Appraiser Update
Get practical guidance to help you prepare for the Uniform Appraisal Dataset (UAD) 3.6 and Forms Redesign transition and stay current on updates that affect your work. In this second Appraiser Update of 2026—and our 35th edition since launching in 2017—we’re sharing timely insights, policy updates, and resources to help you navigate industry changes and support your success.
In this issue, you’ll find:
- Expert insights on key UAD 3.6 topics, including terminology updates, policy changes, unit counts, and more.
- What Appraisal Management Company (AMC) access to Collateral Underwriter® (CU®) means and how to navigate it effectively.
Don’t miss past UAD 3.6 articles
With the UAD 3.6 mandate of Nov. 2, 2026 quickly approaching, review past editions of our newsletter, particularly the Q2 2025 issue focused entirely on UAD 3.6.
Thank you for your continued partnership. We hope these updates provide valuable support for your business, and we welcome your questions and feedback through the links below.
Collateral Policy Team
Fannie Mae
Changes to UAD Language in 3.6
In addition to the comprehensive redesign of the data structure from UAD 2.6 to 3.6, many of the standardized terms have also been revised. Part of the learning curve with UAD 3.6 is becoming familiar with this updated language. The table below provides several examples:
UAD 2.6
Arm’s length transaction
Location
Actual age
Gross living area (GLA)
Basement
Garage / carport
UAD 3.6
Typically motivated
Site influence
Year built
Finished area above grade
Below grade
Vehicle storage
A related update in UAD 3.6 is the retirement of all former UAD abbreviations. All standardized terms are now fully stated. Appendix F-1 can help you become familiar with updated language in UAD 3.6.
Unit Count Differences in the Sales Comparison Grid
When developing the Sales Comparison Approach (SCA) for properties with multiple units, appraisers may encounter situations where the subject and comparable sales differ in total unit count. For example, the best available comparables for a three-unit subject property may be two-unit or four-unit sales. Differences in unit count should be clearly identified and analyzed within the SCA, regardless of whether the units are classified as standard units or accessory dwelling units.
When reporting this analysis in UAD 3.6 format, appraisers can clearly convey unit count differences by expanding the SCA grid by following this sequence:
Add a row labeled "Total Units" within the Dwelling(s) section of the Sales Comparison grid.
Enter the total number of units for the subject property and each comparable sale.
Report any market-supported adjustment for differences in unit count within this row.
Leave unit-level fields blank when no unit exists.
Note: Do not adjust for additional units within the Unit(s) subsection of the grid. The adjustment belongs in the “Total Units” row as described in steps 1-3.
Example
The illustration below shows how this information may be presented in the report. In this example, the subject contains three units: Comparable Sale #1 contains two units, and Comparable Sales #2 and #3 contain four units. The manually added “Total Units” row clearly identifies these differences and provides a line item for reporting any market-supported adjustments for unit count.
NOTE: This is an idealized SCA grid; actual appearance may vary depending on the software package used. Green shading indicates the columns that contain adjustment amounts, while the diagonal blue text provides explanatory notes that would not appear in an actual report.
UAD 3.6 Reports: Lessons Learned
Two important, pervasive, and inter-related design features of UAD 3.6 are:
- shifting information out of free-form text (comments) and into defined data elements or enumerations (fixed, prescribed terms); and
- encouraging appraisers to narrowly construct comments to convey information essential to understanding the appraiser’s analysis but not captured in the defined data elements.
The Q2 2025 Appraiser Update provides an in-depth look at these features. Now that UAD 3.6 is fully in-market, we’ve learned best practices for reporting as well:
Vet Comments for Accuracy and Necessity
Some of the most common problems we have seen in UAD 3.6 appraisal reports relate to inaccurate or unnecessary comments. Here are some actual cases that illustrate the issue:
- Contradictory information: In the SCA grid, an appraiser correctly utilized the Comparable Weight field to state that Comp 1 was given most weight and Comps 2-3 were given less weight, but then the appraiser added a comment that “The final opinion of value has been weighted equally among comparable sales 1-3.” The contradiction between the information in the enumerated data versus the narrative comment is confusing to the reader and undermines the appraiser’s credibility. A more helpful and appropriate comment would explain why comp 1 merited the most weight.*
- Repetitive information: Another common issue we have seen in UAD 3.6 reports is the appraiser repeating the condition rating (already stated in a defined data element) in the associated comment field.*
- Outdated language: In another report, an appraiser commented in the Sketch Commentary field that “The GLA for the subject was derived by…” Of course, the term “GLA” or Gross Living Area has been replaced in UAD 3.6 with the term “above grade finished area” (see accompanying article in this newsletter), so the reference to GLA was a non sequitur and confusing to the reader.
*These cases illustrate the general principle that appraisers should not restate information already contained in the defined data elements.
Rely on Defined Data
Another category of inappropriate free-form text that we’ve seen frequently in UAD 3.6 reports involves the selection of “Other (Describe)” from a list of enumerations. In one recent UAD 3.6 appraisal report, the appraiser selected “Other (Describe) for Site Influence and added the description “Neigh St”. Presumably, this is an abbreviation of “neighborhood street”. However, one of the defined data elements is “Residential” which conveys essentially the same information. The free-form abbreviation could be confusing to readers of the report who are not familiar with real estate terminology. Appraisers should avoid using “Other (Describe)” whenever possible, and instead choose the most representative term from the defined list.
A subset of this third category involves photo captions. UAD 3.6 enables the appraiser to place photos within the corresponding section of the report and to label the photo with defined captions (such as “laundry room”). We’ve seen many cases in which the appraiser added free-form captions in addition to or in place of the defined caption. In one example, the appraiser chose the caption “laundry room” but also added a free-form label “laundry room”. As a result, the photo is labeled “laundry room laundry room”. Using photo captions correctly can help improve the credibility of the report and enhance the reputation of the appraiser.
The general principle is for the appraiser to use the defined data elements whenever possible and to avoid using “Other (Describe)” or creating ad hoc data and labels. To successfully execute this principle, the appraiser should study and become familiar with the standardized enumerations offered within UAD 3.6.
Tip: These tips can help appraisers write clear, persuasive, professional reports in UAD 3.6 while avoiding confusion, redundancy, and unnecessary clutter:
Comment only when necessary to convey information that is essential for understanding the analysis but is not contained in the defined data elements
- Restrict comments to the theme of the particular section of the report
- Leave comment fields blank rather than clutter the report with superfluous statements
Create comments from scratch
- Stop using templates
- Do not copy or clone comments from other reports
Tell the story using defined data elements
- Avoid choosing “Other (Describe)”
- Use prescribed photo captions
- Study the enumerated fields in Appendix F-1: URAR Reference Guide
Proofread any comments or free-form text to ensure they are both accurate and necessary
Tips for using UAD 3.6 Selling Guide Supplement
Use the Fannie Mae Selling Guide Supplement: Uniform Appraisal Dataset (UAD) 3.6 Policy as a policy reference for all appraisal assignments in UAD 3.6 – it carries the same enforcement as the Selling Guide. Explore the Supplement to learn key differences between UAD 2.6 and 3.6 related to manufactured housing, rental income, report exhibits, and more. Bookmark the link above for quick access to the latest version.
AMC Access to Collateral Underwriter
Did you know that Appraisal Management Companies (AMCs) may apply for access to Collateral Underwriter® (CU®)? CU helps users identify and research appraisals with overvaluation, undervaluation, appraisal quality, or property eligibility/policy compliance risks as part of their underwriting and quality control processes.
Today, AMCs and lenders often review appraisals at different points in the process, which can lead to overlapping inquiries and revision requests. Giving AMCs access to CU provides a more informed view earlier in the process, supporting better alignment, clearer conversations, and fewer repeated questions for appraisers.
Appraiser Benefits
Providing CU access to AMCs may produce several benefits for appraisers:
- Fewer revision requests through improved alignment of quality expectations between AMCs and lenders.
- Enhanced report credibility through greater emphasis on data-driven conclusions.
- Increased productivity by reducing time spent responding to inquiries.
- Earlier visibility into evolving policy and methodology expectations.
Conditions
Access to CU is governed by a license agreement that requires AMCs to meet certain conditions. Specifically, AMCs must:
- Use CU only for quality control purposes;
- Not delegate or assign CU access to third parties;
- Not share CU scores, flags, messages, screenshots, or print reports with appraisers; and
- Maintain clear organizational separation between quality control and appraisal order fulfillment.
Additionally, consistent with our general Selling Guide requirements for appraisal fulfillment, lenders and AMCs must comply with Appraiser Independence Requirements and all applicable federal and state laws.
AMCs may use transactional and factual data displayed in CU to inform appraisal quality considerations and to support professional dialogues with appraisers. However, CU analytical outputs including scores, flags, and messages may not be used as a basis to pressure or coerce appraisers. For example, property descriptions are factual data that CU obtains from other sources (not outputs from the CU analytical engine), so they can be shared and discussed with appraisers (so long as sharing does not include CU print reports or screen shots). On the other hand, the CU messages are outputs of the analytical engine, so they cannot be shared with appraisers.
Example: a CU message stating that there is elevated overvaluation risk due to the appraisal’s reliance on comparables from superior locations cannot be shared, but the AMC could share alternative comparables in more similar locations (the factual data driving the message) and have a conversation with the appraiser about what is the most probable value in light of the additional comparables.
Fannie Mae provides training for AMCs on appropriate use of CU, and monitors AMC usage. If patterns suggest inappropriate use, we will engage directly with the AMC. Removal of CU access is one potential consequence of misuse.
Tips
Appraisers may have questions about how AMC access to CU could affect their business. The following practices can help prepare appraisal reports for CU-based risk analysis:
- Expect that clients will be well-informed with access to robust data.
- Proactively address potential gaps in market support.
- Emphasize comparables with the most similar locations and site influences.
- Derive adjustment rates using professional, quantitative methodologies.
Spring cleaning for Appraiser Update
To help readers access the most current and accurate guidance, we’re removing editions from 2019 and earlier from our archive. You can access all newsletters from 2020-present on the Appraiser Update Archive page.
