The appraisal process for residential properties is undergoing its biggest change in decades through Fannie Mae and Freddie Mac’s Appraisal Modernization Initiative, based on the Uniform Appraisal Data Set (UAD 3.6). Traditional narrative-style appraisal reports are being replaced with structured, data-driven digital reports designed to enhance accuracy, transparency, and efficiency across the mortgage industry.
Appraisers will collect more detailed property data on kitchens and bathrooms, broadband access, energy-efficient features, and roof age using cloud-based technology. This will lead to more consistent property valuations and faster loan processing once the system is fully implemented. During the early adoption phase, homeowners, agents, and lenders should expect longer inspection times and possible delays. The full transition will be mandatory for all Fannie Mae and Freddie Mac loans by November 2026.
A Major Step Forward for the Appraisal Industry
Appraisals are moving into the digital age. The new UAD 3.6 format shifts reports from long written descriptions to structured data fields, creating more reliable, comparable results for lenders and buyers alike. Property features from materials and condition to layout and internet access will now be recorded in a standardized format.
Appraisers will classify kitchens and bathrooms as Fully Updated, Partially Updated, or Not Updated, replacing vague terms like “remodeled.” They will also report specific data on roof age categories (under 1 year, 1–10 years, 10–20 years, over 20), broadband availability, energy-efficient features, such as solar panels and HERS ratings, distance from the front door threshold to the ground (for flood-risk analysis), ceiling heights measured to ANSI standards, and details on Accessory Dwelling Units and mineral rights.
Implementation Timeline
The modernization rollout is happening in stages to give appraisers, lenders, and software providers time to adapt.
- Limited Production (Now): Appraisers and software companies are testing the system.
- Broad Production (Starting January 2026): Lenders may begin requesting appraisals in the new format.
- Mandatory Use (November 2026): All appraisals submitted to Fannie Mae and Freddie Mac must use UAD 3.6.
What This Means for You
Expect appraisers to spend more time on-site collecting detailed data and photos. To keep the process moving smoothly, be prepared with renovation records for kitchens and bathrooms, roof age or repair documentation, information on energy-efficient features like solar panels or high-efficiency systems, permits or surveys for additions or remodels, and a copy of the purchase agreement if applicable. While this change adds some complexity now, it will ultimately result in faster, more consistent appraisals and fewer surprises in the lending process.
At Tri-County Appraisal Service, we’re already preparing for these updates with the latest tools and training to ensure your report is accurate, compliant, and delivered with care. Whether you’re buying a home, navigating a divorce, or settling an estate, you can count on us for certified, confidential, and dependable service when it matters most.