Certified Residential Appraiser Practice Exam

UAD compliance is required for which type of appraisal reports?

1. Commercial properties

2. Single-family homes

3. Multi-family units

4. Vacant land

The correct answer is: Single-family homes

The Uniform Appraisal Dataset (UAD) compliance is specifically required for appraisal reports pertaining to single-family homes. This framework was established by Fannie Mae and Freddie Mac to standardize appraisal reporting for these types of residential properties. UAD focuses on specific data points and report formats to enhance consistency and improve the quality of appraisals, which is particularly important in the secondary mortgage market. Single-family homes are frequently involved in these transactions, thus necessitating a standardized dataset like UAD to facilitate appraisal review, data collection, and risk assessment processes. Other types of properties, such as commercial properties, multi-family units, and vacant land, do not fall under the UAD compliance requirement. While appraisals for these properties may follow different guidelines, they are not mandated to adhere to the UAD framework, making compliance specific to single-family home appraisals.