning June 30, the Uniform Collateral Data Portal (UCDP) will deliver new proprietary feedback messages for appraisals submitted to Freddie Mac and also will return a proprietary hard-stop code that will not allow for users to override. Freddie announced that the new proprietary messages are aligned with the government-sponsored enterprise’s effort to provide improved appraisal quality feedback.
Currently, if lenders receive hard-stop code “FRE800,” Freddie Mac proprietary messages automatically are overridden, and the code does not prevent lenders from receiving a “successful” status when the appraisal is submitted in the UCDP. Beginning June 30, when the following three Freddie Mac proprietary fatal edits are activated on all UAD forms, lenders will receive a new hard-stop code, “FRE700,” which will prevent them from receiving a “successful” submission status. These fatal edits must be addressed, and an updated appraisal must be submitted to the UCDP before a “successful” status can be received.
- FRE1086 Signature Date Check: Triggers if the signature date of the appraisal is before the effective date of the appraisal.
- FRE1087 Appraiser Name Check: Triggers if the appraiser’s name is missing from the appraisal.
- FRE1040 Subject Legal Description: Triggers when the legal description is missing.
Freddie also announced that four new feedback messages will be returned on all UAD forms submitted to UCDP to complement the “Single-Family Seller/Servicer Guide” requirements related to appraisal eligibility. The presence of these feedback messages may indicate that the appraisal and associated mortgage are not eligible for delivery to Freddie Mac. These feedback messages will be implemented as warning messages and will not prevent lenders from receiving a “successful” status.
- FRE1093 Condominium Zoning: Triggers if the Site Zoning Compliance Type is Legal Nonconforming and the Site Zoning Permit Rebuild to Current Density Indicator is “no.”
- FRE1095 Subject Highest and Best Use: Triggers if the present use of the subject property does not represent the highest and best use of the property.
- FRE1094 Sales Contract Review: Triggers if the contract of sale was not analyzed by the appraiser on a purchase transaction.
- FRE1092 Condominium Hotel Project: Triggers if the condo project name appears to be a condominium hotel.
Finally, new appraisal quality feedback messages primarily will focus on overall completeness of UAD appraisal forms and will be initially activated only for the Uniform Residential Appraisal Report(Freddie Mac Form 70). Freddie Mac will provide sufficient notice as these messages are activated for additional and applicable UAD forms. Although Freddie said it anticipates these messages will be returned infrequently, appraisals with missing data occasionally get through. These feedback messages serve to assist and build on the quality control checks lenders currently have in place. The messages also will be implemented as warning messages and will not prevent lenders from receiving a “successful” status.