Real Estate Analysis and Valuation Insights

Introduction: The Industry’s Biggest Form Change in Decades

After decades of working with static appraisal forms like the 1004, 2055, and 1073, the residential appraisal profession is preparing for one of its most significant transitions in recent history. Beginning this fall, appraisers, lenders, and clients will see the first wave of the Uniform Appraisal Dataset (UAD) 3.6 rollout under the Uniform Mortgage Data Program (UMDP).

This isn’t just a form redesign — it’s a fundamental modernization or change of how residential valuations are reported, reviewed, and understood.

Why UAD 3.6? Moving From Forms to Features

The current appraisal process has long relied on rigid forms that often force appraisers to “fit” unique properties into outdated templates or standard forms. UAD 3.6 seeks to fix this by delivering a dynamic Uniform Residential Appraisal Report (URAR) that adapts to each assignment.

Key changes include:

• Dynamic reporting: Sections will appear or hide depending on property type and features (e.g., ADUs, condos, manufactured housing) depending on what is selected by the appraiser.
• Structured data vs. narratives: Less reliance on lengthy comment boxes and more standardized inputs. Narrative will still be necessary; the changes don’t eliminate the need for supporting narrative, however it changes the format and where the narrative shows up in the report.
• Terminology alignment: Terms like “above-grade finished area” now follow ANSI Z765-2021 measurement standards, improving consistency. Additionally the declarations are embedded in the new form.

Timeline to Adoption: What Happens When

?? Here’s the official UAD 3.6 rollout schedule:

• Limited Production: Sept 8, 2025 – Jan 25, 2026
  Select lenders begin ordering and accepting appraisals in the new format.
• Broad Production: Jan 26, 2026 – Nov 1, 2026
  All lenders may use UAD 3.6, though UAD 2.6 remains accepted during this overlap.
• Mandatory Adoption: Nov 2, 2026
  All new GSE appraisal reports must be completed using UAD 3.6.
• Legacy Retirement: May 3, 2027
  UAD 2.6 officially sunsets; all revisions or updates must be in UAD 3.6.

Think of this as a countdown clock: in less than a year, early adoption begins — and in just over two years, legacy forms will disappear altogether.

Practical Changes for Appraisers

Here’s how this shift will affect daily work:

• Dynamic Sections: Instead of every form looking identical, reports will expand or contract based on property complexity.
• New Data Fields: More granular inputs for condition, quality, ADUs, GLA, and site details. This will materially change the way residential appraisers perform property observations and the time spent at the subject property.

For appraisers, this means adjusting workflow, updating software, and learning new terminology — and embracing new technologies (hardware and software)

Supporting Technology & Industry Shifts

The UAD 3.6 transition is part of a broader “modernization” under the Uniform Mortgage Data Program (UMDP). In June 2025, MISMO released its Appraisal Procurement Dataset Specification, which standardizes how appraisals are ordered in alignment with the new forms.

At the same time, appraisers are seeing parallel shifts:

• AI & AVMs (Automated Valuation Models): Gaining traction in certain use cases, though not a replacement for human analysis, or appraisers.
• Data Transparency: Structured reporting should improve “fairness” and remove possible bias, improve consistency, and auditability.
• Regulatory Alignment: With ANSI measurements embedded, industry expectations are becoming clearer and more uniform with declarations included in the new form.

Together, these changes signal a future where appraisers will have to balance deep professional judgment with standardized, technology-supported reporting. For years less emphasis was placed on the appraiser’s observation of the subject property, leveraging appraisers to place even more emphasis on the analysis this change seems to place more emphasis on data collection than the analysis.

Appraiser Action Checklist

Here’s how to get ready now:

? Review UAD 3.6 reference materials from Fannie Mae and Freddie Mac.
? Take continuing education (CE) courses on UAD 3.6 and ANSI Z765-2021.
? Make sure appraisal software is updated to handle dynamic URAR formats.
? Begin practicing with UAD 3.6 sample forms before they’re required.
? Communicate with clients and lenders about upcoming expectations and timelines.

Conclusion: Be Ready, Be Ahead

UAD 3.6 is more than a compliance update — it’s a transformation in how we communicate value. Appraisers who adapt early will not only stay ahead of regulatory requirements but also build trust with lenders and clients by showing preparedness, efficiency, and professionalism.

This is an opportunity to embrace the change, sharpen our reporting, and reaffirm the indispensable role of appraisers in the housing market. Ultimately if the residential appraiser will be performing assignments for mortgage lending its not if you will adapt but when.