Surfs up – Be prepared for UAD 3.6: What lenders need to know 

If you were to ask anyone in the mortgage industry what “1004” means, they would immediately tell you that it is the Fannie Mae appraisal form for single-family homes. How about “1004 C?” That’s their form for manufactured homes and “1073” is their form for condominiums. Freddie Mac uses the same form templates, just with different numbers. 

But that’s all about to change. For the first time in more than two decades, the presentation of the appraisal report is being overhauled. The GSEs are in the “start your engines” phase of an industry-wide implementation of the re-designed Uniform Residential Appraisal Report (URAR) that consolidates the individual forms into a single, data-driven, dynamic appraisal report layout. Instead of needing a different form depending on the scope of work, the redesign streamlines all conventional lending appraisal forms into one consistent and standardized report style – and that’s just the start. Yes, the form numbers are gone, too. 

What’s changing? 

The Uniform Appraisal Dataset (UAD), originally implemented in September 2011, is also being replaced with a new version, dubbed the UAD 3.6, which is a file specification derived from the industry data standard, MISMO Reference Model version 3.6. 

The comprehensive new URAR is designed to increase the use of discrete data responses replacing free-form text. The changes improve readability and include new features like a synopsis of key information about the subject property and the appraisal results to be taken into consideration by the lender at the beginning of the report. The new URAR is engineered to improve data integrity as well as usability for both professionals and consumers.  

Additionally, the review and underwriting processes will benefit from the more comprehensive reporting and the standardized organization of information that will minimize review times and reduce revisions, increasing overall efficiency. 

Gone are the days of pen and paper. The world has changed, and the retirement of boilerplate templates ladened with free-form text will make way for better results for lenders, appraisers and consumers in the future. It also means that modern approaches using data analytics in the appraisal process will be more accessible and more accurately implemented. 

The timeline

The changes have been in the works by the GSEs since 2018 and become available to everyone starting January 26, 2026, when lenders can submit either current production UAD 2.6 or the new 3.6 under the broad adoption period. The mandate requires the use of UAD 3.6 and the new URAR for all Fannie Mae and Freddie Mac loans delivered on or after November 2, 2026. 

As you can see, there’s a lot of changes coming. Instead of waiting to dive into the updates next year, there are important steps that lenders can begin now to prepare to catch the UAD 3.6 wave. A Limited Production period gets underway on September 8 and allows lenders who have received prior GSE approval to dip their toes in and work their way through the new process in coordination with their trading partners. This is not a test phase and uses live production delivery requirements. 

Whether you engage in Limited Production or not, the selection of your implementation date is a multi-faceted decision. Everyone is encouraged to start preparing now. Considerations of policy updates, procedural changes and staff training are integral to the preparations. 

Here are a few suggested areas to assess as you prepare to go for a swim. 

Credit policy

Both GSEs released updates to their Seller/Servicer Guidelines in June. One of the biggest changes is in terminology to align the policy with the language used in the new URAR. This includes title changes, updates to the reporting of accessory dwelling units (ADUs), clarifications on how the number of units are classified and counted, and discussion of new requirements. Other changes include the elimination of separate addendums and new specifications for appraisal update and completion assignments. All users of appraisals will benefit from the videos and guides that can be found on both GSE’s UAD websites. 

Appraiser readiness 

UAD 3.6 is a complete overhaul of how appraisals are reported. Are the appraisers you work with getting ready? Have they taken the education offered that outlines the new requirements for the redesigned URAR? It is assumed that many appraisers plan to offer 3.6 UAD services. However, they will not all be ready at the same time. Some may not begin until the transition period that the GSEs refer to as Broad Adoption starts January 26, 2026. The change in the assignment for the new URAR’s scope of work may result in different time commitments and fee schedules from appraisers as well.  

Operational and technology considerations 

Lenders should ensure their operations teams and partners are ready to transact this new style of reporting ahead of the mandate. Coordination with trading partners and technology providers is essential. How have they prepared? When will they be ready to support orders for the new UAD 3.6 reports for the various assignment types? There will be changes to file types and how images are submitted. 

The operational impact of UAD 3.6 is really the ultimate point of convergence for the implementation of the new URAR. And it should be noted that both styles of reporting will be in flight during the transition period. Further, the GSEs have established May 3, 2027, as the “retirement date” when the pipeline of loans using 2.6 legacy reporting will have cleared the pipeline. 

It’s time to get started

The new URAR and UAD 3.6 represent a monumental transformation which will change not only the way appraisal reports are ordered, but also how they are produced and ultimately used in the origination of residential mortgage lending. Those that plan and prepare will be positioned to win. Instead of getting hit with the fire hose when these changes go live, take some time now to get ready to ride the wave. 

Liz Green is the senior vice president of valuation solutions at ServiceLink.

This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.To contact the editor responsible for this piece: zeb@hwmedia.com.