New UCDP hard stops effective Monday, 1/26

On Monday, January 26th, 22 UAD rules will be upgraded to hard stops. If you're a TOTAL or WinTOTAL user on the latest update, your E&O PowerView has already been upgraded to give you a fatal warning for the issues listed below.

• The sales contract was not analyzed.

• There was no comment on market conditions, even though one or more negative housing trends were indicated (for example, declining, over supply, over 6 months).

• Less than three settled sales were used as comparables.

• Research of prior sale was not performed.

• State certification is not provided on transaction amount over $1 million.

• Appraiser license state does not match subject property state.

• Supervisor license state does not match subject property state.

• Present use is indicated as not highest and best use.

• The appraisal indicates that the subject property has legal nonconforming zoning and cannot be rebuilt to the current density. This data indicates that the property is ineligible for delivery to Fannie Mae.

And we added a warning for the following:

• The appraisal indicates the subject property has a C6 condition rating. If the loan is not a DU Refi Plus or Refi Plus loan, the property is not eligible for delivery to Fannie Mae.

Here's an example of one of the new hard stop warnings in your E&O:

You'll want to correct these errors starting Monday to avoid delivery issues through the UCDP. Note, not all of the new hard stops could be flagged by our software because we don't have access to the data Fannie Mae is checking against (for example if the property is "a hotel/motel or condo hotel.") Find Fannie Mae's full list of new hard stops and more details here:
https://www.fanniemae.com/content/user_guide/ucdp-user-guide-fannie-mae-messaging.pdf

Additionally, we're working on an update to warn you of possible Collateral Underwriter flags. For example, for "The reported property value for the subject property is outside the typical range ($10,000 – $10,000,000) and may be erroneous," we'll give you a warning to double check your report if the subject value is below $10,000 or more than $10,000,000. Stay tuned for more information about that and read our memo about Collateral Underwriter here.

As always, enhancements like these keep you current with the latest changes from the GSEs. They're free, and just one of the many benefits of your membership.