The Federal Housing Administration (FHA) announced last year in Mortgagee Letter 2015-08 the implementation of the new Electronic Appraisal Delivery (EAD) portal. The technology is similar to what is currently in place with Fannie Mae and Freddie Mac’s Uniform Collateral Data Portal (UCDP), including utilizing Veros as the technology provider. The EAD portal is built using the Mortgage Industry Standards Maintenance Organization (MISMO) 2.6 XML format with embedded PDF; we already require this today from our appraisers. The EAD portal checks electronic appraisal data submissions against Uniform Appraisal Dataset (UAD) and FHA appraisal data requirements, then provides error messages and/or warning notifications to review and/or remedy.
Lenders must use the EAD portal for all appraisal data submissions to FHA for case numbers assigned on and after June 27, 2016 for the following Appraisal Report Forms:
- Fannie Mae Form 1004/Freddie Mac Form 70
- Fannie Mae Form 1073/Freddie Mac Form 465
- Fannie Mae Form 1004C/Freddie Mac Form 70B
- Fannie Mae Form 1025/Freddie Mac Form 72
- Fannie Mae Form 1004D/Freddie Mac Form 442
Valuation Management Group (VMG) has completed its integration of the new system and is currently submitting files successfully to the EAD portal. Lender Admins have the ability to select Valuation Management Group, LLC, as a Lender Agent to submit on their behalf in order to identify and address appraisal data issues before delivering the appraisal to our clients.
So far, the biggest challenge is to ensure that our Lenders provide the FHA Case Number in the correct format; it must be 10-digits, numeric and formatted as xxx-xxxxxxx. The 3-digit code that is included at the end should not be included, rather just the first 10 digits. For example: 123-1234567702 would just be 123-1234567, noticing that “702” is a product code. This 10-digit number must be placed under the field titled “Case Number,” not under “Reference Number” or anywhere else in the order.
Appraisers should ensure they are up to date with the latest version of their appraisal software to include digital signatures and we suggest you review the fact sheet Common Appraisal Data Errors and note the maximum file size is 15MB.
FHA’s last onboarding phase begins April 15, 2016, and if lenders have not yet registered, we encourage them to view the EAD portal resources to get started.
VMG will continue to monitor FHA’s progress and will provide updates.
Valuation Management Group is a national, full service appraisal management service company that manages the appraisal process for financial institutions, banks, mortgage bankers, and credit unions. We offer the full array of commercial and residential appraisal products and services. We take the appraisal process from ordinary to extraordinary.