In April we announced that Loan Collateral Advisor® was adding new feedback messages that alert you when subjective and/or potentially biased words or phrases are included in appraisal reports submitted to the Uniform Collateral Data Portal® (UCDP®). These messages are intended to help you identify potential issues and to assist in compliance with Freddie Mac Single-Family Seller/Servicer Guide requirements (Guide Section 5603.4 Unacceptable appraisal practices). Today, these new Warning messages are live.

As part of our prior announcement, we also noted that, for certain words and phrases, the Warning message would transition to a Fatal message in Q4. The date for this transition has been set for October 26, 2023.

Warning messages do not currently prevent successful appraisal submission to UCDP or the delivery of the loan to Freddie Mac; however, beginning in October when the Warning messages transition to Fatal, the Fatal message will prevent submission of the appraisal to UCDP and delivery of the loan to Freddie Mac. We encourage you to take proactive steps such as enhancing procedures and training to ensure unsuccessful appraisal submissions are addressed and minimize delays in origination turnaround times. NOTE: Messages will show in Loan Collateral Advisor and on the Submission Summary Report (SSR) shared in UCDP.

You can review the new feedback message language and message IDs here. For more information about why we’re adding these messages and the types of words and phrases that could trigger them, please refer to our April 28 article. For additional information and best practices for appraisers, please review our Q&A with Scott Reuter, Single-Family Chief Appraiser.