The Federal Housing Finance Agency has postponed the implementation of the Uniform Loan Delivery Dataset (ULDD), part of the Uniform Mortgage Data Program that the agency has been working on since May 2010.
According to the FHFA, slowing implementation will make it easier to transition successfully to the new loan delivery format, whereas moving more quickly could lead to problematic confusion and data management difficulties. Because of that, both the required and voluntary implementation deadlines have been pushed back. Now, compliance must be ensured by April 23 and July 23 of 2012, respectively.
This change is restricted to only the ULDD, however, not the rest of the Uniform Mortgage Data Program (UMDP). The rest of the UMDP will continue as previously scheduled. UMDP is a long-term initiative to improve mortgage data consistency and quality, meant to allow government-sponsored enterprises Fannie Mae and Freddie Mac to more effectively collect and store data on collateral borrowers and loans.
According to FHFA acting director Edward DeMarco, this will help meet housing and mortgage industry stakeholders' desires for more uniform loan and appraisal data, strengthening the housing finance system as a whole and mortgage lenders as well as benefiting Fannie and Freddie. The GSEs will be able to manage risks more effectively and lenders should find having standards in place allows them to operate more efficiently.
There has been some concern that lenders would be confused by the fact that the Federal Housing Administration is adopting the Uniform Appraisal Dataset on January 1, 2012. Some officials have noted that mortgage lenders may grow confused by different implementation dates for GSEs and government agencies, causing them to mistake their own mandatory and optional compliance deadlines.
UMDP deadlines have been changed in the past as well, also by slowing the process, according to HousingWire. The implementation of the Uniform Collateral Data Portal was performed unevenly, according to the source, due to difficulties among appraisers adjusting to the new process. The Portal accepts appraisal reports in a new format, standardized for industry-wide use and designed to organize property data information more efficiently.
This is meant to streamline the process of communication between Fannie and Freddie and lenders, so that any problems with a loan can be evaluated as soon as possible. In the past, difficulties frequently went undiscovered until after loan approval, complicating the process of correcting them. The more efficient processing, according to the source, is meant to make it easier to enforce repurchase and warranty claims. Problems with compliance have prevented some deals, however, because deals with Fannie and Freddie must meet the new regulations.