Decoding the Uniform Property Dataset (UPD): What Appraisers Need to Know

Hey fellow appraisers, John Anderson here. There's a lot of buzz surrounding the UAD 3.6 and the redesigned Uniform Residential Appraisal Report (URAR). It’s a significant shift, moving us towards a more dynamic, data-driven reporting standard. But alongside the UAD update, there's another critical piece of the puzzle that deserves our attention: the Uniform Property Dataset (UPD).

I've noticed some confusion between these two initiatives, so let's clarify. While UAD 3.6 focuses on standardizing the appraisal report itself, the UPD is all about standardizing the collection of property data. Think of UPD as the standardized language for describing the property's characteristics, gathered during the inspection or data collection process.

What Exactly is the Uniform Property Dataset (UPD)?

Developed jointly by Fannie Mae and Freddie Mac, the UPD is a standardized set of data elements used to capture property information. Its primary goal is to ensure consistency and accuracy in property data collection, regardless of who collects the data or which valuation method is employed. This becomes especially crucial with the increasing use of desktop appraisals and hybrid assignments, where the appraiser might rely on data collected by a third party.

The UPD provides a common framework, ensuring that whether it's a traditional appraisal, a desktop appraisal using third-party data, or a hybrid approach, the fundamental property characteristics are captured in a uniform way.

UPD vs. UAD 3.6: Understanding the Difference

It's essential to grasp that UPD and UAD 3.6 are distinct but related initiatives:

• UPD: Focuses on the input – the standardized collection of raw property data points.
• UAD 3.6: Focuses on the output – the standardized structure and data requirements for the appraisal report (like the redesigned URAR).

How do they relate? Data collected using the UPD standard can be used to populate a UAD 3.6-compliant appraisal report. Standardizing the data collection (UPD) naturally leads to more consistent and reliable appraisal reporting (UAD 3.6). However, they serve different primary functions in the valuation workflow. You might use UPD-structured data even if a full URAR isn't the final product, such as in certain desktop appraisal scenarios.

Why UPD Matters Now More Than Ever

The push for modernization, efficiency, and alternative valuation methods makes UPD incredibly relevant. GSE initiatives like Fannie Mae's Value Acceptance + Property Data and Freddie Mac's ACE+ PDR rely heavily on the quality and consistency of the underlying property data. UPD provides the necessary standard for this data.

As appraisers, understanding UPD helps us:

1. Adapt to New Workflows: Prepare for desktop and hybrid assignments where consistent data collection is paramount.
2. Ensure Data Integrity: Maintain appraisal quality even when relying on third-party data collectors.
3. Improve Efficiency: Standardized data points can streamline the data transfer and analysis process.

Key Data Points and Considerations within UPD

The UPD addresses specific data collection nuances. Based on the GSE FAQs, here are a few practical examples appraisers should be aware of when collecting property data according to UPD standards:

• Accessory Dwelling Units (ADUs): Indicate if a unit is an ADU using the aduIndicator (True/False) and capture relevant details about its living area (e.g., kitchen presence).
• Garages: Distinguish between attached/built-in and detached structures. Detached garages require specific fields, including roomType. If a detached garage has no distinct rooms, use 'Other_Room' for roomType and 'Garage' for otherRoomTypeDescription.
• Exterior Deficiencies: Be precise. If only the siding is impacted, use 'Siding'. If the underlying structure is affected, report both 'Siding' and 'Exterior_Walls'.
• Multiple Features: If a unit has identical features (e.g., two separate balconies), report the feature type ('Balcony') for each instance, along with required photos and details for each.
• Heating Types: Select all applicable heating types (e.g., 'Hot_Water_Baseboard' and 'Wall_Furnace' if both exist).
• Photos: Specific requirements exist, like providing a kitchen photo even if no range/oven is present (setting rangeOvenExists to 'False').
• ANSI Compliance: Accurate Gross Living Area (GLA) calculation following ANSI Z765-2021 standards is crucial. UPD requires careful reporting of finished and unfinished areas, considering factors like ceiling height (especially below 7 feet or below 5 feet for sloping ceilings) and basement finishes. The ANSI examples provided by the GSEs offer valuable guidance for various scenarios.

The Role of Technology in UPD Compliance

Collecting detailed, standardized data consistently can be challenging, especially when dealing with complex properties or precise ANSI measurements. This is where technology steps in. Tools incorporating LiDAR scanning, like the Valuemate app, can automate the capture of floor plans and calculate square footage according to ANSI standards. AI vision can assist in identifying features, while structured workflows ensure all required UPD data points are collected efficiently and accurately during the property scan. This not only speeds up the process but significantly enhances the reliability and consistency of the collected data – the core goal of UPD.

Looking Ahead

While the redesigned URAR under UAD 3.6 is a major change, understanding the Uniform Property Dataset (UPD) is equally vital for navigating the future of appraisal. It’s the foundation for consistent data collection across various valuation methods. Familiarizing yourself with UPD standards and leveraging technology to ensure compliance will be key to adapting and thriving in this evolving landscape. Keep an eye on the GSE websites (Fannie Mae UAD page and Freddie Mac UAD page) for the latest UPD documentation and training resources.