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Effective June 22nd, Fannie Mae and Freddie Mac will begin transitioning UAD system warnings to fatal hard stops on appraisal submissions

Santa Ana, Calif. –June 13, 2013 – Veros Real Estate Solutions (Veros), an industry leader in collateral valuation technology, enterprise risk management and predictive analytics, has confirmed its proprietary PATHWAY system is equipped to handle the upcoming Uniform Collateral Data Portal® (UCDP®) changes announced by the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac.

The changes involve both the UCDP, the single joint portal for the electronic submission of appraisal data files to the GSEs, as well as the Uniform Appraisal Dataset (UAD), which standardizes key appraisal data elements and is intended to enhance appraisal data quality on conventional loans.

Beginning June 22, electronic appraisal files submitted to the UCDP that do not include valid required UAD fields for appraisal effective date, subject contract price and comparable sale price, above grade gross living area (for subject property and comparable sales) and sale type (for subject property and comparable sales) will receive Hard Stop 401 (UAD Compliance Check Failure) and a “Not Successful” status will be issued. The loan will not be eligible for delivery to either GSE unless an appraisal with the required data in the correct format is resubmitted to UCDP to ensure a “Successful” status. To date, UCDP has returned 402-warning hard stops when this data is not present or incorrectly formatted in an effort to allow lenders time to acclimate to the technology and operational processes. The enhancements to the PATHWAY system ensure that Veros’ clients will continue to have a smooth user experience and will be up-to-date on all the latest GSE changes.

“It’s important that lenders delivering to the GSEs stay abreast of these changes and work with their technology providers and internal operations to verify systems are in place to appropriately evidence and manage warnings and fatal stops as the GSEs make their adjustments,” said Charles Rumfola, senior vice president of strategic initiatives for Veros. “At Veros, we’ve taken appropriate measures to validate all client integrated solutions are prepared to accommodate the announced changes.”

PATHWAY ensures the safe delivery of appraisal reports to the GSEs by providing appraisal management companies (AMCs,) loan origination system (LOS) providers, lenders, correspondent lenders and other technology vendors with a direct, system-to-system link between their solutions and the UCDP. The Veros solution includes UAD and non-UAD report submission, UAD compliance quality checks, PDF conversion and the return of UCDP submission results. “PATHWAY is an ideal solution for entities with volumes too large for manual upload to UCDP’s web interface, but too small for an enterprise platform solution,” Rumfola noted.

Veros advises lenders to confirm their integrated solution is equipped to return and manage current UAD messages, including the messages referred to as “402 warning hard stops” and “401 fatal hard stops”. Doing so helps ensure that end users are aware of UAD compliance issues and can take corrective action to improve submission quality.

“Lenders, AMCs and others who submit electronic appraisal reports to the GSEs need to maintain a complete workflow between their integrated solution and UCDP,” Rumfola explained. “Therefore, it’s critical that the solution they use is prepared to identify, present and manage both types of UAD errors according to the latest GSE rules, and route the appraisal to the next logical step for correction, override or re-submission. This way, they can ensure there is no interruption to their pipelines,” he said.

More information on the GSE changes can be found in the agencies’ newsletters:

For information regarding how PATHWAY helps companies seamlessly manage their appraisal pipeline click here, or contact Veros at 866.458.3767.

About Veros Real Estate Solutions

Veros Real Estate Solutions, a proven leader in enterprise risk management and collateral valuation services, uniquely combines the power of predictive technology, data analytics and industry expertise to deliver advanced automated decisioning solutions. Veros products, systems and services, integrated into industry leading companies, are now optimizing millions of profitable decisions throughout the mortgage industry from loan origination through servicing and the secondary markets. The company provides solutions to control risk and increase profits including automated valuations, fraud and risk detection, portfolio analysis, forecasting, next-generation property valuation workflow and risk management platforms, and is the official technology provider for the Uniform Collateral Data Portal®. The company is headquartered in Santa Ana, Calif. For more information, visit

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