Redesigned Appraisal Report & New Data Guidelines
The Uniform Residential Appraisal Report (URAR), required by Fannie Mae & Freddie Mac as part of their loan underwriting guidelines, has received a much-needed overhaul, utilizing the Uniform Appraisal Dataset (UAD) 3.6. The last major update to the Appraisal Report/UAD was about 15 years ago. This will affect Conventional “conforming” loans, but it is also anticipated that FHA and VA loans will adopt the change (on their own timelines), and we will likely also see the updates filter to multifamily transactions.
“Conforming” loans are those which meet the underwriting guidelines established by the government-sponsored enterprises Fannie Mae and Freddie Mac related to loan amount, credit score, down payment amount, etc. Fannie Mae and Freddie Mac will purchase these conforming loans from lenders and package them to be bought and sold as securities on the secondary market.
Fun facts: “Fannie Mae” comes from the acronym of the official name “Federal National Mortgage Association” (FNMA). “Freddie Mac” comes from “Federal Home Loan Mortgage Corporation” (FHLMC).
The Appraisal Report is the lender’s “eyes and ears” on the property. It reflects not only the appraiser’s opinion of value for the loan collateral, but also enables the lender to assess other risk factors (e.g. market dynamics, property condition), government reporting (e.g. broadband availability) and compliance with ancillary regulations (e.g. Community Reinvestment Act).
The Redesigned Uniform Residential Appraisal Report
Also known as Form 1004, the URAR was established by Fannie & Freddie in the 1980s to standardize residential appraisals; it was later also adopted for FHA and VA loans. Because of this standardization and widespread use, it’s also common to see the URAR used in nonconforming conventional lending and even portfolio lending.
The previous URAR was designed for single family, detached homes. This has made it suboptimal for other types of properties or appraisal assignments, yet appraisers and lenders have had to do the best they could. The redesign will move the Report from a physical, static form to a standardized format with dynamic elements (drop-downs, conditional comment boxes, and structured fields) which will replace multiple forms and attachments and lengthy narratives by the appraiser. The new, dynamic Report format will adjust in real time to accommodate different property types and features (e.g. duplex, triplex, quadplex, condo unit, manufactured home) as well as different assignments (e.g. interior, exterior, updates, as-repaired). It is expected to replace legacy form numbers 1004, 1075, 1073, 2055, 1025, and more by producing a single, tailored Report upon completion.
Speeding Up Appraisals? Eventually.
Once fully implemented, the new format should speed up appraisals and underwriting review by focusing more on what applies to the property/assignment and what matters to the lender. However, because this is more of an overhaul than a refresh, it will take time for everyone to get up to speed. Appraisers may need retraining to complete the new format and utilize the new Dataset.
In the short term, expect appraisals to take longer. This is because the appraiser will need to spend more time at the property and collect more data, including from the seller/agent, than in the past. Currently, the “field work” portion of the appraisal does not take much time and most of the data collection and entry happens back at the office. Appraisers will have to interact more with the agents to obtain the information they are required to report. There are parts of the Report which will require responses before finalization, whereas in the past an appraiser could skip sections.
Impact on Real Estate Agents, Appraisers, and Transactions
Apart from initial rollout challenges, Agents and Appraisers will have to grow more comfortable interacting with each other to complete the Appraisal Report. If the Appraiser cannot get the required data, the appraisal cannot be completed. Listing Agents who refuse to cooperate may be in violation of their legal and ethical duty to act in the best interest of their client. If Listing Agents enter accurate and complete information into the MLS from the beginning, this will greatly help the timeline and ensure accuracy.
We already have a shortage of appraisers nationwide, but this should not have an impact on appraiser counts apart from those who choose retirement over adapting to the change. Appraisers who are accustomed to rapidly completing “slam dunk” appraisal assignments and skipping some of the research and data entry will have the hardest time slowing down to complete the Appraisal Report in the manner intended.
Timeline for Rollout
- 8 September 2025 – limited release to lenders and vendors proven ready to process the UAD 3.6 and redesigned Appraisal Report.
- 26 January 2026 – broad use of new Dataset and Report across the industry; old and new versions will coexist.
- 2 November 2026 – full adoption required across the industry. No new appraisals using the prior UAD 2.6.
-----
Bart Stockton is Associate Broker (TX & OK) and Chief of Operations for Paragon. An educator at heart, Bart writes and instructs continuing education courses focusing primarily on the topics of contracts, law, ethics, and risk reduction. He has been using em dashes since well before the robots were taught how to write. Nothing in this post shall constitute legal advice; consult a skilled real estate attorney. ©2025 Bart Stockton Real Estate Education. All rights reserved. Used by permission.
