Federal regulators overseeing Fannie Mae and Freddie Mac have launched a "major new initiative" to encourage lenders to submit appraisal and loan delivery data electronically, by requiring Fannie and Freddie to use uniform data standards, file formats and data collection processes.
The Uniform Mortgage Data Program will also require Fannie and Freddie to collect more complete and consistent data on loan characteristics, borrower information, the property securing the loans and the identity of the parties creating the transaction, the Federal Housing Finance Agency announced today.
Common data definitions, electronic data capture and standardized data protocols will improve efficiency, lower costs and enhance risk monitoring, said FHFA Acting Director Edward J. DeMarco in a press release.
"Fannie Mae and Freddie Mac will continue their own proprietary reviews of appraisal and loan information, using their own unique business models and policies," DeMarco said. "However, we asked the Enterprises to work together to implement a common data protocol that will ultimately benefit borrowers, lenders and other market participants."
Under a timeline published by FHFA, Fannie and Freddie are to have a joint system for electronic delivery of appraisal data up and running by October. The new standards for single-family appraisal forms must be used on all loan applications dated Jan. 1. or later.
Fannie and Freddie are to make joint data set specifications for loan delivery available in June, which will be required for all loans delivered to them beginning Sept. 1.
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