I've spent decades as an appraiser, navigating changes in standards and technology, but the upcoming UAD 3.6 update from Fannie Mae and Freddie Mac is one of the most significant shifts I've seen. If you're used to older versions like UAD 2.6 and traditional forms such as the 1004 and 1073, understanding this UAD update will be essential for your workflow.
Why the Transition to UAD 3.6 Matters
For years, we've made do with outdated forms originally designed for typewriters—clearly not suited for today's market complexities and technological expectations. Common issues with older UAD versions included:
- Multiple static forms causing inconsistencies.
- Excessive free text, making data analysis difficult.
- Inability to adapt to unique property types and modern valuation methods.
Key Changes in UAD 3.6
UAD 3.6 introduces a single, dynamic Uniform Residential Appraisal Report (URAR). Instead of selecting from forms like 1004 or 1073, you'll now input property-specific data, and the new URAR dynamically generates relevant sections.
Here's a clear breakdown:
| Feature |
Previous UAD (2.6) |
UAD 3.6 |
Impact on Appraisers |
| Report Format |
Multiple static PDF forms |
Single, dynamic URAR |
Simplified report generation |
| Data Structure |
Free-text heavy with extensive addenda |
Structured data points, standardized entries |
Less ambiguity, clearer reporting |
| Technology |
Based on MISMO v2.6 |
Modern MISMO v3.x standards |
Enhanced compliance and error checking |
| Property Types |
Inconsistent handling of atypical types |
Unified handling across residential types |
Easier appraisal of condos, ADUs, multifamily |
| Report Identification |
Defined by form numbers |
Driven by property characteristics |
Clearer identification by property details |
Benefits of Adopting UAD 3.6
While adjusting to the new standard will take some effort, the potential advantages are significant:
- Efficiency: One adaptable report reduces complexity.
- Reduced Revisions: Pre-submission compliance checks through new GSE APIs.
- Better Reporting: Enhanced ability to address complex and atypical properties.
- Future-Proofing: Aligns appraisal reports with ongoing industry digitization.
UAD 3.6 Timeline
To effectively prepare, keep these key dates in mind:
- Q4 2024: GSE training resources available.
- Sept. 8, 2025: Early adoption period starts.
- Jan. 26, 2026: Broad adoption period begins (both UAD 3.6 and 2.6 accepted).
- Nov. 2, 2026: UAD 3.6 becomes mandatory for all new submissions.
- May 3, 2027: UAD 2.6 fully retired.
Steps You Should Take Now
- Utilize Training Resources: Visit the Fannie Mae UAD and Freddie Mac UAD pages for official guides and webinars.
- Contact Your Software Vendor: Confirm their timeline for UAD 3.6 implementation and available training.
- Study New Concepts: Emphasize understanding property characteristics over traditional form numbers. Resources like “Functioning without Form Numbers” can be particularly helpful.
Final Thoughts
The shift to UAD 3.6 isn't just another incremental update—it's a fundamental restructuring of how we do appraisals. Having been through numerous industry changes myself, I recommend embracing this evolution early. Understanding and adapting to UAD 3.6 now will ensure your appraisal practice remains competitive and efficient moving forward.
