UAD 3.6: Understanding the New Dynamic Structure of the URAR

Hi, I'm Daniel Yoder, an appraiser advisor here at Valuemate. We've been talking a lot about the upcoming changes with UAD 3.6 and the Uniform Property Dataset (UPD). While some discussions focus on high-level concepts or specific datasets like the UPD, today I want to dive into something very practical: how the Uniform Residential Appraisal Report (URAR) itself is structurally changing under UAD 3.6. It's not just about new data points; it's about how the report itself is assembled and presented.

From Static Form to Dynamic Report

The most fundamental shift, as we've discussed before when Saying Goodbye to Form 1004, is the move away from fixed, numbered forms. UAD 3.6 introduces a dynamic URAR where the content and structure adapt based on the property characteristics you input. Think of it less like filling out a static PDF and more like building a report from standardized components driven by data.

Key Structural Changes in the New URAR

Based on the sample reports and specifications released by the GSEs (like Appendix D-1: Single Family Scenario and Appendix E-1: Report Style Guide Supplement), here’s how the URAR is evolving:

1. The Summary Section as the New "Identifier": Since form numbers are gone, the initial Summary section becomes crucial for identifying the property and assignment type. Key data points entered here, such as Property Valuation Method (Traditional, Hybrid, Desktop, Exterior Only), Construction Method (Site Built, Manufactured, etc.), Project Legal Structure (Condo, Co-op), Units Excluding ADUs, and Accessory Dwelling Units, essentially define the framework for the rest of the report. The URAR Style Guide Supplement even assigns specific formatting codes (like TXR-B) to these fields, emphasizing their structural importance (See Appendix E-1, page 27).
2. Data-Driven Content Sections: Throughout the report, you'll see a greater emphasis on discrete data fields. While narrative commentary sections (TXC coded fields in the Style Guide) still exist for explanation and context, many areas rely more on selecting standardized inputs or providing specific data points rather than lengthy prose. For example, describing defects now involves itemizing the Feature, Location, Description, Affects Soundness/Integrity, Recommended Action, and Estimated Cost in a structured format (See Appendix D-1, page 4).
3. Conditional Logic: The report is designed to be dynamic. Sections relevant only to specific property types will appear conditionally. For instance, the detailed Project Information section (Appendix E-1, page 46) will only populate if the property is identified as being in a PUD, condo, or co-op project in the Summary section. Similarly, specific fields related to Manufactured Home details (Appendix E-1, page 37) appear only when that construction type is selected. This avoids irrelevant sections cluttering the report for simpler property types.
4. Standardized Visual Presentation: Appendix E-1, the Style Guide Supplement, meticulously outlines the required visual formatting – fonts, spacing, alignment, and layout codes (e.g., H1, TXR-B, TB, CK1). This strict standardization ensures consistency across all reports generated under UAD 3.6, regardless of the software used, making them easier to read and process by lenders and the GSEs.
5. Structured Comparison Grids: As detailed in our previous post on the Sales Comparison Approach changes, this section relies heavily on a structured grid format for presenting comparable data and adjustments, moving away from purely narrative explanations.

What This Means for Your Workflow

This evolution of the URAR structure requires appraisers to be meticulous with data input. Understanding that entering "Condominium" in the Project Legal Structure field will trigger a whole new section of the report is crucial. Your workflow might shift towards:

• Precision Data Entry: Ensuring accuracy in selecting the correct enumerations and data points is paramount, as these directly drive the report's structure and content.
• Understanding Data Relationships: Recognizing how data points in the Summary and Subject Property sections influence subsequent parts of the report.
• Adapting Commentary: Focusing narrative commentary on providing context and explanation where needed, complementing the structured data rather than repeating it.

Tools designed for structured data collection, like Valuemate, can potentially ease this transition by helping ensure data is captured accurately and organized according to these new UAD 3.6 principles from the outset.

The Takeaway

The new URAR under UAD 3.6 is more than just an updated form; it's a fundamental shift towards a standardized, data-driven reporting framework. By understanding these structural changes – the importance of the Summary section, the reliance on discrete data, conditional logic, and standardized presentation – you can better prepare for generating compliant and efficient appraisals in the near future.