Everyone in the industry is now familiar with three little letters — XML — thanks in part to the implementation of the Uniform Mortgage Data Program (UMDP) by Fannie Mae and Freddie Mac. But, the use of XML as a vehicle for transporting appraisal data is not new or unique to this circumstance. What is missing from this widespread adoption of XML for appraisal data under this initiative is industry-wide cooperation on the methods for securing the XML as it moves from the appraiser’s desktop through AMCs and lenders and on to the Uniform Collateral Data Portal (UCDP).

The software vendors that enable appraisers to create an XML copy of their appraisal report provide for secure delivery options such as a location for the intended recipient. AMCs and their technology partners are overjoyed with the advantages of receiving XML that can be used in electronic appraisal review. And of course, the GSEs are amassing appraisal data at a staggering rate which fuels their internal, proprietary risk analytics. But, we have not seen much discussion or concern about some of the implications of this, which, left unchecked, could expose everyone involved to liability and unintended consequences.