Appraisal Forms Redesign
In 2018, the GSEs began working on ‘mortgage lending appraisal forms redesign’, a process they said would take approximately 3 years to accomplish. The effort is currently underway, however they have not announced exactly when the process will be completed, or when the new forms will take effect.
Attached is a PDF of their FAQs through June 2020 which you may want to peruse, just so you become more aware of “what’s coming down the track” not too long from now.
From my quick read of this FAQ document, key items include:
- GSE forms are not to be used for NON-MORTGAGE appraisal assignments; they are designed specifically for lending purposes (this applies ‘today’ also.)
- In their own words, the current forms will “.be retired and replaced with a data-driven, flexible, dynamic structure for appraisal reporting…”
- Redesigned forms will have more internal comment spaces and other designs to allow appraisers to include more info on the basic form, rather than having to rely on a multi-page Addendum. This is related to how UAD/.xml works, which does not transmit Addendum info fully, if at all.
- Redesigned forms will incorporate on-board ability to calculate adjustments more easily.
- The MC Form will be eliminated, but the redesigned forms will incorporate additional entry fields and comment sections for the appraiser to annotate market info more completely than the current forms do.
- The GSE’s intention is to provide training information to the industry prior to the implementation date of the new forms.
If you want to know more about the appraisal forms redesign initiative, use this link.
10. Will the Sales Comparison Appraisal Approach (SCA) grid change?
Yes. The new SCA grid, like the new appraisal report, will be data driven. The support for adjustments will reside in the grid, allowing the reader of the report to understand the adjustments without searching within the text.
11. How will the GSEs collect the updated data?
The GSEs will continue to use UCDP. Adopting an upgraded UAD Specification that reflects the latest MISMO Reference Model will require updates to the UCDP.
- The Unbiased Reality of Census Tract Data Dump… Open Letter to FHFA - August 15, 2023
- Isn’t that Just PAVEY! PAVE Response and Marcia Fudge - August 8, 2023
- ‘Pesky’ Words. Keeping Appraisers out of Language Purgatory - July 26, 2023