Saying Goodbye to Form 1004: Ordering and Identifying Appraisals Without Form Numbers

Hey fellow appraisers,

Let's talk about something baked into our muscle memory: form numbers. For years, the 1004, 1073, 2055... they haven't just been numbers; they've been shorthand for the entire scope of an assignment. When an order came in for a "1004," we instantly knew the property type, the general requirements, the expected report structure. It was familiar, maybe even comfortable.

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Well, as we all know, big changes are rolling in with the UAD 3.6 and Forms Redesign initiative from Fannie Mae and Freddie Mac. And one of the most fundamental shifts? Those familiar form numbers are going away for GSE appraisals.

I know, I know. It sounds a bit jarring at first. How will assignments be ordered? How will we know what kind of report to produce? How will reviewers understand what they're looking at without that familiar number at the top?

I've been digging into the GSE resources, particularly the "Functioning without Form Numbers" guide and the example URARs (like the SF1 Single Family Scenario in Appendix D-1), and I wanted to share what I've learned from one appraiser to another. The good news is, it’s actually pretty logical once you understand the new mechanism.

Why the Change? Beyond Just Numbers

First, let's quickly touch on the 'why'. The old system, while familiar, had limitations. The static nature of the forms meant they didn't always handle atypical properties well (think site condos, multi-unit properties with ADUs, etc.). We often found ourselves relying heavily on addenda to explain unique situations.

The UAD 3.6 initiative aims for a more standardized, data-driven approach. The goal is a single, dynamic Uniform Residential Appraisal Report (URAR) that adapts to the property being appraised, rather than trying to fit every property into a pre-defined box. This requires a new way of defining the "type" of report.

The "How": Property Characteristics Drive the Report

Instead of relying on a form number, the new URAR uses specific data points collected about the subject property to define the scope and structure of the report. Think of it this way: the data itself tells the system (and the reader) what kind of appraisal this is.

Where does this happen? Primarily in the Summary Section of the new URAR. Based on the GSE documentation, there are six key data points that work together:

1. Property Valuation Method: (e.g., Traditional, Desktop, Hybrid, Exterior Only) - This is a major driver.
2. Construction Method: (e.g., Site Built, Manufactured, Modular, On-Frame Modular, Container, 3D Technology)
3. Subject Site Owned in Common: (Yes/No indicator) - Key differentiator for condos/co-ops.
4. Project Legal Structure: (e.g., Condo, Co-op, PUD, None)
5. Units Excluding ADUs: (The number of primary living units: 1, 2, 3, or 4)
6. Accessory Dwelling Units (ADUs): (The number of ADUs: 0, 1, or more)

Putting it Together: Examples

How these pieces combine determines the "report type":

• Example 1: Your Standard Single-Family (Old 1004)
  • Valuation Method: Traditional
  • Construction Method: Site Built
  • Site Owned in Common: No
  • Project Legal Structure: None (or PUD if applicable)
  • Units Excluding ADUs: 1
  • ADUs: 0 (or 1 if present)
  • Result: The URAR presents sections relevant to a standard single-family home appraisal.
• Example 2: A Condominium Unit (Old 1073)
  • Valuation Method: Traditional
  • Construction Method: Site Built (usually)
  • Site Owned in Common: Yes
  • Project Legal Structure: Condo
  • Units Excluding ADUs: 1
  • ADUs: 0 (typically)
  • Result: The URAR includes condo-specific sections (project info, fees, etc.).

• Example 3: A 2-4 Unit Property (Old 1025)
  • Valuation Method: Traditional
  • Construction Method: Site Built
  • Site Owned in Common: No
  • Project Legal Structure: None
  • Units Excluding ADUs: 2, 3, or 4
  • ADUs: 0 (or 1+ if present)
  • Result: The URAR incorporates sections relevant to multi-unit properties, likely including rental analysis sections.
• Example 4: A Manufactured Home (Old 1004C)
  • Valuation Method: Traditional
  • Construction Method: Manufactured
  • Site Owned in Common: No (usually, unless a condo project)
  • Project Legal Structure: None (or Condo/PUD if applicable)
  • Units Excluding ADUs: 1
  • ADUs: 0
  • Result: The URAR includes manufactured home-specific sections (HUD label info, etc.).

You get the idea. The combination of these key characteristics, entered accurately, dictates the relevant sections and data points that appear in the final URAR.

What This Means for Our Workflow

1. Mindset Shift: We need to start thinking less about "which form?" and more about "what are the defining characteristics of this property and assignment?"
2. Data Accuracy Upfront: Capturing these key data points correctly during inspection or initial assignment review becomes even more critical.
3. Client Communication: Be prepared for assignment orders to potentially look different. Clients and AMCs will also be adapting, likely specifying these key characteristics instead of just a form number.
4. Potential for Clarity: Ideally, this leads to reports that more accurately reflect the actual property, reducing the need for extensive addenda for slightly unusual properties.

The Bottom Line

The transition away from form numbers is a significant change, but it's part of a necessary evolution towards a more modern, flexible, and data-centric appraisal process. It's driven by the characteristics of the property itself, which, when you think about it, makes a lot of sense.

It will take some getting used to, no doubt. But understanding how these key data points now define the report is the first crucial step. I strongly recommend checking out the "Functioning without Form Numbers" document and the sample URAR reports on the Fannie Mae and Freddie Mac UAD pages.

Let's keep learning and adapting together. This is a big shift, but focusing on accurate data and understanding the new structure will help us navigate it smoothly.

Stay sharp out there,

John Anderson