Magazine article Mortgage Banking
GSEs Launch Joint Effort to Improve Loan and Appraisal-Data Collection
The Federal Housing Finance Agency (FHFA) has announced a major new initiative by Freddie Mac and Fannie Mae to improve the consistency and quality of data for appraisals and other loan information. This will enhance the depth of collateral, borrower and loan data submitted to the GSEs, according to FHFA.
The Uniform Mortgage Data Program (UMDP) is a long-term, joint effort to create improved and uniform data standards and collection processes. Fannie and Freddie worked with industry participants to develop the uniform standards.
"FHFA directed the enterprises to undertake the development of the standards to provide greater uniformity in the data they collect," said FHFA Acting Director Edward J. DeMarco. "This initiative is a major step toward meeting industry requests for uniformity in appraisal and loan data. Improvements in data quality will benefit all mortgage market participants and strengthen the housing finance system."
A common framework will increase efficiency for lenders while enabling the GSEs to manage risk more effectively, stated FHFA in a press release. The common data standards will provide uniformity for appraisers, mortgage lenders and servicers and other information providers in their data submissions to Fannie and Freddie. The data standards program will be deployed by the GSEs in phases through a common platform, and provides for continued stakeholder input. …