The new UAD 3.6 Uniform Residential Appraisal Report is replacing traditional boilerplate forms which are currently being used, such as the Fannie Mae 1004.

But heretofore, this change was limited to the conforming markets, with a limited production phase starting in September, working its way up to a planned mandatory adoption by November 2026.

This move by the FHA is welcome news, said Elizabeth Green, senior vice president, valuation solutions at ServiceLink. Green is also the chair of the Property and Valuation Services Community for the Mortgage Industry Standards Maintenance Organization, which put together the new Appraisal Procurement Dataset Specification.

"The implementation by FHA will also mean more efficiencies in the process when transactions move from conventional to FHA and vice versa during the origination process, which in turn impacts any corresponding valuations that are already in play when the loan type changes," she said.

The government-sponsored enterprises incorporated requirements that the FHA and other agencies like the Department of Veterans Affairs have into the new appraisal formal, according to Green.

NMN reached out to the VA for comment regarding its plans but had not received a response by deadline. 

The most recent Mortgage Bankers Association Weekly Application Survey gives FHA a 19.1% market share with VA at 13.3%. USDA has the smallest share at 0.5%. Conventional applications make up two-thirds of the market, but MBA does not break those out into conforming and nonconforming.

Nonconforming lenders are also expected to adopt the new URAR, but each investor has its own requirements and while many mirror the government-sponsored enterprises, they can diverge.

The FHA, in information bulletin 2025-42, said its adoption of UAD 3.6 will begin in early Spring 2026. A timeline for the transition, as well as updated policies and technology specifications, will be announced later this year.

The FHA said the adoption of the new appraisal format would build on its collaboration with the government-sponsored enterprises, as well as the investment by its parent agency the Department of Housing and Urban Development in the FHA Catalyst platform during President Trump's first term.

"The implementation of this industry-wide initiative will preserve FHA's alignment with the industry and strengthen its collateral risk management capabilities," the memo said.

However, like in the conforming market's adoption of the new format, FHA lenders could find themselves running dual processes for a time as the agency will still accept appraisals using UAD 2.6 during the transition period.

"FHA is committed to providing stakeholders with reasonable time to develop, test, and prepare their technology solutions before mandatory adoption, recognizing that a longer timeframe is essential to accommodate required technology updates," the memo said.