maintaining business as usual under new gse appraisal
TRANSCRIPT
Maintaining Business as Usual Under New GSE Appraisal Delivery Policies
Overview of 2013 UCDP/UAD Updates and FNC Solutions for Clients ~ January 2013
J a n u a r y 2 3 , 2 0 1 3
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Conference Web Page
• Today’s PowerPoint
• Audio
• Questions
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Speakers
• Christian Leask
• UCDP Product Manager, FNC • [email protected]
• Mike Mitchell
• Chief Strategy Officer, FNC • [email protected]
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Client and Platform-Wide Changes in 2013
• Introduction of Fannie Mae proprietary messages to UCDP feedback
• Conversion of certain existing UAD edits from Warning to Fatal Exception
• Announcement regarding future changes to UCDP Portal Data Submission Requirements
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FNC Gateway
FNC Confidential
Fannie Mae Proprietary Warnings
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Fannie Mae Proprietary Messages
Proprietary Fannie Mae appraisal messages will be activated in the Uniform Collateral Data Portal® (UCDP®) beginning Jan. 28, 2013. (UCDP User Guide for Fannie Mae Messaging)
• What they are • What you will need to do • How FNC will help you prepare
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What are Fannie Mae Proprietary Messages?
• Fannie Mae-specific feedback in the form of warnings • A lender could choose to ignore this feedback. • Proprietary – Fannie Mae is not releasing thresholds to
lenders or direct integrators.
• Warnings only – for the meantime.
FNMA ID Message Text GAAR® UAD Rule(s)
FNM0004 HOA fee relative to appraised value appears excessive
???
FNM0005 The number of days on market appears excessive. ???
FNM0083 The sales contract was not analyzed. FNC-C-CONT-003-00
FNM0085 Less than three settled sales were used as comparables.
FNC-C-SCA-099-02
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What are Fannie Mae Proprietary Messages?
• Tolerances are intentionally wide and will change.
• Fannie Mae recommends appraisal review if 10-15 messages fire.
• There is no official “critical” list despite industry buzz.
• Contact your account team for a list of GAAR UAD rules that govern these messages where applicable.
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Fannie Mae Proprietary Messages – Action?
What will you need to do? Nothing…yet. It is OK to “wait and see,” but we encourage you to begin to understand the operational impact of these messages by using the UCDP Warnings Summary report in your CMS.
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Fannie Mae Proprietary Messages – FNC Solutions
How we will help you prepare. FNC is providing feedback at two distinct points as well as a workflow solution.
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FNC’s Approach to pGSE (Proprietary Messages)
• Order Level - Feedback • SSRs and View Detail Button – This is already in
your CMS • Aggregate Level - Action
• This is already in your CMS • Workflow Level…
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FNC’s Approach to pGSE (Proprietary Messages) C
MS
GAAR® UAD Pass DNA rules
Draft Not Acceptable/Return
to Service Provider
NO
REJECT
UCDP Submission
Submission Exception
Exception/
Hardstops
Resolved
Draft received
Use pGSE?
Reviewer/ Business
Logic
Compare pGSE findings to pGSE rules
pGSE fired?
Reviewer/ Business
Logic
Route to exception
queue
NO
YES
NO
YES
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Our Message To You
• FNC platforms and AI Ready™ are ready to accept the new proprietary messages.
• The proprietary messages are only warnings for now. • They begin on January 28, 2013. • It is best to absorb and analyze these warnings before
introducing operational changes.
Understanding Joint GSE UAD Warnings to Fatals
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Certain UAD Edits Convert from Warning to Fatal
• The UAD formatting required for all UCDP appraisal submissions with four “major” appraisal forms.
• GSEs jointly agree upon UAD formatting requirements.
• Until now, all UAD edits that have fired at UCDP have returned as warnings.
• In 2013, 10 fields will have their corresponding UAD edits convert to fatal.
• On January 29th, the first set of fields will be announced and scheduled for Q2-2013.
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UAD Edits Converting from Warning to Fatal
The following convert from warning to fatal in 2013: Appraisal effective date* Subject contract price / comparable sale price * Subject contract date / comparable date of sale/time * Above grade Gross Living Area (GLA) (subject and comparables) * Sale type (subject and comparables) * Condition rating (subject and comparables) Quality of construction rating (subject and comparables) Location rating (subject and comparables) View rating (subject and comparables) Subject and comparable address (includes unit number for condos)
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UAD Edits Converting from Warning to Fatal
• GAAR UAD directly covers the joint UAD edits. • Contact your account team for a list and schedule listing GAAR UAD
rules that will require a DNA update.
Data Point Warning(s) GAAR UAD Rules(s) Appraisal Effective Date 5277, 5278, 5279 FNC-C-RECDATE-000-00
FNC-C-RECDATE-000-01 FNC-C-RECDATE-000-04
Subject Contract Price 5030, 5031 FNC-C-CONT-009-01 FNC-C-CONT-009-00
Subject Above Grade Gross Living Area (GLA)
5084, 5085 ,5131, 5132
FNC-C-IMP-264-02 FNC-C-UNITDESC-180-02 FNC-C-UNITIMP-180-02 FNC-C-SCA-237-00
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UAD Edits Converting from Warning to Fatal
What you will need to do: • Make your account team aware of the GAAR
UAD rules (and UAD fields) that will need to be updated to DNA.
• To minimize operational impact, begin in a phased approach with the first five.
UCDP Data Submission Standards
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UCDP Data Submission Standards
• UCDP currently accepts: • MISMO 2.6 GSE Errata 1 XML (UAD Forms) • MISMO 2.6 XML (non-UAD Forms) • AI Ready XML • 1st Generation PDF • ACI XML
• On January 29, 2013, GSEs will announce that MISMO XML is their primary UCDP data submission standard.
• In the future (date TBD) GSE’s will sunset other data submission options with “6 month notice”.
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UCDP Data Submission Standards
• FNC supports, and always has supported, electronic XML delivery of appraisal data.
• AI Ready is the most secure and compliant process for delivery of appraisals from appraisers to lenders.
• FNC continues to work closely with the GSEs on the UCDP initiative.
• FNC continues to work closely with all major Form Software Vendors and all support AI Ready.
• CMS clients should request AI Ready appraisal (ENV format) and will have no operational impact.
• ENV contains all the appraisal - as data. • ENV includes AI XML and MISMO XML in one secure package.
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UCDP Data Submission Standards
• The AIReady process (the .ENV file) is still the most secure way to deliver an appraisal to a lender.
• The AIReady process is still the only tamper-evident delivery protocol that maintains a seamless Direct Integration to the UCDP Portal.
• Maintain business as usual, using the AIReady process.
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Questions Post-Webinar
• Christian Leask – FNC UCDP Product Manager • [email protected] • (662) 236-8272
• Mike Mitchell – FNC Chief Strategy Officer
• [email protected] • (662) 236-8223
• Your Account Team
