UAD1235
WARNINGOfficial message text · Appendix H-1: UAD Compliance Rules — URAR, v1.5
The 'Functional Depreciation' displays as a negative number on the appraisal. However, it must be delivered as a positive number in the UAD XML. For assistance with this message, contact the appraisal software vendor.
Warning — the submission can still come back Successful, but the finding is surfaced to your lender's review team.
What triggers UAD1235
The published rule logic, verbatim:
If CostApproachIndicator = "true" and DepreciationFunctionalAmount < 0 in a given instance of IMPROVEMENT_COST_AND_DEPRECIATED_VALUE/IMPROVEMENT_DEPRECIATION
- • Minimum allowed value: 0.
- • Bound to MISMO data point
DepreciationFunctionalAmount (%PV%)at../VALUATION_ANALYSIS/VALUATION_REPORT/APPROACH_TO_VALUE/COST_APPROACH/IMPROVEMENT_COST_AND_DEPRECIATED_VALUES/IMPROVEMENT_COST_AND_DEPRECIATED_VALUE/IMPROVEMENT_DEPRECIATION/
How to fix it
On the URAR, this lives at: Cost Approach → Functional Depreciation (%PV%). Complete or correct that field in your form software, regenerate the package, and re-check before submission.
The free UADCheck inspection evaluates UAD1235 automatically — attach your package and see in seconds whether it fires.
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Source: Appendix H-1: UAD Compliance Rules — URAR, v1.5 (public GSE document). Verified against the published spreadsheet; not affiliated with Fannie Mae or Freddie Mac.