The short version: The deadline has not moved, but some lenders may qualify for a temporary exception.
On September 30, Fannie Mae and Freddie Mac announced a temporary, one-time policy exception for lenders that cannot complete their UAD 3.6 implementation by the November 2, 2026, deadline. The mandate itself is not changing.
UAD 3.6 is the data standard behind the redesigned appraisal report. It replaces the familiar 1004, 1073, 1025, and related forms with a single, data-driven report.
Agents and loan officers: Your appraisal may come back in either format, depending on the lender. Some wholesale lenders will move to UAD 3.6 before or on November 2, while approved exception holders may continue accepting UAD 2.6 afterward. Ask your lender which format it requires.
Buyers and sellers: The way I value your home does not change. Only the way the data is packaged for the lender changes.
Not every loan type follows this timeline. The November 2 Fannie Mae and Freddie Mac mandate is not a universal deadline for every mortgage program. FHA, VA, and USDA have their own requirements.
I am prepared to deliver either format during the transition, but as previously noted the 3.6 report represents an unprecedented change for the appraisal industry as a whole, so whether you are working with me or another appraiser expect higher fees and extended turn times, especially in the short term. I am relieved that there is at least some softening of this deadline. It still seems that no one is fully prepared, and a ramp up (which this approach seems to lend itself to more) certainly seems like the more sensible option rather than the previous approach. And again, this only specifically applies to mortgage lending, so the current forms will continue to be fine for private work (divorce, estate, cash purchase, pre-listing, tax appeal). Let's not get ahead of ourselves, but as appraisers become more comfortable with the new format, you may begin to see some adoption for private work too.
Questions about serving your clients during the UAD 3.6 transition? I am always happy to talk. Call me at 404-245-7577.
Cameron Horne, GACR253993 Comp One Appraisal Services, Inc.
A recent article in Business Insider which was included in the Apple News Feed is causing some buzz in the appraisal world. It details the controversial role played by Appraisal Management Companies (AMC’s) in the business. It’s worth reading but is now behind a paywall. AMC's have positively contributed to the restoration of appraiser independence since their introduction in 2010 following the passing of the Dodd-Frank Wall Street Reform and Consumer Protection Act, but there are some AMC’s which engage in dubious practices. These include assigning appraisals to the lowest bidder and taking an exorbitant cut of the fee. Settlement Statements generally note an “appraisal fee” but don’t detail how much the appraiser was actually paid and the portion of the fee that went to the AMC. Appraisers should be paid fees that are “reasonable and customary” for their market, and, in my view, a reasonable target for AMC’s is around 20% to 25% of the total fee paid. If this fee is significantly greater than that, there is cause for concern. I could digress as to my experience in the appraisal space prior to 2010 and my experience since. Certainly, lower volume has put pressure on all players in the appraisal industry, but it remains that most of the appraisal fee should go to the appraiser on the ground. The article proposes that the appraisal fee should be broken down in the settlement statement to note the fee that went to the AMC and the fee that went to the actual appraiser. I think this separation would be a good practice and provide greater transparency to the consumer. Contact Comp One Appraisal Services today and put our local expertise to work for you. Based in the Globe Building at Peachtree Dekalb Airport, we are the perfect resource for attorneys, agents, homeowners, and lenders. Thanks for reading! Got an appraisal issue or question? Call my Appraiser On-Call For You Hotline at 404-245-7577.
Twenty-two years is a long time folks! I began my real estate appraisal career in 2002. Some of you may remember those days. It was the "refi boom" and the market was hopping. That was the upside. Then there was the downside which was the rampant mortgage fraud which we had to navigate leading up to the 2007 crash. In some areas you really had to be careful that the comps you picked in appraisal reports were arms length transactions. Talk about a time consuming headache! A lot of people ask me if things were tough after the meltdown, but fortunately I was still busy, appraising a lot of HUD owned homes for one thing. As a matter of fact, I started my own company in 2007, and I'm still here.
I still remember being proud to say that I had been doing this five years, but over twenty definitely is something else. And, yes, after that much time you can honestly say you've pretty much seen it all; done a lot of things right, made some mistakes (we learn!), appraised the wrong house (it happens!), had clients go out of business, had great new clients show up seemingly out of nowhere, worked around the clock on huge deadlines, and watched the tumbleweeds blow and wonder if another order will ever show up.
Being an appraiser can be a grind, but there are a lot of upsides: being your own boss, making your own hours, meeting new people and having the priveledge to be of service. Thanksgiving was this past Thursday, and if there is one thing I can say that has remained constant throughout my career in this profession, it's that I'm always grateful to be doing what I do.
Contact Comp One Appraisal Services today and put our local expertise to work for you. Based in the Globe Building at Peachtree Dekalb Airport, we are the perfect resource for attorneys, agents, homeowners, and lenders. Thanks for reading! Got an appraisal issue or question? Call my Appraiser On-Call For You Hotline at 404-245-7577.