What’s Happening With the New Forms?
50 23 17 1 2 2
Many of you are aware that the GSE’s are in the process of evaluating the entire appraisal process, including the existing ‘forms.’
This initiative was announced in 2nd Qtr 2018, and reps from both FNMA and FrMac made presentations at various appraiser conferences and other places through the year to gather info and suggestions from all appraisal forms users.
This new initiative was never intended to be an immediate make-over; instead, the GSE’s said it was to be an approximate 3 year process.
In December 2018, the GSE’s released their Executive Summary (see PDF below) describing what’s been accomplished so far.
According to this document, the highest objectives include making reported data easier to understand, incorporate data updates easier into the process and build-in flexibility, and REDESIGN the outdated forms we currently use.
They have also documented what they call “pain points” that are the ‘sticky wickets’ in this revision process. Read those on the PDF. One aspect I applaud is the admission that the present forms do not align well with appraisers’ USPAP requirements. (Forms never have complied well, because they were used for years before USPAP was mandated, and updated since a few times with little concern about USPAP.)
I’ve been reading various comments on forums about the new forms and what appraisers hope they might look like, or how they might function. These comments presently are just conjecture, as no definitive information has been distributed yet. The GSE’s are not providing any details, and probably won’t release any until late in 2019 or into 2020.
Bringing the ‘forms’ and the appraisal process into modern current and future functionality is not easy. Appraisers need to ‘cool their jets’ and not get all worked up about this until further details are released.
Actual implementation of new forms and new processes won’t happen until late in 2020, or perhaps into 2021.
But I will make one prediction: because the GSE’s (and other players) purchase (or guarantee) loans on various kinds of properties, the remaining non-UAD forms will have their reporting details incorporated into UAD.