Appraisers: The 1004 is Disappearing (Sort Of)

Hey fellow Real Estate Appraisers,

For years, numbers like 1004, 1073, and 2055 have been our compass for assignments. We see the number, we know the drill. But with Fannie Mae & Freddie Mac rolling out UAD 3.6 and the Forms Redesign, that familiar system is changing fundamentally.

The big news: Legacy form numbers are being retired for GSE appraisals.

So, how will we know what kind of report to create without them? How will orders even work?

Having dug into the GSE guidance, the shift is actually quite logical. Instead of relying on a static form number, the new, dynamic Uniform Residential Appraisal Report (URAR) will adapt its structure based on the property's characteristics.

The Data Now Defines the Report

The key lies in accurately capturing specific data points, primarily in the new URAR's Summary Section. These 6 factors work together to tell the system (and the reader) what kind of appraisal it is:

1. Property Valuation Method (Traditional, Desktop, Hybrid, etc.)
2. Construction Method (Site Built, Manufactured, Modular, etc.)
3. Subject Site Owned in Common (Yes/No - critical for condos/co-ops)
4. Project Legal Structure (Condo, Co-op, PUD, None)
5. Units Excluding ADUs (1, 2, 3, or 4)
6. Accessory Dwelling Units (ADUs) (Number of ADUs)

For example, indicating "Site Owned in Common: Yes" and "Project Legal Structure: Condo" will trigger the condo-specific sections, effectively replacing the old 1073 designation. Similarly, specifying 2-4 units replaces the 1025 concept.

What This Means For Our Workflow:

• Mindset Shift: Focus shifts from "Which form?" to "What are the property's defining traits?"
• Data Accuracy is Paramount: Getting these 6+ key points right during inspection/assignment intake is crucial.
• Evolving Orders: Expect assignment requests from clients/AMCs to specify these characteristics, not just a form number.
• Potential for Better Reports: This dynamic approach should handle atypical properties more clearly, potentially reducing reliance on lengthy addenda.

This transition is significant, moving us towards a more modern, data-driven valuation process. It requires adaptation, but understanding that property characteristics now drive the report structure is key.

Want a deeper dive into the 6 key data points, specific examples, and links to the GSE resources?

I've written a more detailed breakdown on our Company Blog. Check it out here for the full analysis:

➡️ http://valuemate.ai/blog/saying-goodbye-to-form-1004-ordering-and-identifying-appraisals-without-form-numbers

Let's navigate these changes together! What are your initial thoughts on moving away from form numbers?

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