Gearing Up for Production: Understanding the UAD 3.6 Limited Production Period

Hey fellow appraisers, John Anderson here. As we navigate the ongoing evolution of our industry, driven by Fannie Mae and Freddie Mac's (the GSEs) Uniform Mortgage Data Program (UMDP), staying informed is crucial. A significant milestone on the horizon is the Limited Production Period (LPP) for the Uniform Appraisal Dataset (UAD) 3.6 and the redesigned Uniform Residential Appraisal Report (URAR). This isn't just another testing phase; it's a critical step towards full adoption, and understanding it helps us prepare for what's coming.

What Exactly is the Limited Production Period?

Let's be clear: the LPP, scheduled to run from September 8, 2025, through January 25, 2026, is not "testing" in the traditional sense. It's an opportunity for a select group of lenders, along with their chosen vendors and appraisers, to use the new UAD 3.6 dataset and the dynamic URAR format in their actual production environment before it becomes widely available to the entire industry.

Think of it as an early access program for the live system. Lenders participating in the LPP will be submitting appraisals using the new standards for actual loan decisions. This allows them (and by extension, their appraiser partners) to experience the benefits and workflows firsthand while providing invaluable, real-world feedback to the GSEs before the broader rollout.

Why Should Appraisers Care About the LPP?

While participation is initiated by lenders, appraisers are integral to the process. If you work with a lender planning to participate in the LPP, you'll be among the first to use the new URAR format and UAD 3.6 standards in a live setting. This has several implications:

1. Early Experience: You'll gain hands-on experience with the dynamic URAR, which adapts based on property characteristics rather than relying on legacy form numbers.
2. Direct Feedback Loop: Your experiences and any challenges encountered will likely be relayed by your lender partners to the GSEs, helping refine the process before mandatory adoption.
3. High-Touch Support: Participants (lenders, vendors, and appraisers) will receive dedicated support from the GSEs during this transition phase.
4. Competitive Edge: Familiarity gained during the LPP can position you ahead of the curve when the broader industry transitions.

The benefits highlighted for lenders during the LPP often translate to advantages for appraisers as well:* One URAR, One UAD: Using a single, dynamic report structure for all property types.* Improved Review Process: The shift to more discrete data and less free-form text aims to streamline reviews (though it will take adjustment).* Reduced Revisions: The ability to check UAD 3.6 compliance before submitting the report can potentially minimize back-and-forth with clients.

What Does "Readiness" Look Like for Lenders (and Their Appraisers)?

The GSEs emphasize that readiness is paramount for LPP participation. Lenders need to demonstrate that they, their vendors (like Appraisal Management Companies - AMCs, and software providers), and their appraiser panels are prepared. Key readiness steps lenders must take include:

• Reviewing the Lender Readiness Kit and addressing potential business impacts.
• Implementing necessary operational changes.
• Ensuring staff (including reviewers) are trained on UAD 3.6 and the new URAR. (Training resources are available on the GSE UAD webpages).
• Conducting workflow and process testing with vendors.
• Verifying that their Loan Origination System (LOS) provider supports UAD 3.6.

As appraisers, our readiness involves understanding the new dataset, familiarizing ourselves with the dynamic URAR format through available training, and ensuring our software is updated to support UAD 3.6 when required. Tools that embrace modern data collection standards, like those aligned with the Uniform Property Dataset (UPD) principles which underpin much of this modernization, can also help. For instance, platforms like Valuemate, which facilitate digital data capture and automated floor plans, are built with this future state in mind, potentially easing the transition.

Lenders apply for the LPP by submitting a Lender Readiness Questionnaire, which assesses their organizational, operational, and technological preparedness, along with anticipated appraisal volume.

The Road Ahead

The Limited Production Period is a vital bridge between development and full industry adoption of UAD 3.6. Even if you aren't directly involved, understanding the LPP timeline and requirements provides insight into the final stages before the mandatory transition. It underscores the need for collaboration between appraisers, lenders, software vendors, and AMCs to ensure a smooth rollout. Keep an eye on communications from the GSEs and your lender partners as we move closer to September 2025.