.png)
UAD 3.6: What's Actually Changing on Your Appraisals
Starting November 2, new appraisals on loans going to Fannie or Freddie come in the UAD 3.6 format. How the appraiser gets to value doesn't change; however, how you order, what the report looks like, what underwriting sees, and what conditions come back all do.
Here's what's different and where it hits your files.
One report replaces every form
The 1004, 1073, 1025, 2055, 1075, and the manufactured and exterior-only versions are gone. In their place is one report built around the property, the loan, and the scope of work. Sections show up or don't, depending on the house.
Rent goes in the order, not after
Market rent lives inside the report now. It's not an add-on you tack on later.
If the file uses rental income, please note it when you order. Figure it out on day 20, and the original appraiser has to amend the report. That's time you don't have on a 30-day close.
Condition gets rated room by room in the UAD 3.6 report
Same 1 to 6 scale, rewritten definitions. The difference is detail. The appraiser can rate the interior and exterior separately and report condition and quality down to individual rooms.
A house with a clean exterior and a kitchen nobody's touched in 45 years used to get one blended rating. Under the new format, underwriting sees exactly where the concern is. My take? Expect more questions on dated homes, and have that conversation with your borrower before the appraisal, not after. This highlights now more than ever the need to discuss the condition of their home at pre-approval.
Solar, energy, and disaster features get their own fields
Solar panels, energy-efficient HVAC, impact glass, fortified roofs, and storm shelters all have dedicated spots in the report now. They used to live in comments, if they showed up at all.
Solar is the one I'd watch. It's easier for underwriting to spot now, so get the ownership paperwork on the file early.
Comments sit next to the data
No more General Addendum at the back. The appraiser's explanation goes right next to the item it explains: less narrative, more checkboxes and dropdowns.
That's good for you. When underwriting flags something, the answer is usually right there on the same line instead of buried on page 14.
The 1004D splits into two
A Completion Report when the work's done. A Restricted Appraisal Update Report when the appraisal needs updating. Either one has to match the format of the original, so an old-format appraisal that's subject to repairs gets an old-format completion.
More time at the house, more questions for you
The report wants a lot more detail, so appraisers are spending longer on site and may come back to you, the agent, or the borrower for information. In one survey of 900 appraisers this spring, 63% expected longer turn times and 52% planned to raise fees. Budget for both.
FHA, VA, and USDA aren't on the November 2 date. Some lenders also got a short exception to keep taking the old format. Ask each lender which format it wants before you order.
Guideline references reflect our understanding at publication. Confirm against the current guide and your lender's overlays before you rely on them.
Where we fit
When a UAD 3.6 appraisal comes back with conditions, we handle it like every other request. One consolidated list. A call to your borrower when the condition needs something from them, in plain English. A date in the LOS notes. Nothing sits more than 48 business hours without a current status.
Restructure, move lenders, or renegotiate? That's yours. We tell you what the file needs. You make the call.
Bottom line
The value method didn't change. The file around it did.
If the order's wrong, the report's wrong. And you find out when the conditions come back, a week before closing.
Want a processor who doesn't just forward the appraisal conditions?
Make Sense Processing is contract processing for loan officers in the broker channel. One consolidated document request, a borrower call every time, notes in the LOS you can actually read, and status you never have to chase.
For mortgage professionals only. This is a business-to-business communication for loan originators and brokers. It is not intended for consumers and is not an offer of credit. Make Sense Processing provides contract loan processing services to licensed originators. We do not originate loans, take loan applications, or offer, negotiate, or advise on rates, terms, programs, or qualification. Nothing here is legal or compliance advice, and guidelines vary by lender, program, and state, so verify anything you plan to rely on.
Comments