The Uniform Appraisal Dataset (UAD) 3.6 standard, taking effect November 2, could cause temporary delays in mortgage loan processing and closings while appraisers, banks and technology platforms adapt, warned Jorge M. López, president of Property Advisers Real Estate. UAD 3.6, developed by Fannie Mae and Freddie Mac under the Federal Housing Finance Agency, replaces separate forms and lengthy narratives with a uniform, structured digital system for residential appraisals.
López, a real estate broker, estimated closings could be delayed six to ten months if the industry is not ready. The dynamic residential report will require documenting each property with greater detail and uniformity, replacing narrative comments with structured answers. "The opinion is over. It has to be more objective," López said, though he worried the system may be too rigid and limit appraisers’ professional judgment.
He noted appraisal and closing costs for consumers could rise as professionals invest in platforms, software and training, while property prices would not change. Some appraisers are ready, he said, but others are not, and it is unclear whether banks are prepared. Appraisers who do not update their programs and train will not be able to practice, he said. López advised buyers to confirm their property fits their bank’s mortgage programs.