Residential Appraisal Update: UAD 3.6 and the Temporary Policy Exception
A major change to residential appraisal reporting is approaching, but a recently announced temporary policy exception is creating some confusion about what happens on November 2.
Here is what REALTORS® need to know.
Beginning November 2, 2026, Fannie Mae and Freddie Mac will require the new Uniform Appraisal Dataset (UAD) 3.6 for new appraisal reports initially submitted to the Uniform Collateral Data Portal (UCDP), unless the lender has received a temporary policy exception.
The November 2 implementation date has not been postponed.
What is the UAD 3.6 Appraisal Report?
UAD 3.6 replaces the familiar legacy appraisal forms (used for the last 25 years) with a new, more data-driven appraisal report that collects much more detailed property information.
For REALTORS® and consumers, the transition could mean a more detailed property inspection, additional questions about the property and transaction, and potentially longer appraisal and review times as appraisers, lenders, appraisal management companies, and other industry participants adjust to the new system.
What changed?
Fannie Mae and Freddie Mac recently announced a temporary policy exception for eligible lenders that need additional time to complete their transition to UAD 3.6.
Lenders receiving the exception may continue submitting appraisals using the current legacy UAD 2.6 format through May 19, 2027.
Beginning May 20, 2027, new appraisal submissions to Fannie Mae and Freddie Mac must use UAD 3.6.
What does this mean for REALTORS®?
For several months, REALTORS® may encounter both the current appraisal format and the new UAD 3.6 appraisal report.
The appraisal format is determined by the lender's assignment requirements. REALTORS® and consumers do not need to determine which format should be used.
It is also important to understand that an appraiser completing a legacy-format appraisal during this period should not automatically be assumed to be unprepared for UAD 3.6. An appraiser who is fully UAD 3.6 ready may still be instructed by a lender to complete an assignment using the legacy format.
How can REALTORS® help?
Good communication and accurate property information will become even more important.
REALTORS® can help the appraisal process by providing accurate and specific information concerning:
- Recent renovations and improvements
- Property features and amenities
- Sales concessions and financing terms
- Known property conditions or unique characteristics
- Relevant information about the transaction
Buyers should also be encouraged to discuss appraisal requirements and anticipated timelines with their lender early in the transaction.
What about FHA, VA and USDA?
The November 2 requirement discussed above applies to Fannie Mae and Freddie Mac conventional lending.
FHA, VA and USDA have their own appraisal policies and implementation schedules. Their transition to UAD 3.6 should not be assumed to follow the same November 2 timeline unless announced by the respective agency.
The Bottom Line
November 2 remains an important date for UAD 3.6. The temporary exception does not cancel or postpone the transition.
Instead, it allows eligible lenders additional time to complete their transition. As a result, REALTORS® should expect a period when both legacy and UAD 3.6 appraisal reports are being used.
Louisiana REALTORS® will continue monitoring the transition and providing members with updates as additional guidance becomes available.
Louisiana REALTORS® is also planning a follow-up webinar to discuss the latest UAD 3.6 developments, what REALTORS® are seeing in transactions, and what these changes mean for agents and their clients.
