The Uniform Appraisal Dataset (UAD) was created by government-sponsored enterprises Fannie Mae and Freddie Mac to standardize how appraisers report key property characteristics on conventional loan appraisals. Introduced in 2011, the UAD ensures all appraisal data—such as construction quality, condition, and property features—follows a consistent format and uses specific codes rather than free-form text. This uniformity helps lenders easily review and compare appraisal reports electronically, improving accuracy and reducing risk.
The UAD is not a new appraisal form but a set of detailed rules on completing existing forms, most commonly the Uniform Residential Appraisal Report (Form 1004). For example, condition ratings range from C1 (new construction, never occupied) to C6 (extensive damage requiring major repairs). Construction quality uses similar scales (Q1 to Q6), and views are coded as Neutral, Beneficial, or Adverse. These standardized ratings replace subjective descriptions with objective codes.
This approach originated from challenges during the 2008 housing crisis when inconsistent and inaccurate appraisals contributed to risky lending. By creating a “universal language,” the UAD improves the integrity of home valuations, making appraisal data more reliable for loan underwriting.
Who benefits from the UAD?
- Appraisers must follow UAD requirements to ensure their reports meet investor standards.
- Lenders receive cleaner, standardized data that streamlines loan processing and risk assessment.
- Homebuyers and homeowners benefit indirectly as accurate appraisals help protect against inflated home values or loan approval issues.
The UAD applies specifically to conventional loans that Fannie Mae and Freddie Mac purchase. Other mortgage types, like FHA and VA loans, use different appraisal standards.
For more on the mortgage loan process, see our article on loan approval and learn about how appraisal impacts loan underwriting in property appraisal review.
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