3.6 The promises, the predictions, the panic and the fight for the dwindling appraiser dollars

[Alsie35]

The damage control brigade certainly responded quickly. Doubting the purity of 3.6 is heresy.

Bucks, I'm putting this thread on ignore, because otherwise I will be unable to withstand the temptation to 'speak truth to power'

I'm retiring, looking forward to it like I wanted it to start yesterday, and they're just giving me an excuse, although that's not their motivation. The extinction of the independent appraiser is. Out.

 

[Ca Ar Independent]

You are conflating issues. There is nothing in the UAD spec related to software automatically suggesting ratings and/or adjustments.

Does some of the software offer such capabilities? Sure. That kind of stuff has been around a very long time, and it is growing now with the expansion of AI use. As with any tool, there is nothing compelling or requiring its use and/or the acceptance of the output. If you do not think an analysis is credible, then you certainly should not sign your name to a report that uses the analysis.

There is an adjustment tool that has been out for a couple of years now that some appraisers use. I would never use it because when I looked into it I found that the method it was using was in direct conflict with fundamental appraisal principles. Some choose to ignore that and use its output. That is on them. They are choosing to use it without understanding its flaws; they are not required or compelled to use it (or any other such tool).

The rationale for my statement was that this new platform is being promoted as "faster" and "smoother" (being cloud based) and "drop down" formatted. AI is being promoted as even more of a time saver (appraisal in 20 minutes!) . If the appraiser is supposed to "enjoy" the benefits of the data and anlysis offered by AI, we must assume the data is accurate, which it isn't. I guess one could make the extraordinary assumption that the data is accurate, or take MORE time to double check the AI input. We will all find our path through, or take an offramp.

 

[chad hampton]

I think it’s a significant issue that it appears all the software providers took a different approach. My software provider hasn’t come out with anything yet, so I can’t comment on anything. When I get an order, I will pull it up and hopefully be able to do it.

I figured there was going to be a lot of collaboration and the format would be the same with all the providers. Not just cut them all loose and say here you go figure out how to get to this finished product.

It’s my fault, I occasionally still expect government entities to be competent , you think I would learn by now.

 

[Ca Ar Independent]

Chatgpt on "modernization"

The key modernization shifts​

1) From “forms” → to a​

• UAD 2.6 relies on specific forms (1004, 1073, etc.)
• UAD 3.6 replaces all of them with a single, flexible URAR driven by property characteristics

✔ Why this matters:

• No more “which form do I use?”
• The report adapts to SFR, condo, 2–4 unit, manufactured, etc.
• Much more scalable for new property types (ADUs, hybrids, etc.)

---

2) From narrative text → to​

• UAD 2.6: lots of free text and abbreviations
• UAD 3.6: granular, standardized data fields

Examples:

• Component-level condition & updates (kitchen, baths, flooring)
• Separate interior vs exterior condition ratings
• More detailed property characteristics and attributes

✔ Why this matters:

• Enables automated QC and validation
• Reduces ambiguity (“C3 vs C4 debates” become more data-supported)
• Makes appraisals searchable and comparable at scale

---

3) Alignment with​

• UAD 2.6 used older XML conventions
• UAD 3.6 is fully aligned with MISMO 3.6

✔ Why this matters:

• Seamless integration with LOS, underwriting, QC systems
• Appraisal data becomes part of the broader mortgage data ecosystem

This is a major “modernization” piece—moving appraisals into the same data architecture as everything else.

---

4) From PDF delivery → to​

• UAD 2.6: XML + PDF
• UAD 3.6: ZIP file with XML + PDF + images + structured metadata

✔ Why this matters:

• Photos are tagged and usable (not just embedded)
• Data can be extracted without re-keying
• Supports AI / analytics / automated review

---

5) From static scope → to​

• UAD 2.6: scope largely embedded in form
• UAD 3.6: scope is explicitly defined by data inputs

✔ Why this matters:

• Supports:
  • hybrid appraisals
  • desktop appraisals
  • waivers / alternatives
• Fits into the broader valuation modernization ecosystem

---

6) Expanded data →​

UAD 3.6 introduces:

• More property-level detail
• Standardized condition/quality definitions
• Energy/green features (increasingly relevant)

✔ Why this matters:

• GSEs can:
  • run automated QC at scale
  • benchmark appraisers
  • detect risk patterns earlier

This is the core policy goal: better collateral risk management

---

7) Standardization across ALL property types​

• UAD 2.6 had gaps (e.g., manufactured housing inconsistencies)
• UAD 3.6 applies consistent data rules across all residential types

✔ Why this matters:

• Eliminates edge-case inconsistencies
• Improves comparability across markets and property types

---

Bottom line (how it’s “modernization”)​

UAD 3.6 is considered modernization because it transforms appraisal reporting from:

➤ A document-based process​

into

➤ A​

That enables:

• automation (QC, underwriting, risk flags)
• analytics (portfolio-level insights)
• flexibility (new appraisal types, property types)
• integration (LOS, DU/LPA, collateral tools)

---

A practical appraiser takeaway​

From your perspective in the field:

• Less narrative freedom, more structured reporting
• More upfront data discipline required
• Less “storytelling,” more “data justification”
• But also:
  • fewer revision loops
  • clearer expectations
  • more defensible outputs

This is the best we can hope for How do you feel about it?

 

[DWiley]

I think it’s a significant issue that it appears all the software providers took a different approach. My software provider hasn’t come out with anything yet, so I can’t comment on anything. When I get an order, I will pull it up and hopefully be able to do it.

I figured there was going to be a lot of collaboration and the format would be the same with all the providers. Not just cut them all loose and say here you go figure out how to get to this finished product.

It’s my fault, I occasionally still expect government entities to be confident, you think I would learn by now.

How many different software solutions have you looked at for the UAD 2.6? I used to have the two largest ones installed on my computer, and I hated moving back and forth, because they were so different. None them work the same when it comes to the UI. So, why would you assume they would for UAD 3.6?

 

[George Hatch]

I think that whatever they start with, their subsequent refinements will make things easier on their users.

As for the benefits of the UAD itself, I doubt anyone thinks there are benefits to the appraiser.

 

[Bobby Bucks]

It does not bother me at all when people criticize UAD 3.6. But, if people want to criticize, they should understand the thing they are criticizing. The UAD is just a data spec. It does not dictate any specific user interface that must be used to get to that data spec. Anyone who has tested the various software solutions out there can easily see that the various companies have taken very varied approaches to the user interface. And automated adjustments/ratings has nothing to do with the UAD. That is just a fact, not a defense or "damage control"

You responded quickly to both posts which is commendable, can I assume you don't have a dog in this fight?

Bucks, I'm putting this thread on ignore, because otherwise I will be unable to withstand the temptation to 'speak truth to power'

I'm retiring, looking forward to it like I wanted it to start yesterday, and they're just giving me an excuse, although that's not their motivation. The extinction of the independent appraiser is. Out.

I'm the eternal optimist and trying to see a bright side. I anticipate a year or more of absolute chaos where demand exceeds supply, the 2.6 is unretired and the 3.6 is butchered and renamed the 2.7. Meanwhile as someone in this business 1/2 to 3/4 of the time, I see a possibility of quadruple digit fees on some assignments until a cyber version of Red Adair fixes their mess.

 

[DWiley]

You responded quickly to both posts which is commendable...

LOL. Its only because I am in CE all day today, and we were on a break

 

[Fernando]

Chatgpt on "modernization"

The key modernization shifts​

1) From “forms” → to a​

• UAD 2.6 relies on specific forms (1004, 1073, etc.)
• UAD 3.6 replaces all of them with a single, flexible URAR driven by property characteristics

✔ Why this matters:

• No more “which form do I use?”
• The report adapts to SFR, condo, 2–4 unit, manufactured, etc.
• Much more scalable for new property types (ADUs, hybrids, etc.)

---

2) From narrative text → to​

• UAD 2.6: lots of free text and abbreviations
• UAD 3.6: granular, standardized data fields

Examples:

• Component-level condition & updates (kitchen, baths, flooring)
• Separate interior vs exterior condition ratings
• More detailed property characteristics and attributes

✔ Why this matters:

• Enables automated QC and validation
• Reduces ambiguity (“C3 vs C4 debates” become more data-supported)
• Makes appraisals searchable and comparable at scale

---

3) Alignment with​

• UAD 2.6 used older XML conventions
• UAD 3.6 is fully aligned with MISMO 3.6

✔ Why this matters:

• Seamless integration with LOS, underwriting, QC systems
• Appraisal data becomes part of the broader mortgage data ecosystem

This is a major “modernization” piece—moving appraisals into the same data architecture as everything else.

---

4) From PDF delivery → to​

• UAD 2.6: XML + PDF
• UAD 3.6: ZIP file with XML + PDF + images + structured metadata

✔ Why this matters:

• Photos are tagged and usable (not just embedded)
• Data can be extracted without re-keying
• Supports AI / analytics / automated review

---

5) From static scope → to​

• UAD 2.6: scope largely embedded in form
• UAD 3.6: scope is explicitly defined by data inputs

✔ Why this matters:

• Supports:
  • hybrid appraisals
  • desktop appraisals
  • waivers / alternatives
• Fits into the broader valuation modernization ecosystem

---

6) Expanded data →​

UAD 3.6 introduces:

• More property-level detail
• Standardized condition/quality definitions
• Energy/green features (increasingly relevant)

✔ Why this matters:

• GSEs can:
  • run automated QC at scale
  • benchmark appraisers
  • detect risk patterns earlier

This is the core policy goal: better collateral risk management

---

7) Standardization across ALL property types​

• UAD 2.6 had gaps (e.g., manufactured housing inconsistencies)
• UAD 3.6 applies consistent data rules across all residential types

✔ Why this matters:

• Eliminates edge-case inconsistencies
• Improves comparability across markets and property types

---

Bottom line (how it’s “modernization”)​

UAD 3.6 is considered modernization because it transforms appraisal reporting from:

➤ A document-based process​

into

➤ A​

That enables:

• automation (QC, underwriting, risk flags)
• analytics (portfolio-level insights)
• flexibility (new appraisal types, property types)
• integration (LOS, DU/LPA, collateral tools)

---

A practical appraiser takeaway​

From your perspective in the field:

• Less narrative freedom, more structured reporting
• More upfront data discipline required
• Less “storytelling,” more “data justification”
• But also:
  • fewer revision loops
  • clearer expectations
  • more defensible outputs

UAD 3.6 allows anyone to be an appraiser just following step by step guided by the form.
No need to think like an appraiser and just go through the motions.
Fannie sees how USPAP and licensing have failed and is taking control in how appraisals should be done.
With UAD 3.6, Fannie is saying give them all the data and they will eventually do better appraisal determination than human appraisers.

 

[Bobby Bucks]

LOL. Its only because I am in CE all day today, and we were on a break

I hope the CE course is on the 3.6, if it is you'll be pleased to know Fernando is back from vacation if you need a lifeline to any complex questions.