What Every REALTOR® Should Know About UAD 3.6
An important industry change is underway, and understanding it can help you better prepare your buyers and sellers.
What's Changing?
Fannie Mae and Freddie Mac are introducing UAD 3.6, a major redesign of residential appraisal reporting. The familiar appraisal forms are being replaced by a more detailed, standardized report called the Uniform Residential Appraisal Report (URAR).
The goal is to improve consistency, transparency, and the quality of property information used in mortgage lending.
What Does This Mean for REALTORS®?
1. More Detailed Property Information
Appraisals will include more structured information about property condition, renovations, features, and characteristics. Accurate property descriptions and documentation will become increasingly important.
2. Greater Attention to Property Condition
Appraisers will document property conditions and deficiencies more systematically. Visible damage, incomplete repairs, and other concerns may generate additional lender questions or review requirements.
3. Potential Changes to Appraisal Timelines
Appraisers, appraisal management companies, and lenders are adapting to new technology and reporting requirements. Some transactions may experience longer turnaround times or additional clarification requests during the transition.
4. A Different Appraisal Report
The new report may look substantially different from the traditional appraisal. Buyers and agents should expect a more detailed format, although the basic principles of determining market value remain unchanged.
How Can REALTORS® Prepare?
Document improvements: Have information available about renovations, upgrades, permits, and significant repairs.
Verify listing information: Pay particular attention to square footage, finished versus unfinished areas, property features, and improvements.
Disclose known property concerns: Make relevant condition information available early rather than waiting for the appraisal.
Plan ahead: Coordinate with the lender regarding appraisal timing, especially when due diligence and closing deadlines are tight.
Communicate with clients: Explain that appraisal reporting is changing, but the purpose remains the same—providing an independent opinion of market value.
Due Diligence Periods in North Carolina!
Best Practice: Set realistic Due Diligence Periods for your buyers that account for potentially longer turn times for appraisal reports. Consider a clause that allows for extensions should there be a data-related issue that is beyond the appraiser’s control.
When Does This Take Effect?
November 2, 2026: UAD 3.6 became mandatory for new appraisal submissions to Fannie Mae and Freddie Mac, except for lenders granted temporary exceptions.
May 20, 2027: All new Fannie Mae and Freddie Mac appraisal submissions must use UAD 3.6.
During the transition, agents may encounter both the traditional and new appraisal formats. The lender determines which format is appropriate.
THE BOTTOM LINE
Better information, better preparation, fewer surprises.
UAD 3.6 does not fundamentally change how homes are valued. It changes how property information is collected, documented, and reviewed.
For REALTORS®, the best approach is simple: accurate listing information, good documentation, and early communication with your lending partners.
7 Locks Lending LLC
Locally Owned & Operated | Independent Mortgage Brokerage
www.7lockslending.com | NMLS #1929338
Educational information only. Appraisal requirements and timelines may vary by lender, investor, and loan program. Updated November 2026.
