FNMA/FHMLC Forms & USPAP
Recent changes to USPAP mean that the data requested by certain forms, including the URAR, isn't necessarily sufficient for USPAP compliance. This document explains why a la mode is not at liberty to make changes, even seemingly simple ones to copyrighted forms from FNMA or FHMLC. When extra information is needed, it will require addenda.
Document 4048 | Last updated: 12/30/2014 MJY
The issue of changing pre-printed text on forms such as the URAR became more prevalent after USPAP 2003 was released, specifying a 3 year sales history — instead of the 1 year requested on the URAR form.
In our efforts to make a minor change to the form to accommodate the needs of our customers, we contacted a Sr. Business Manager at Fannie Mae and asked about changing the form. In short, we were urged not to change the pre-printed text on the form. We were informed that delivering an appraisal on anything other than the official “instrument” (the copyrighted form) could cause Fannie Mae or Freddie Mac to reject the loan. Fannie Mae emphasized that a form does not have to be USPAP compliant. It is the report that must comply with USPAP, and this is accomplished through the use of addenda that provide the required information, if the form alone does not.
For supporting documentation, we were referred to the Fannie Mae Selling Guide, Part XI, Section 203 Appraisal (or Property Inspection) Reports, Page 1114. It states, in part:
"An appraiser may use computer software programs that are designed to reproduce our appraisal report forms — including programs that have “expandability” features that allow increases in areas of the forms that call for the insertion of narrative comments. However, the sequence of the information — as well as all of the specific information (including the instructions, entries, directions, etc.) — must be exactly as it appears on the hard‑copy of the form(s)."
What this means is that we, as software providers, should not take liberty in changing the pre-written text (i.e. the instructions) on any copyrighted form.
To find out more, you may reference the FNMA Seller Guide online www.efanniemae.com
The solution is to provide extra addenda with your forms to supplement information on the standard forms you use in your appraisal. We are working on a standard form to address this issue so that it is easier for you to comply with USPAP. Until it is released, you will want to use the space provided on the form or an extra addenda page through our Addenda tool.