What is the big deal about the change in appraisals that is coming soon?
QUESTION: I just scheduled an appraisal, and the appraiser said that it will take a lot longer than usual because she is using a brand-new system. She also told me that any appraiser who is not making the switch right now is at risk of causing closing delays. Can you tell me what is going on? What is the big deal, and why are appraisers having to make this switch?
ANSWER: Beginning on November 2, 2026, all appraisals submitted to Fannie Mae and Freddie Mac must use the new Uniform Appraisal Dataset (UAD) 3.6, which produces a Uniform Residential Appraisal Report (URAR). Any appraisal that is submitted using the previous UAD 2.6 forms will be rejected beginning on that date. This means agents should be double-checking with appraisers right now to make sure they are using the new system.
UAD 3.6 is a dynamic system, meaning that it changes based on what kind of property is being appraised. This is very different than UAD 2.6, which offered many different forms for appraisers to choose from to complete the appraisal report (for example, Form 1004 for single-family homes or Form 1073 for condos). This means UAD 3.6 replaces over a dozen forms and consolidates them into a report that is easier for mortgage lenders to read electronically. The new appraisal report, URAR, is also easier for consumers to read, incorporates pictures throughout instead of just at the end, uses less jargon, and standardizes more elements of the home to try to make appraisals more uniform.
The shift to UAD 3.6 is a major one. Many appraisers report that it takes them about ten interactions with the new system to get used to it. And it is common for appraisers to reach out to brokers on old transactions to get information needed for a UAD 3.6 appraisal that does not exist on a UAD 2.6 form. Lenders also have a learning curve when it comes to reading and understanding the URAR. However, until most appraisers move to the new system and the URAR, lenders will not get the experience they need to understand and use the new report.
Over the next few weeks, it is very likely agents will be writing contracts with a closing toward the end of October and early November. Obviously, real estate transactions always present the possibility of delays and extensions. However, the last weeks of this coming October could be much worse than usual unless this change begins to happen in earnest. Not all appraisers are moving to the new system, and this means appraisers who are using UAD 3.6 may be very overwhelmed in the coming weeks. Appraisers who are waiting until the end of October to switch may take longer than appraisers who have already had experience with the new system. In all, these sorts of pressures and delays may affect a lot of contracts being written right now.
It is hoped that this change will help make appraisals more consistent. Until this transition is completed, however, agents should consider informing their clients of the potential for delays and negotiating purchase contracts accordingly.
Release Date: 9/17/2026
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