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A New Era in Valuation: How UAD 3.6 and the New URAR Will Reshape the Appraisal Landscape

by Paula Konikoff, Appraisal Institute

The residential appraisal profession is entering a period of profound transformation. With the introduction of UAD 3.6 and the redesigned Uniform Residential Appraisal Report (URAR), appraisers aren’t just being asked to fill out a new form—they’re being asked to operate within an entirely new digital ecosystem. This is not a tweak. It’s a reengineering of the reporting process that will impact the entire valuation workflow: from inspection to submission, from fieldwork to file review.

A Redesign With Reach
The UAD and URAR redesign, led by Fannie Mae and Freddie Mac, is part of a broader modernization strategy to increase transparency, flexibility, and data standardization in mortgage lending. The legacy 1004 form—long the industry’s default—is being phased out, along with other form-specific templates. In its place, the new URAR provides a dynamic and modular structure designed to accommodate all residential property types in a single format. That shift alone represents a significant departure from the rigid, checkbox-heavy reports many appraisers have grown accustomed to.

But the changes go far deeper than formatting. UAD 3.6 introduces new data fields, redefines existing ones, and creates room for more narrative reporting and integrated exhibits. Appraisers will be expected to demonstrate stronger support for adjustments, provide embedded market analysis within the report itself, and maintain consistency between the written analysis and structured data fields.

Technology at the Forefront
Adapting to these changes will require more than just learning a new template—it will demand new tools and systems. The updated URAR is built for a digital-first environment, emphasizing software integration and data validation. Many of the systems being rolled out to support this transformation are designed for mobile use, enabling appraisers to collect data and complete sections of the report in the field.

This mobile shift signals a major operational change. Appraisers will need to evaluate and possibly overhaul their existing software, update their devices, and get comfortable working in environments that prioritize interoperability between platforms. For some, this transition will feel natural. For others, it may require a steep learning curve and an investment of time and resources.

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The Training Divide
One of the most pressing challenges emerging during this transition is the uneven rollout of education across industry stakeholders. While appraisers are being offered robust training programs—including a course developed in partnership with the GSEs and delivered by the Appraisal Institute—the same level of engagement has not yet been extended to lenders, underwriters, or appraisal reviewers.

To date, the GSEs have offered only limited training for the lender community, and those offerings are not on par with the formal course requirements for appraisers. This growing knowledge gap between service providers and their clients could introduce new complications to the review process. Lenders may flag appraisals for perceived inconsistencies that are actually aligned with the new requirements. Reviewers unfamiliar with the structure or expectations of the redesigned URAR may request revisions that reflect outdated standards. In short, a lack of shared understanding could lead to delays, miscommunication, and frustration on all sides.

Ongoing Education and Strategic Support
To help appraisers fully prepare for these sweeping changes, the Appraisal Institute is offering a robust lineup of educational programs beyond the core URAR course. In addition to the foundational seminar developed in collaboration with Fannie Mae and Freddie Mac, the Appraisal Institute is rolling out new sessions focused on critical aspects of the updated reporting process.

These include targeted courses on market analysis and the sales comparison approach—both of which are undergoing significant changes under the new framework. These follow-up programs are designed to give appraisers the tools they need not only to comply with the new standards, but to enhance the quality, credibility, and defensibility of their reports in a more demanding regulatory environment.

Further, the Appraisal Institute is bringing these learning opportunities to appraisers nationwide through both in-person seminars and synchronous virtual delivery. Special offerings will also be held this summer at Valuation Expo 2025, where attendees can gain hands-on experience with the new reporting structure in the context of real-world case studies.

A Call for Cross-Sector Readiness
To ensure a successful rollout, the entire valuation ecosystem—appraisers, lenders, AMCs, reviewers, and regulators—must engage in coordinated training. A well-informed appraiser can only be as effective as the reviewer who understands the new standards or the underwriter who interprets the findings. This is a moment for collaboration, not silos. The coming months and years will define how well the industry adapts. Those who lean into the change, embrace the new technology, and invest in education will position themselves for long-term success. For others, the transition may be disruptive. But one thing is certain: the future of residential appraisal is taking shape now, and it’s up to all of us to meet the moment.

About the Author
Paula K. Konikoff, JD, MAI, AI-GRS of Los Angeles, is the 2025 president of the Appraisal Institute. As president, she serves on AI’s Executive Committee and chairs the policy-setting Board of Directors. She is the author of the book, “Appraisers in Arbitration,” the developer of online seminars, was on the development team for the AI-GRS qualifying education and is a reviewer of textbooks and articles submitted to The Appraisal Journal.

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