This fall, Fannie Mae and Freddie Mac will begin testing the next big change: UAD 3.6. In September, a limited production phase will launch with a small group of lenders. On Jan. 26, 2026, it will be open for optional use across the industry. Mandatory adoption of the new Uniform Residential Appraisal Report (URAR) begins Nov. 2, 2026. That may sound far off, but those involved in the appraisal process need to prepare now.

The UMDP update requires redesigned forms and a new UAD built on the MISMO 3.6 standard. The question is whether the industry will be ready, given its track record with major transitions.

How UAD 3.6 changes the way appraisals are produced

The UAD standard had been crafted around Mortgage Industry Maintenance Standard Organization's Property and Valuation Services version 2.6, said Elizabeth Green, senior vice president, valuation solutions at ServiceLink, who is also also the chair of MISMO's Property and Valuation Services Community, which put together the new Appraisal Procurement Dataset Specification.

"This particular approach for UAD 3.6 introduces a redesign of the uniform residential appraisal report," Green said, the report more commonly known as Fannie Mae Form 1004. "The first UAD did not; the first UAD was just adding a dataset to the existing published boilerplate forms used for appraisal by the GSEs."

Most other forms in the UCDP already use MISMO 3.0 or higher, Green noted. MISMO 2.6 lacked the functionality of newer versions, but the GSEs used it at the time.

The current process is cumbersome, said Rebecca Clapham, COO of Citywide Home Mortgage, who welcomes the shift. "It changes the amount of back and forth on data that you have to go back and get from the appraisers when you're underwriting a file," Clapham said. "It streamlines the process so that everything is in the file using one form rather than several outdated forms."

Clapham added that lenders will see more consistent data, reducing variation between appraisers.

Introducing the new Uniform Residential Appraisal Report

To design the URAR, the GSEs tapped the same creator behind the Loan Estimate and Closing Disclosure forms, which are part of the TILA-RESPA Integrated Disclosures (TRID), "Now the appraisal report that the consumer is entitled to have a copy of will look very much complimentary to the other consumer-facing documents," Green said.

The update also consolidates three decades of appraisal templates. Form numbers like 1004 are being retired. "The data template is all consolidated onto one truly universal uniform appraisal structure," Green said.

How the appraisal community contributed to the process

The GSEs sought feedback from groups like the Appraisal Institute, a move welcomed by Bill Garber, its director of communications and marketing.

 "Most appraisers are eager to dive into this process," he said.

The redesign removes irrelevant fields and lets appraisers complete more data in the field rather than back at the office.But it is a heavier data request on the appraiser than before, and concerns remain over how that data will be used.

Garber noted that Fannie Mae and Freddie Mac have become more conservative, reducing use of appraisal waivers, though it is hard to say if that will continue..

What the change means for appraisers

"Lenders need to be able to ensure that they can request the correct type of appraisal for the type of property that's underlying the loan that they're doing," Green said. Training and policy updates will also be critical, since the URAR is "much more expansive" than the six-page static form now in use.

Anywhere the appraisal touches origination — procurement, review, transmission, or archiving — could be affected, Green added.

For appraisers, the shift is big. "The way appraisers have been working for at least the last 20 years has been static when it comes to writing reports for conforming mortgages," said Shawn Telford, chief appraiser at Cotality. The new URAR allows them to "report their observations and their analysis in a much more standardized manner."

What won't change, Telford said, are expectations for independent, objective analysis.

With the new format, much of what used to be long narrative text will be broken into standardized data fields. That makes it easier for lenders to find key information and for automation to process it.

It also means all of the touch points in the origination process which deal with property valuations need to be addressed. 

Steps lenders can take to ease adoption

Cotality believes lenders, no matter if they are large, mid-sized or small, need to have "an active, engaged approach" to bringing UAD 3.6 on board.

Lenders need to map every system that touches the valuation process, from appraisal ordering to borrower payments. Each should be assigned an owner to determine what changes are needed for UAD 3.6.

After the list is created, the lender needs to see if that system is internally based or from a vendor, and then assign "an owner" in charge of determining what, if anything, needs to be done with that piece of technology for the lender to be ready for the new UAD.

"That's the starting point, because once you have that inventory, you can then allocate additional resources and whatnot to figure out what you need," Telford said.

But do lenders even know they have to change?

The industry needs to be prepared to commit a lot of resources in order to be ready for UAD 3.6, said Vladimir Bien-Aime, president and CEO of appraisal technology company Global DMS. "Some people are not really even aware, especially on the lending side, of the ramifications of some of these changes," he said.

Global DMS itself must update its review technology to handle MISMO 3.6. "Our entire process for the last several decades is going away, and I think that's really hard to get your head around," Bien-Aime said.

He warned that the long runway to November 2026 may give the industry "a false sense of security."

As a result they say, "I got plenty of time, and our industry is notorious for having plenty of time," Bien-Aime said, referring to the mortgage industry's propensity for putting things off to the last minute as it did with the initial UCDP adoption and for TRID.

For the appraisers themselves, the change presents a completely different way of doing business. But it could also have a devastating impact on the ranks.

As many have noted, the median age of appraisers keeps rising; in 2022, it was 50. Between 2008 and 2015, a decade ago, the number of active appraisers slipped 28%. The various entry requirements, including apprenticeship requirements, are holding back younger generations from entering the profession.

Some appraisers currently in the business are likely to be reluctant to change, electing to leave, Bien-Aime said.

How tech vendors are preparing

Other vendors are already adapting. ICE Mortgage Technology updated the Uniform Loan Delivery Dataset to align with UAD 3.6 and is working with AMCs and lenders on the transition.

The company, which operates the Encompass loan origination system, said it is working with its appraisal partners, appraisal management companies and lenders to provide them with the support they need to adapt to these changes and ensure a friction-free transition.

Restb.ai partnered with True Footage to apply its AI-based property condition scoring to appraisals. The product works with both UAD 2.6 and 3.6.

Tony Pistilli, Restb.ai's president of valuation, compared the rollout to untangling a string of Christmas lights: "If one bulb on the string goes out, the entirety goes dark."

By November 2026, he expects most participants to be live on 3.6, though the early adoption period may see delays.

Training tools for mortgage lenders

The GSEs have released 17 training modules to support the rollout. Donna Merritt, SVP of quality control and collateral risk at Atlantic Bay Mortgage Group, is reviewing them to update policies, vendor integrations, and fee schedules. Atlantic Bay is not part of the limited production period and expects to run dual processes until late 2026.

Citywide, also sitting out the pilot, hopes to be among the first fully ready lenders but is cautious about implementation.

She is "identifying what policies and procedures need to be updated, working with our vendor to determine what API needs to be adjusted, and looking at the fee schedule, [which] will be slightly different," Merritt said. It has a lot to look at and Atlantic Bay may or may not be ready by January, she said. Its appraisal vendor won't be until then anyhow.

Atlantic Bay is not participating in the limited production period.

Running dual processes much of 2026

Between January and November, she anticipates the company would probably be split 50-50 as to the percentage of new versus old appraisal forms which come in for underwriting.

This means Atlantic Bay will have to run dual processes for much of next year.

Citywide is also not a part of the limited production period, Clapham noted.

Still, Citywide, which is a Rate company, anticipates being one of the first lenders ready to completely roll out the process and use it prior to the mandatory date. But it also plans to be cautious.

"We want to make sure everything's ready so there'll be less impact to the borrower and less glitchiness, if I can use that word, for the borrowers," Clapham said.

Even the AMCs are excited about the changes because it should eliminate the inconsistencies they get from their appraisal panel as well, Clapham added.

If anything, borrowers should be getting a better experience with less confusion about the valuation process, an area which has been contentious in recent years over allegations of racial bias.

A "better mousetrap"

UAD 3.6 and the URAR are "a better mousetrap, but it's dramatically different than what they have today," Green said. Whether it spreads beyond the GSEs to government and private-label channels is still uncertain.

Still, Green argued the benefits are clear: the report is easier to read, better organized, and more consumer-friendly. "It will be a benefit to the mortgage industry, simply because it's going to do a better service to our customer, the consumer," she said.