How UAD 3.6 Data Fields Are Reshaping Everyday Appraisals

I’ve seen the appraisal industry evolve—but UAD 3.6 is a major leap forward. As Fannie Mae and Freddie Mac retire traditional forms like the 1004 and 1073, appraisers must adapt to a new, dynamic reporting framework. Here’s what that means for your daily workflow.

The familiar URAR forms we've used for decades are now being replaced. Instead of selecting a form based on property type, the new appraisal software dynamically generates appropriate report sections by analyzing specific, discrete data points. These include crucial elements such as Property Valuation Method (e.g., Traditional, Hybrid, Desktop, Exterior Only) and Construction Method (e.g., Site Built, Manufactured, Modular, 3D Technology). Precisely identifying these characteristics directly informs the structure and content of your appraisal report.

Several key changes introduced by UAD 3.6 have significant real-world impacts on everyday appraisal practice::

1. ANSI Z765 Compliance: While adherence to ANSI standards for Gross Living Area (GLA) measurements has always been essential, UAD 3.6 explicitly mandates compliance. Meticulous, ANSI-compliant measurement of finished, unfinished, and standard/non-standard areas now directly influences reported GLA. Appraisers must strictly adhere to ANSI guidelines to avoid valuation discrepancies and potential reconsiderations of value.
2. Enhanced Construction Method Categories: Clearly defining construction methods (Site Built, Manufactured, Modular, 3D Printed) helps lenders and appraisers uniformly assess risk and property value, eliminating ambiguity previously hidden in freeform text.
3. Structured Reporting of Atypical Properties and ADUs: UAD 3.6 standardizes the reporting of Accessory Dwelling Units (ADUs) through clearly defined indicators, simplifying valuation complexity and minimizing subjectivity. For atypical properties, such as detached condos or 2- to 4-unit condominiums, the dynamic report structure ensures consistent, detailed reporting, significantly aiding lenders in their risk assessment and loan processing.
4. Reconsideration of Value (ROV): The update introduces specific data fields designed explicitly to support Reconsideration of Value processes. Capturing standardized data related to ROV cases enhances transparency, simplifies compliance tracking, and streamlines the appraisal review process—especially critical as regulatory scrutiny continues to rise.
5. Data-driven Deficiency Reporting: UAD 3.6 introduces a more structured approach to reporting property deficiencies, such as issues with exterior walls, garages, and other property features. These explicit data points include severity indicators, enabling clearer, more objective appraisal narratives. Accurate deficiency reporting aids in risk assessment, lender review efficiency, and ensures consistency across appraisal reports.
6. Discrete Data Capture & Standardized Definitions: UAD 3.6 emphasizes discrete data entry, significantly reducing reliance on freeform text. Appraisers now focus on standardized enumerations for concepts such as Market Area, Neighborhood, Condition (C1-C6), and Quality (Q1-Q6). This shift enhances consistency across appraisals and simplifies lender and regulatory reviews, although initially, it may require adapting to selecting the most accurate standardized options rather than descriptive narratives.

From the ordering process to final submission, every stage now emphasizes precise data selection and standardized reporting. Modern appraisal software with integrated compliance checks via API is becoming indispensable. This ensures early detection of potential errors, significantly reducing revisions and rework.

To effectively navigate this transition, appraisers must proactively prepare by updating their appraisal software, aligning internal processes to stringent ANSI Z765 standards, and thoroughly educating themselves on the new data requirements. Ongoing communication with lender clients about these changes and potential impacts on appraisal ordering and reporting processes is also crucial.

In conclusion, UAD 3.6 is not merely a compliance update—it represents a fundamental modernization of property valuation methods. By embracing this dynamic, structured approach, appraisers can significantly elevate appraisal quality and reliability, ultimately benefiting lenders, regulators, and homeowners alike. This change offers a valuable opportunity for appraisers to enhance their practices and provide greater clarity and accuracy throughout the property valuation process.