We know everybody has been anxiously counting down the days to the start of UAD 3.6 Limited Production on September 8th. We’re gratified so many of you have been working to stay informed, by attending our webinars, speaking with our staff, and taking CE courses on the new UAD. Hundreds of you even signed up for our UAD 3.6 development preview, trying out the new dynamic URAR in Appraise-It Pro and giving us your feedback.
Though our development team has put in an extraordinary amount of effort since the UAD 3.6 specification was published in the spring of 2023, we need a little more time to finalize our initial release.
On September 8th, we will expand our private development preview into a public preview, releasing the new dynamic UAD 3.6 reports to all Appraise-It Pro users. You’ll be able to open them up alongside all your existing reports and start getting familiar with them, though you won’t be able to create MISMO 3.6 XML quite yet.
As soon as we have obtained our vendor verification from the GSEs, confirming our XML and PDF output complies with the UAD 3.6 specification, we will release another update that allows all Appraise-It Pro users to generate UAD 3.6 output. We hope to have that available to you by the end of September, at which point you’ll be able to accept UAD 3.6 orders from any early adopter clients.
This will mark the beginning of our public beta period, and in the following months, we’ll continue to roll out updates and features for the new UAD reports as quickly as we have them ready for you. You can review our projected UAD 3.6 roadmap here.
We know how important it is to you to have access to the new UAD 3.6 as soon as possible, so you can feel comfortable and confident when that first UAD 3.6 order appears in your inbox. We’re doing everything in our power to get updated software in your hands so you can be ready.
Thank you for choosing SFREP as your appraisal software partner during this pivotal time for our industry. We don’t take your trust in us lightly.
Best regards, Remington Jones Chief Executive Officer Software for Real Estate Professionals, Inc.
P.S. Here are some answers to frequently asked questions we’ve been hearing about UAD 3.6. If you have more, please don’t hesitate to contact us.
What can I do to prepare for UAD 3.6?
Take a look at the materials Fannie Mae and Freddie Mac have published on their UAD websites. Appendix D-1 contains sample scenarios that show off how the new dynamic URAR can handle single family, 2-4 unit, condo, manufactured, and co-op assignments. (Note they are not representative of “real” appraisals – they’re just meant to demonstrate the new report’s flexibility.) Appendix F-1 provides guidance on how to write the new URAR. They have also published a free 4-hour training session that goes over the dynamic reports and new dataset.
Once you install the public preview of the new URAR in Appraise-It Pro, try recreating some of the GSEs’ sample scenarios in it to help familiarize yourself with the new report structure. We’ll be including prepopulated sample scenario report files to give you a starting point. You could also try rewriting some of your existing reports in the new format, or performing an appraisal of your own home as practice.
CE is also available from all major providers on the new UAD.
Do I have to “go mobile” for UAD 3.6?
Using a mobile data collection app in the field isn’t a requirement of the new format, but it may streamline your workflow. Today, you can use Inspect-a-Lot to get used to a mobile workflow with your existing assignments. Moving forward, we will have a new mobile solution for you that will work with both existing report types and the new URAR, but we’ll also have resources to help appraisers adapt to UAD 3.6’s requirements if they aren’t ready to hang up their trusty clipboard just yet.
Will UAD 3.6 be in Appraise-It Classic?
Unfortunately, it wasn’t possible to build our advanced new dynamic report engine into Appraise-It Classic’s older framework. You’ll need to move to Appraise-It Pro – keeping access to all your existing reports, databases, and so on, but also gaining new features like the dynamic UAD 3.6 reports.
Appraise-It Pro is already included in your subscription at no extra charge, and you can download and install it side by side with Appraise-It Classic while you transition.
SFREP now offers custom-built websites designed specifically for appraisers and no tech skills are required. Whether you’re looking to boost your online presence or simply streamline how clients reach you, we’ve made it easier than ever.
Simple Pricing Websites are just $25/month when added to Silver or Gold service plans. Better yet, they’re included at no extra charge with the Appraise-It Pro Platinum plan. Setup is completely free, and you won’t pay a thing until your site is finished and live.
We Handle Everything No need to struggle with web design or content. After some short email back-and-forth and some information provided by you, our team will design your site and write your content for you. Prefer to provide your own copy? That works too. Throughout the process, you’ll work one-on-one with SFREP Communications Director Matt Johnson, your dedicated contact via email or text.
Professional Details Included
We’ll register a new domain for you or move your current domain to our servers—so you can stop paying for separate hosting.
Already have a logo? Great—we’ll use it. If not, we’ll apply a clean, professional design from our library of generic logos.
A built-in contact form ensures leads go straight to your inbox.
Need changes later? Just email Matt.
Ready to Get Started?
Visit websites.sfrep.com to choose a template (we can even walk you through it over the phone). Then fill out the online web form so we can get started.
Your new professional website is just a few clicks away!
FNMA and FHLMC have published new guidance around market analysis in an effort to increase consistency and clarity. FHLMC’s goes into effect for reports dated on or after February 4, 2025, and FNMA’s goes into effect for reports dated on or after March 1, 2025.
Definitions Updates
Two terms now have standardized definitions:
neighborhood: a congruous group of complementary land uses
market area: the geographic region, for a subject property, from which most demand comes and in which most of the competition is located
Market Condition Adjustments
The GSEs are emphasizing the importance of analyzing comparable sales for any changes in market conditions between the contract date of the comparable sale and the effective date of the appraisal report, pointing out that a market condition adjustment for a particular comp may differ from the overall market trend.
For example, your market may have fluctuated up and down over the past 12 months, and averaged a 3% increase overall. However, a comp that sold six months ago may have been at a market peak and a comp that sold three months ago may have been at a market trough, so a 3% adjustment may not be supportable for either of them.
The GSEs expect supportable time adjustments, backed by evidence provided by commonly acceptable practices such as paired sales, statistical analysis, home price indices, or modeling. Appraisal reports should include an explanation for the reasoning behind any adjustments (or lack thereof). There is no specific requirement for particular charts or graphs, but graphical figures may help illustrate your support.
What do I do?
If you are already including explanations and support for your adjustments, you are already addressing the GSEs’ concerns.
If you haven’t been making supportable market conditions adjustments, or aren’t sure your support is adequate, we have some resources to help you. We can’t make any one-size-fits-all recommendations, or tell you exactly what you need to do — every market is different, and only you can determine what works best for you — but we can offer some general advice and suggestions.
If you could use a refresher on performing market analysis and deriving supportable adjustments, continuing education courses are available online from providers like McKissock and Appraiser eLearning. Other resources for self-education are also available online: for example, George Dell, SRA, MAI, ASA, CRE has published relevant webinars on his Valuemetrics Appraiser Education YouTube channel, and Jim Amorin, CAE, MAI, SRA, AI-GRS, ASA, CDEI has published an in-depth article on supporting market conditions adjustments on his LinkedIn account.
Our Market Analysis Service can help you identify trends in your market via MLS data. If you need further help calculating market adjustments and supporting your conclusions, there are many third-party tools available that specialize in this area. Aloft, Spark, DataMaster, and Appraiser Genie integrate with Appraise-It Pro to transfer data into your report for you. Others, like Synapse and GandySoft, don’t integrate directly with Appraise-It Pro, but you can insert their output into your report addenda manually.
Once you know what your adjustment(s) should be, slash commands offer a quick and easy way to insert individual adjustments throughout your comparison grids, and Appraise-It Pro v.3.3 introduces a new date of sale/time adjustment calculator panel – go to Support and select Check for Updates to ensure you’re up to date.
Once your adjustments are entered, our Adjustments Sensitivity Analysis tool is included with Appraise-It Pro and can help demonstrate your adjustments are appropriate.
The Adjustments Sensitivity Analysis tool in Appraise-It Pro
For more information about the GSEs’ guidelines and guidance, see:
FNMA Selling Guide announcement SEL-2024-07, Appraisal Market Areas
FNMA Selling Guide section B4-1.3-03, Neighborhood Section of the Appraisal Report
The real estate appraisal industry is about to experience a significant transformation. Fannie Mae and Freddie Mac have jointly unveiled an ambitious overhaul of the Uniform Appraisal Dataset (UAD) to modernize and streamline the appraisal reporting process.
Though this new version of UAD has been colloquially called UAD 2.0 by many in the industry, it is officially versioned as UAD 3.6.
Let’s dive into the details of the new UAD and its impact on appraising.
What’s changing?
A lot.
The familiar lineup of individual numbered appraisal forms (such as the 1004, 1073, and 2055) is going away. Instead, the new Uniform Residential Appraisal Report (URAR) arrives as a flexible, intelligent report. It dynamically adapts based on property characteristics, eliminating the need to select property-specific forms up front. Whether it’s a single-family home, condo, or other property type, the URAR adjusts seamlessly.
Appraisers will also be able to capture more granular details about the home. Each room’s condition can be reported individually, including updates, flooring, and appliances. Exterior details, including information about garages, pools and sheds, are also collected in a robust manner. Separate ratings for interior and exterior conditions provide a more complete picture.
No more additional comment addendum pages! The current reports can often be difficult to read, especially for the average home consumer. Constantly having to flip back and forth between the main form of the report and an additional comments page can be frustrating and hard to follow. The new URAR integrates commentary directly within relevant sections. Appraisers can provide insights right alongside data, photos, maps, or figures. This approach enhances the narrative flow and keeps readers from getting lost flipping back and forth between pages.
Finally, reports now open with digestible summaries of key details. The sales grid dynamically emphasizes useful comparative information between the subject property and comparables. Similarities and differences become transparent at a glance.
When is this happening?
In some ways, it’s been happening for years already. In 2018, Fannie Mae and Freddie Mac initiated a feedback program with all stakeholders in the mortgage industry, from lenders to appraisal management companies to software vendors, to explain their goals with the new UAD and gather input from concerned parties. After years of work and back-and-forth with this advisory group, they published the initial specification for UAD 3.6 and the new dynamic reports in the spring of 2023. Since then, all of the technology partners in the industry have been working to develop and implement all the changes this effort requires.
The GSEs have already begun initial testing of the new URAR with software vendors, with that testing period running through Q4 of 2025. On September 8, 2025, a “limited production” phase will begin, where some appraisers will complete some assignments for select lenders using the new dynamic report rather than the legacy numbered forms. “Broad production” will begin on January 26, 2026, at which point any lender can issue an order for a UAD 3.6 report; the old and new UAD standards will exist alongside one another during a transition phase, until the industry and the GSEs are confident all the kinks have been worked out.
Beginning on November 2, 2026, all lenders must use UAD 3.6 for new orders, though existing UAD 2.6 appraisals may still exist in the pipeline. By May 3, 2027, all UAD 2.6 reports will have cleared the pipeline and the legacy numbered forms will be completely retired.
When developing the requirements for the new UAD, Fannie Mae and Freddie Mac also worked with their colleagues at the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA) to ensure UAD 3.6 addressed their needs as well. FHA and VA both anticipate adopting the dynamic URAR after the GSEs do, though they have not announced a specific timeline for the change.
Why does it matter?
The UAD redesign and new URAR simplify the appraisal process, enhance data accuracy, and, perhaps most importantly, improve readability for lenders and homeowners.
In 2009 and 2010, the original UAD was developed to make appraisal reports easier for computers to parse by collecting more standardized data in the 2005 Fannie and Freddie forms, allowing increased accuracy and speed in review and data processing. A computer readable and parsable XML (eXtensible Markup Language) would be delivered to the client in the MISMO data formatting standard along with a human readable PDF file.
The problem was that the PDF file, with its new UAD abbreviations and formatting used to squeeze more information into the existing fields designed for plain text, was very close to gibberish to the general human consumer. A UAD abbreviation addendum was included but this caused frustration for the client. Now they had to flip back and forth between both the additional comments addenda and the UAD abbreviations addendum to decipher the full report.
The new UAD addresses this by collecting the same data as the previous version while creating a more narrative, easier to read PDF version of the report that’s much more human friendly. It also frees the appraiser from having to learn and use cryptic abbreviations, punctuation and formatting by dynamically adding sections of the report as they are needed and collecting information in a more familiar narrative fashion.
What will this mean for my workflow?
If one thing can be said about the real estate appraisal software industry, it’s that appraisers understandably dislike any disruption to their workflow, especially changes to their software. But, sometimes, change is unavoidable. And sometimes it can even make your life easier.
No matter which software package you use to create your appraisals, your workflow is going to change.
Most appraisal software suites present the current UAD forms in a What You See is What You Get (WYSIWYG) format. This means that you see the form roughly as it will be printed and delivered, like a piece of paper, and you “type” into each field.
With the new UAD, the GSEs are leaving it up to the individual software companies as to how they will collect and present the appraisal report data. As you begin adding information into the report, new sections will appear so that only relevant information is collected.
The end result will be a very narrative appraisal report that is easy to read and understand along with the computer friendly MISMO XML data that the AMC and lender computer systems will use to parse, process and make decisions on.
And, in an effort to help reduce revision requests, the GSEs are also exposing the same validation API (application programming interface) to the software vendors that the Uniform Collateral Data Portal (UCDP) uses to check submitted reports. This means there shouldn’t be any surprise hard stops, errors, or warnings after an appraiser has submitted their report to their client – they’ll be able to validate their report against the GSE API before sending it in.
How is SFREP implementing the new UAD?
SFREP has been working directly with Fannie Mae and Freddie Mac, as have the other major software vendors, to ensure the new UAD is implemented correctly and efficiently.
Each software vendor was given the freedom to collect information and display the dynamic forms in whatever way they thought was best. We’ve made a huge effort to keep the editing process similar to form editing with the old UAD.
While some software designers may choose the “wizard” approach to collecting report information, guiding the appraiser step-by-step and not showing the final output report until the end, we’ve chosen to keep some semblance of the what-you-see-is-what-you-get presentation previously used in Appraise-It Pro.
As the appraiser begins filling out the dynamic form fields, new fields and sections will appear as needed. If they reach the end of a text field but have more to say, rather than trip over to an extended comment to continue their thought, the text field will simply expand to give them more room. The appraiser will see an approximation of the final printed report as it is built, which will aid in “report awareness” and make the transition to the new UAD familiar and easy.
SFREP also has a rigorous and extensive beta testing program planned with volunteer users to get valuable feedback and help choose the best ways to collect data and present the form. While we pride ourselves in having great user interface and program design chops, we’re not the real experts. Our users are.
A massive training and technical support program is also planned to get our users up to speed with live webinars, pre-produced how-to videos and expanded phone and chat support hours.
And we plan to do all of this at no extra charge.
No one likes change. Especially change on this scale. But with a lot of hard work, planning and help from software professionals and our peers, we’ll all come out stronger, more efficient and more profitable on the other side.
