A major transformation is coming to the appraisal world starting January 2026. A brand-new appraisal form—known as URAR/UAD 3.6—will be required for all loans backed by the GSEs (Government-Sponsored Enterprises). Other government programs such as HUD, VA, and USDA are also expected to adopt these new form requirements. Broad production of the form begins in January 2026, full mandatory use is scheduled for November 2026.
The biggest change is that one universal form will now be used for all 1–4 unit residential properties, streamlining the appraisal process. It will not apply to land-only or commercial properties, which already use different forms.
Once the Appraiser begins completing the form, it will dynamically adjust to fit the specific property type. This flexibility is designed to improve reporting consistency across all property types.
There will definitely be a learning curve for all parties involved. This new form includes more detailed data points, which means the appraiser must gather more comprehensive information about the home and its key systems.
Here’s how you can help streamline the process:
Provide the year and estimated cost of upgrades, renovations, and additions
Share a plat map of the property, if available
Give details about major systems: HVAC, plumbing, electrical, etc.
The new form requires Appraisers to objectively assess the condition and quality of a home’s components using predefined rating scales. This reduces subjective commentary and ensures more standardized, data-driven reporting. For example, rather than describing the remaining economic life of a system in a narrative, the appraiser will select from predefined options.
Appraisers will now need to complete much of the form on-site using mobile devices, including creating digital sketches of the property. While not officially mandated, mobile data collection will become a practical necessity to meet the new standards efficiently.
This transition will be especially challenging for veteran Appraisers who are accustomed to traditional reporting methods. Sketching large or complex homes on-site using a mobile device can be time-consuming and error-prone. Items missed during the inspection may require a return visit, which is inefficient and frustrating.
Many long-time Appraisers are choosing to step away from lender work due to these changes. As a result, more experienced Appraisers may be replaced by less seasoned professionals. While fresh perspectives are welcome, the loss of deep industry experience can impact the accuracy and credibility of valuations.
This new form will require additional time for completion, more explanation to clients, and carries greater liability for the Appraiser. As a result, higher fees for appraisal services should be expected.
Be aware that this change has been years in the making—and it’s coming soon. If you're involved in real estate transactions, it’s essential to work with an Appraiser who:
Understands the new URAR/UAD 3.6 requirements
Is comfortable using mobile technology in the field
Has the experience and insight to navigate complex properties confidently
At Pendley & Pendley Appraisers, we are fully prepared for the transition to URAR/UAD 3.6. Our team combines decades of experience with the latest mobile data collection tools to produce accurate, credible, and compliant appraisal reports. We are committed to staying ahead of industry changes—so you can move forward with confidence.