Freddie Mac and Fannie Mae are rolling out some big updates to the appraisal process with UAD 3.6. These updates aren’t just tweaks—they’re designed to make the whole appraisal process more accurate, consistent, and user-friendly. If you’re in the mortgage or appraisal industry, here’s a breakdown of what UAD 3.6 involves, the recent September 2024 changes, and how you can start preparing.
So, What Exactly is UAD 3.6?
The Uniform Appraisal Dataset (UAD) 3.6 is a new set of standards for how appraisals are reported. Freddie Mac and Fannie Mae designed it to improve data quality and make reports more uniform. One of the standout changes is the move to a dynamic Uniform Residential Appraisal Report (URAR), which replaces multiple forms with one flexible format. This means appraisers can use a single report structure, no matter the type of residential property they’re evaluating.
Key Changes in the September 2024 Update
- Saying Goodbye to the Property Value Trend Field
In UAD 3.6, the Property Value Trend field is gone. Removing it should help streamline the reporting process, giving appraisers fewer redundant details to enter and focus on what’s most relevant. - Adjustments for Reconsideration of Value (ROV)
The dataset now includes support for Reconsideration of Value (ROV), which is becoming more important with recent regulations. This means there’s now a standardized way to handle ROV requests, making it easier to comply with industry standards. - Adding More Scenarios
Two new scenarios have been introduced in UAD 3.6. These additions give appraisers more options to accurately reflect different types of properties and situations, ensuring reports are more tailored and relevant. - Harmonizing Supporting Documents
Key documents like specifications and iGuides have been updated to align with UAD 3.6. This ensures that any supporting materials you refer to are in sync with the new standards, helping to avoid any misalignment. - Clarifications and Minor Corrections
The latest update also includes several small tweaks and clarifications to make the dataset easier to use. These adjustments should make it clearer for appraisers to follow the updated guidelines.
Key Dates for UAD 3.6 Implementation
Freddie Mac and Fannie Mae have laid out a timeline to help the industry gradually adopt UAD 3.6:
- November 18, 2024: Training Starts
Training materials become available for appraisers, lenders, and other professionals to get acquainted with UAD 3.6.
- June 4, 2025: GSE Policy Update Release
New policy updates from the Government-Sponsored Enterprises (GSEs) are published to align with UAD 3.6.
- July 28, 2025: ULDD Mandate Begins
The Uniform Loan Delivery Dataset mandate starts, supporting the data collection standardization for loan deliveries.
- September 8, 2025 – January 25, 2026: Limited Production Phase
Select lenders and software providers will begin using UAD 3.6 within a controlled testing environment.
- January 26, 2026 – November 1, 2026: Broad Production Phase
All lenders can adopt UAD 3.6, though UAD 2.6 remains available during this phase.
- November 2, 2026: UAD 3.6 Becomes Mandatory
All lenders are required to use UAD 3.6 from this date.
- May 3, 2027: End of UAD 2.6
UAD 2.6 is retired, leaving UAD 3.6 as the sole standard.
How to Get Ready for UAD 3.6
Switching to a new system requires planning. Freddie Mac and Fannie Mae have rolled out some resources to make the transition easier:
- Lender Readiness Kit
This kit, part of the Partner Playbook, offers a roadmap with best practices and milestones to help lenders align with UAD 3.6.
- Legacy Forms Mapping Guide
A helpful guide to show how older forms map to the URAR’s new structure. You can access the mapping guide here.
- Sample Scenarios and XML Files
Check out sample scenarios and XML files to see UAD 3.6 in action with real-world applications.
- Training Resources
Training sessions and documents are available, covering everything from new fields and compliance standards to the report structure.
Using these resources will help you get up to speed so that your team is ready for UAD 3.6 when it goes live.
Extra Notes on the September 2024 Update
- Revision Tracking: Each document now has a revision history, making it easy to track updates and changes.
- Highlighting in Excel Files: Changes in Excel-based resources are marked in light yellow, so you can quickly spot updates.
- Consistent Change Numbers: Shared Change # markers are used across documents for easy cross-referencing.
Why UAD 3.6 Matters for the Appraisal Industry
These updates bring several benefits to the appraisal and mortgage sectors:
- Better Data Consistency
UAD 3.6’s standardized fields and flexible reporting format aim to reduce discrepancies, making appraisal data more reliable.
- Streamlined Process
The updated reporting format integrates photos and allows for flexible fields, making reports more accessible and easier to navigate.
- Built for the Future
UAD 3.6 lays a solid foundation for future updates, helping the appraisal industry stay nimble as data needs evolve.
Final Thoughts on UAD 3.6
The UAD 3.6 update represents a significant shift for appraisers and lenders alike. With the mandatory deadline approaching, now’s the time to start preparing. By staying proactive, taking advantage of available resources, and getting familiar with the changes, the industry can ensure a smooth transition that benefits all parties involved.
