Newz: UAD 3.6 Started for Lenders, AI and Appraisers
January 30, 2026
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What AI Means For Appraisers
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What’s in This Newsletter (In Order, Scroll Down)
- LIA AD: Safety issues not fixed
- 7.5 Things AI Is Already Doing Better Than Most Appraisers (And Why That’s Okay) By Mark Buhler
- EXCLUSIVE: Tech Mogul Lists His Custom-Built Coral Gables Megamansion for Sky-High Price of $22 Million
- Critical Thinking and the Intellectual Deficit in Real Estate Appraisal Qualifying Education by Timothy Andersen
- MY AD: Appraisers’ Guide to the New URAR by Dave Towne
- GSEs: Available Now in Broad Production: UAD 3.6 and Forms Redesign
- URAR: Expect The Unexpected. How UAD 3.6 affects lenders
- MBA: Mortgage applications decreased 8.5 percent from one week earlier
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7.5 Things AI Is Already Doing Better Than Most Appraisers (And Why That’s Okay)
By Mark Buhler
A while ago I wrote about “7.5 Things Appraisers Can Do That Artificial Intelligence Cannot”—the human parts of the job AVMs and algorithms still can’t touch: judging condition and quality, interpreting oddball features, smelling the house, defending adjustments, testifying in court, and exercising professional judgment under pressure.
None of that has changed.
What has changed is the toolset. AI is already doing parts of the workflow faster, cheaper, and more consistently than most humans—not the appraisal itself, but much of the heavy lifting underneath it:
Data gathering and sorting
Pattern detection
First-draft writing
Basic consistency and error checks
You will not beat AI at those tasks. The good news is you do not need to.
7.5 Tools you need:
1. Sifting Massive Datasets for Patterns
2. 2. Generating a First-Pass Comp Set
3. Producing Market Metrics and Adjustment Support on Demand
In my first article, I argued that AI cannot judge condition, interpret quirks, smell the house, testify in court, or exercise professional judgment. That remains true.
What has changed is the gap between appraisers who leverage AI and those who pretend it does not exist. The market is looking for valuation professionals who can…
To read more, Click Here
My comments: Definitely worth reading, including all 7 of the Tools.
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EXCLUSIVE: Tech Mogul Lists His Custom-Built Coral Gables Megamansion for Sky-High Price of $22 Million
Excerpts: 7 bedrooms, 7.5 baths, 7007 sq.ft., 0.47 acre lot, built in 2018
It was the unobstructed views out over the water that first drew the tech expert to the property, as well as the privacy offered by its location in a secure gated community, and the fact that the Bahamian island chain of Bimini is just a 1.5-hour boat ride from the home’s dock.
From the outside, the home could be mistaken for a resort thanks to its lavish pool, built-in barbecue, firepit lounge, outdoor kitchen, expansive waterfront terraces, and a basketball or volleyball court by the water—all of which make for a rare backdrop of relaxation and play.
Elsewhere on the grounds, there are two private docks that accommodate a superyacht of more than 100 feet, a 30,000-pound boat lift, and access to Biscayne Bay.
To read more, Click Here
To see the listing with an aerial view, virtual tour and 60 photos, Click Here
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Critical Thinking and the Intellectual Deficit in Real Estate Appraisal Qualifying Education
by Timothy Andersen, MAI The Appraiser’s Advocate
Excerpts: It is the premise of this essay that critical thinking, analytical rigor, integrative synthesis, and dialectical method are indispensable to the cultivation of competent real estate appraisers and the concomitant production of credible appraisals and non-misleading appraisal reports.
Yet, curiously, these conceptual pillars are either wholly absent or conspicuously marginalized within the current corpus of real estate appraisal qualifying education (QE). That QE in its present form is devoid of any formal engagement with these concepts suggests a foundational deficiency that imperils the credibility of both practice and pedagogy.
Appraisal is, at its core, a dialectical enterprise. The seller posits a value—often broker-influenced and aspirational. The buyer counters with skepticism and a desire for a discount. The broker inserts pecuniary incentives into the mix, motivated by the commission structure. The appraiser is thrust into this cauldron of competing value claims, charged with the burden of arbitrating truth. The appraiser must navigate opposing viewpoints, adjudicate conflicting data, and deliver a resolution rooted in evidence and reason.
In this sense, each appraisal is a dialectical negotiation, an intellectual endeavor wherein the appraiser becomes not merely a market technician but a philosophical mediator. Such work demands a skill set that far exceeds the filling of forms or the clicking of dropdown menus. It requires a mind trained in critical discernment, analytical rigor, synthetic coherence, and dialectical resolution, not merely in filling out a reporting form.
Yet, current appraisal QE and CE, and some of their providers, entrenched in their pedagogical inertia, fail to cultivate these competencies. They privilege mechanics over meaning, technique over thought. The consequence of such tactics is clear: we produce technicians, not scholars; form-fillers, not thinkers.
To read more, Click Here
My comments: This article explains what is missing in classes required for licensing. What you learn when first starting appraising is very, very important so you don’t have to try to learn it later.
Unfortunately after licensing started many new appraisers had not very good education. The appraisal professional associations, such as the Appraisal Institute (and predecessor associations) would not offer trainee classes. They only offered classes for getting designations. I had to refer them to the local “how to fill out a form” classes which were not very good.
The plan for appraisers to train appraisers did not work out well for many new appraisers. Appraisers lacked experience in teaching and did not want to take the time to train appraisers. Prior to licensing, most appraisers were staff appraisers at lenders who provided training. I was trained at an assessor’s office.
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Train the Trainer Class for GSEs New URAR and UAD 3.6
Appraisers’ Guide to the New URAR
In the May 2025 issue of Appraisal Today
By Dave Towne
Excerpts: Quality and Condition Ratings Updated and Appendix F-1
We learned that the Definitions for Q and C have been updated for more
clarity.
These will be in a new Appendix F-1, (available on the GSE web sites) which
appraisers should review BEFORE beginning to do UAD 3.6 URAR Reports!
I have to keep F-1 running in the background on my computer, and will do
that when teaching. F-1 is about 350 pages and shows most all entries that are required on the new reports.
Secondly, the Report will allow for better reporting of Q & C ratings for
various components. And additional property amenities can be selected from a list or drop-down.
In most cases, the Report will involve both office desktop and field tablet
inputting of data… which at this point appears to be more comprehensive than is currently required. Will the lenders recognize this fact, and correspondingly tell their lending client that the “appraisal Report” will cost more than what it might have in the past?
More importantly, will appraisers quit accepting low-ball fee assignments?
These are unknown at this point.
One more point, based on my review of the class material: this new process
is demanding a much more intensive and precise gathering of property detail than appraisers currently do.
It will take more time to do in the field than appraisers currently spend, and if
the appraiser transfers the field data back to their office desktop for completion, that will entail more time.
The ability to do complete inspections with a piece of paper on a clipboard is
going to end. A tablet or large smart phone is strongly recommended.
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Available Now in Broad Production: UAD 3.6 and Forms Redesign
UAD 3.6 and Forms Redesign Broad Production Period is here.
The Uniform Appraisal Dataset (UAD) 3.6 and Forms Redesign Broad Production period starts today, January 26, 2026, with a mandate of November 2, 2026. All lenders are now permitted to submit UAD 3.6 appraisal reports to the Uniform Collateral Data Portal® (UCDP®). EMAIL DATED 1-26-26
The Uniform Appraisal Dataset (UAD) 3.6 and Forms Redesign Broad Production Period begins today, January 26, 2026. All lenders are now permitted to submit UAD 3.6 appraisal reports to the Uniform Collateral Data Portal® (UCDP®).
Submission of UAD 3.6 appraisal reports is not yet mandatory; however, lenders that have updated their systems and processes to support UAD 3.6 appraisal reports – including working with an appraisal software provider whose software has been verified for UAD 3.6 – are encouraged to begin integrating appraisal reports that use UAD 3.6 into their workflow. Gradually integrating UAD 3.6 appraisal reports will help lenders prepare for a full transition by the November 2, 2026 mandate, when all appraisal reports on loans sold to Freddie Mac or Fannie Mae must use UAD 3.6
WHAT THIS MEANS FOR APPRAISERS NOW: Appraisers will still be providing UAD 2.6 – the current forms. You will have time to learn UAD 3.6 appraisals. The demand for the UAD 2.6 will decline over time as lenders get set up for UAD 3.6.
To read the official original copy of what Freddie says, Click Here
Comments from Dave Towne on 1-27-26
Editor’s comment: I have been reading Dave’s emails for a long time. They are reliable.
What this means is the process to order appraisals, appraisal completion using software coded for the New URAR/UAD 3.6 data base, submittal back to the appraiser client, and eventual upload to the GSE’s can now happen. However, during this phase, the legacy appraisal forms and back end processing can also be used.
But the current reality is only 2.5 appraisal software vendors and few mortgage lenders are actually able to do this new process in what was expected to be full processing by now.
Two of the software vendors apparently have their software fully coded and approved to work with UAD 3.6. The third vendor has the ‘front end’ of their software working, but some of the other internal functions are not yet included which can somewhat impede the appraisers interaction. Two of the well-known vendors, and another newer vendor do not yet have their software fully approved by the GSE’s – which is required before the lender can allow the appraiser to use those. This is a real conundrum at present.
The process of updating the appraisal inspection and reporting beyond our current legacy actions sounds simple, “on paper”, as they say. The same applies to the lender back-end systems. In actual implementation it’s a daunting process to write software to do what the GSE’s expect. And from what I’ve been told, the software vendors apparently were not fully consulted early on.
There currently are SIX appraisal software vendors independently charged with designing their software to work with the UAD 3.6/MISMO system and functionality.
The timeline from the GSE’s shows the full cut-over date to the New URAR/UAD 3.6 to be Monday, Nov. 2, 2026. Per the GSE plan, this means:
Submit 3.6 Only – November 2, 2026 – Lenders must use UAD 3.6 for all new submissions on or after this date. Revisions allowed for previously submitted
Will this date ‘hold’ throughout the mortgage lending arena? I won’t speculate because I dropped my crystal ball two days ago when I got out of my vehicle and it shattered on the pavement! It depends on all vendor software operating correctly, and all lender back end processing systems up and running properly.
dtowne@fidalgo.net
www.towneappraisals.com
Mount Vernon, WA
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URAR: Expect The Unexpected
How UAD 3.6 affects lenders
Editor’s notes: Published by National Mortgage Professional. A good look at what lenders and appraisers need to know plus comments by an appraiser, Dan Figurski.
Broad production opens January 26, 2026, when all lenders may submit the new format alongside the legacy UAD 2.6. UAD 3.6 becomes mandatory for all new GSE appraisal submissions on November 2, 2026, and UAD 2.6 will fully retire in May 2027.
WHAT THIS MEANS FOR APPRAISERS NOW: Appraisers will still be providing UAD 2.6 – the current forms. No one knows when UAD 3.6 software will be ready for appraisers to use from all vendors and when lenders will be set up for it. Change required final date to 11-2-27 or later??
Key changes include the elimination of individual form numbers, expanded and standardized field sets, updated condition and quality definitions, and enhanced data structures that improve automation, quality control, and interoperability with loan origination systems. Lenders must ensure technology readiness, update systems to support UAD 3.6, and adjust quality control processes accordingly. FHA’s adoption is expected to begin in spring 2026, extending the new format beyond GSE‑conforming business.
Appraiser comments (interview):
NMP: Are there any unexpected changes that may surprise originators?
Figurski: One change in the redesigned URAR that might catch originators by surprise is how clearly property issues will be highlighted in the new reports.
In the past, if there was a concern with a property — say a safety hazard, a structural problem, or evidence of water damage — you’d have to really dig through the report to find it. On the new reports, those issues will be front and center at the beginning of the report. Originators will know very quickly whether there are problems that could influence the transaction or collateral risk.
NMP: What are the repercussions for those who are unprepared for implementation?
Figurski: The redesigned URAR will create a lot of efficiencies for lenders, originators, and servicers, but it’s a complete overhaul of how appraisal information has been delivered in the past. The structure looks different, the way information is presented is different, and there are more details and data fields than before. Companies that aren’t updating their workflows, training their teams, or working closely with their partners to prepare for these changes will struggle to keep pace.
On the other hand, those that are putting in effort now will be in a strong position to benefit.
NMP: What other positive features have you learned about?
Figurski: Something I thought was interesting was that the new report allows appraisers to confirm whether a property has broadband internet access. Considering how heavily our society relies on the internet — whether for streaming movies, working from home, running home security systems, or even supporting smart appliances — a strong internet connection is almost as important as having electricity or running water. By formally including it in the appraisal, the redesigned URAR acknowledges how central connectivity has become to both property value and livability.
To read more, Click Here
My comments: Definitely worth reading to see what will change for lenders. Also, appraiser comments on why the internet broadband data is provided.
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HOW TO USE THE NUMBERS BELOW. Appraisals are ordered after the loan application. These numbers tell you the future for the next few weeks. For more information on how they are compiled, Click Here.
Note: I publish a graph of this data every month in my paid monthly newsletter, Appraisal Today. For more information or get a FREE sample go to www.appraisaltoday.com/order Or call 510-865-8041, MTW, 7 AM to noon, Pacific time.
My comments: Rates are going up and down. We are all waiting for rates to drop lower in 2026.
Mortgage applications decreased 8.5 percent from one week earlier
WASHINGTON, D.C. (January 28, 2026) — Mortgage applications decreased 8.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January 23, 2026. This week’s results include an adjustment for the Martin Luther King Jr. Day federal holiday.
The Market Composite Index, a measure of mortgage loan application volume, decreased 8.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 16 percent compared with the previous week. The Refinance Index decreased 16 percent from the previous week and was 156 percent higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 0.4 percent from one week earlier. The unadjusted Purchase Index decreased 4 percent compared with the previous week and was 18 percent higher than the same week one year ago.
“Mortgage rates increased for the first time in a month, and as expected, refinance applications fell by 16 percent. The 30-year fixed rate was the highest in three weeks at 6.24 percent,” said MBA’s Joel Kan, Vice President and Deputy Chief Economist. “FHA refinance activity bucked the overall trend and increased, as FHA rates remained almost 20 basis points lower than conforming rates. With rates holding in the 6 percent range, the refinance market is likely to remain sensitive to week-to-week rate movements.”
Added Kan, “Purchase applications were 18 percent higher than last year’s pace, and the average loan size stayed at its highest level since September 2025, signaling that prospective homebuyers remain active at the start of 2026.”
The refinance share of mortgage activity decreased to 56.2 percent of total applications from 61.9 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 7.6 percent of total applications.
The FHA share of total applications increased to 18.6 percent from 15.9 percent the week prior. The VA share of total applications decreased to 14.7 percent from 16.2 percent the week prior. The USDA share of total applications increased to 0.5 percent from 0.4 percent the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) increased to 6.24 percent from 6.16 percent, with points increasing to 0.55 from 0.54 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $832,750) decreased to 6.34 percent from 6.39 percent, with points increasing to 0.40 from 0.38 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.06 percent from 6.04 percent, with points increasing to 0.75 from 0.73 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 5.64 percent from 5.55 percent, with points decreasing to 0.61 from 0.65 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 5/1 ARMs increased to 5.56 percent from 5.42 percent, with points increasing to 0.80 from 0.62 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The survey covers U.S. closed-end residential mortgage applications originated through retail and consumer direct channels. The survey has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, thrifts, and credit unions. Base period and value for all indexes is March 16, 1990=100.
Ann O’Rourke, MAI, SRA, MBA
Appraiser and Publisher Appraisal Today
1826 Clement Ave. Suite 203 Alameda, CA 94501
Phone: 510-865-8041
Email: ann@appraisaltoday.com
Online: www.appraisaltoday.com
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UAD 3.6 
