FHA Appraisal Inspection and Reporting Requirements
FHA Electronic Appraisal Delivery (EAD) Portal
FHA recently implemented their revised appraisal inspection and reporting requirements; which are explained in detail in the new FHA Single Family Housing Policy Handbook 4000.1 rev date 09/30/2015. The FHA Handbook 4000.1 can be viewed here. The revised appraisal requirements start on page 465 and continue through page 532. We strongly recommend reading the new requirements as they will increase your inspection and report writing efficiencies.
The revised reporting requirements were designed to facilitate FHA’s new Electronic Appraisal Delivery (EAD) Portal. The EAD Portal is a web-based technology system that enables electronic transmission of appraisal data and reports to FHA by FHA-approved mortgagees and/or their designated third-party service providers prior to loan endorsement. The EAD system is very similar in concept and design to the Fannie Mae UCDP / UAD Collateral Underwriter (CU) processing. Be advised, some of the report writing requirements are much different than that of Fannie Mae and Freddie Mac. As with UCDP / UAD and CU, if your appraisal reports do not meet HUD EAD report writing requirements, the appraisal report(s) will be rejected and returned for revisions. Appraisal Logistics has a direct integration with the FHA EAD processing portal for appraisal uploads and report requirements. We will work with you during the implementation process. Although participation in EAD is not required until June 2016, we expect many of our Clients to jump on board sooner rather than later in an attempt to acclimate to the new system and requirements.
Click here to view all of the FHA EAD Hard Stops and Error Messages.
Simply put, the UCDP Collection Data Portal (UCDP) is an electronic repository established by the GSE’s (Fanne Mae/Freddie Mac) to accept and store the appraisal reports in advance of the rest of the loan file. This “early” submission process ensure that the appraisal report passes certain standard (formatting, complete data elements, ect.), and allows for ample time to correct any defects before the entire loan file is received by the GSE’s.
The Uniform Appraisal Dataset (UAD) is a component of the Uniform Mortgage Data Program® (UMDP®), jointly established by Fannie Mae and Freddie Mac under the direction of our regulator, the Federal Housing Finance Agency, to provide common requirements for appraisal and loan delivery data. In an effort to enhance appraisal data quality and consistency and to promote the collection of electronic appraisal data, the GSEs have developed the UAD to standardize the input values for certain data elements. For example:
- Specific date
- Dollar amounts
- Property condition
- Quality of construction