UAD 3.6 Update: Lenders Can Now Request More Time
3.6 Insight | Heatherstone Appraisal Group
In our September 21st post, we talked about UAD 3.6, the new appraisal format Fannie Mae and Freddie Mac are requiring starting November 2nd. Yesterday, September 30th, they announced a change worth knowing about: lenders who aren't ready yet can now ask for more time.
November 2nd is still the official date. But some lenders will be able to keep using the current format into next year, so the switch won't happen all at once the way it was originally planned.
What changed
Lenders who can't make the switch to UAD 3.6 by November 2nd can apply to Fannie Mae and Freddie Mac for what's called a policy exception. If a lender is approved, it can keep submitting appraisals in the current UAD 2.6 format through May 19, 2027.
This isn't automatic. Each lender has to request the exception and commit to a plan for finishing the move to 3.6. Lenders that don't sell loans directly to Fannie or Freddie will follow whatever their investors decide.
What hasn't changed
November 2nd is still the mandate date. Lenders who don't get an exception are still expected to switch on schedule, and we're already seeing 3.6 orders come in.
There's also a built-in nudge. Starting March 1, 2027, appraisals in the old format lose some of the protections lenders count on when they sell loans to Fannie and Freddie, so most lenders have good reason to finish the switch well before May. Fannie and Freddie have also been clear that this is a one-time exception and won't be extended.
What this means for your transactions
For the next several months, appraisals may be completed in either the 2.6 or 3.6 format, depending on the lender. In our last post, we said a report in the current format submitted after November 2nd would be rejected. That's still true for lenders without an exception, but it no longer applies across the board.
The simplest thing you can do is ask the loan officer early on which format the lender is using. If it's 3.6, everything from our last post still applies: more detailed data, possible questions for the listing agent, longer turn times, and likely higher fees. Building a little extra time into the appraisal deadline is still a good idea.
We'll keep sharing updates as things develop. If you'd like to read the announcement yourself, it's available from Fannie Mae.
— Heatherstone Appraisal Group
