Clear Capital’s property data collection platform has been verified to support a new Fannie Mae and Freddie Mac reporting standard, giving lenders another vendor option for loans eligible for inspection-based alternatives to traditional appraisals.
The Reno, Nev.-based valuation technology company announced Tuesday that its Universal Data Collection platform can produce reports that comply with the government-sponsored enterprises’ Uniform Property Data Report specifications.
Clear Capital completed the verification process June 17, ahead of the GSEs’ June 30 implementation deadline, although the company did not formally announce the milestone until Aug. 18.
The verification matters for lenders using Fannie Mae’s Value Acceptance + Property Data or Freddie Mac’s Automated Collateral Evaluation plus Property Data Report, known as ACE + PDR. In those programs, a trained third party collects information about a property’s condition and characteristics, but does not develop an opinion of value.
The property data collection generally includes an interior and exterior inspection, photographs, measurements, and other property details. The information is then delivered to the applicable GSE for collateral-risk assessment.
That makes the process different from both a traditional appraisal and a full appraisal waiver.
When a loan receives an eligible offer, the GSE supplies or accepts the property value while the data collection provides additional information about the home’s condition. Eligibility can change, however, if the loan terms or other transaction details are modified.
NMP previously examined that distinction in its coverage of Fannie Mae’s appraisal alternatives. More recently, Fannie Mae reported increased use of Value Acceptance + Property Data as it expanded the reach of its collateral alternatives.
What Clear Capital’s Verification Means
Clear Capital said its Universal Data Collection platform can now deliver property information in the standardized UPDR format required by the GSEs.
Its product also includes a proprietary summary intended to make the reports easier for underwriters to review. According to the company, the summary displays results returned through Fannie Mae’s Property Data API and Freddie Mac’s Beyond ACE API, highlights property details and potential risk indicators, and provides information about matters such as homeowners association status and solar-panel ownership.
The system also flags potential data deficiencies and health or safety concerns, Clear Capital said.
“The UPDR verification of our UDC solution reflects Clear Capital’s continued commitment to providing standardized, data-driven approaches to property valuation,” said Kenon Chen, executive vice president of strategy and growth for Clear Capital.
Chen said lenders need structured property information that can be incorporated into their existing workflows as the GSEs continue updating collateral requirements.
The verification does not mean Clear Capital determines whether a loan qualifies for Value Acceptance + Property Data or ACE + PDR. That eligibility comes through the relevant GSE underwriting system. Nor does it constitute approval of a property’s value or condition.
Instead, it confirms that Clear Capital’s system can collect and transmit property information using the GSEs’ required format when an eligible lender chooses to exercise the appraisal-alternative offer.
Two Standards, Two Workflows
The UPDR transition is connected to the broader modernization of mortgage valuations, but it should not be confused with the approaching Uniform Appraisal Dataset 3.6 mandate.
UPDR governs reports used for GSE property data collections. UAD 3.6 governs appraisal reports and the redesigned Uniform Residential Appraisal Report.
Beginning Nov. 2, all new appraisals submitted to Fannie Mae and Freddie Mac through the Uniform Collateral Data Portal must use UAD 3.6. New submissions using the legacy UAD 2.6 format will receive a fatal error and an unsuccessful submission status after that date. Revisions to previously submitted UAD 2.6 appraisals will remain permissible during the transition.
NMP has reported on readiness milestones involving First American’s appraisal technology and Solidifi’s FHA integration. Those certifications relate to appraisal reporting and delivery rather than the property data reports covered by Clear Capital’s latest verification.
Both transitions move the industry toward more structured collateral information, greater automation, and fewer static appraisal forms. But lenders must prepare for the standards through different operational tracks.
Clear Capital’s verification removes one potential obstacle for lenders using its platform for inspection-based appraisal alternatives. It does not, by itself, make a lender’s entire collateral operation ready.
Lenders still must coordinate with appraisal management companies, data collectors, appraisers, appraisal software providers, loan origination systems, and internal underwriting and quality-control teams. They also need procedures for determining when an appraisal alternative can be used, reviewing property-data findings, and responding when a collection identifies a condition that requires additional scrutiny.
Clear Capital recently expanded lenders’ access to its collateral products through a workflow integration with MeridianLink.
For originators, the immediate process may appear largely unchanged: the automated underwriting system determines whether an appraisal alternative is available, and the lender decides whether to exercise it. Behind that decision, however, lenders need verified technology and operational controls capable of turning a faster appraisal alternative into a compliant, usable collateral decision.
