Many in the appraisal profession are looking forward to the arrival of the new UAD 3.6 (uniform appraisal dataset) appraisal forms and the opportunities the changes will bring while remaining focused on staying both relevant and compliant.

The data gathered in the field is going to be more time-consuming, as the GSEs want improvement data to be gathered and reported in a specific format. 

It will lengthen time spent on site, especially for properties with outbuildings like barns and detached ADUs. There is a strong feeling amongst those in the valuation profession that the “new” reports will pave the way for more streamlined, tech-driven appraisals that benefit appraiser partners and lender customers.

Woody Fincham, president and founder of Fincham & Associates highlighted specific changes appraisers will encounter with the new forms, as well as how the emphasis on input data will make a difference.

“The biggest change is that we’re moving away from multiple static forms like the 1004, 1073 or 1025,” Fincham said. “The new uniform residential appraisal report will be a single, modular report format that adjusts dynamically to the property and assignment type. It’s structured around data input rather than longform narrative writing. It’s a more flexible, modern reporting structure that reflects how we actually work.”

The redesigned UAD is much more data-centric, Fincham said. Instead of typing out detailed commentary in freeform fields, appraisers input data into structured fields, drop-downs and checkboxes. Those entries then flow into a dynamic report that’s automatically compiled by the software. It’s more efficient and leaves less room for ambiguity, the company executive said.

Additional points of interest Fincham shared about the forms include the images will be in the sections where they apply, not buried in an addendum somewhere.   Fincham also said charts can now be placed in the market analysis section, and if there is damage to certain things, an image of the damage can be placed in the improvements section. But what will veteran appraisers be saying “goodbye” to as far as the old ways of reporting?

“We’re saying goodbye to manually formatting static forms, redundant data entry and longwinded commentary that’s often repeated from one report to the next,” Fincham answered. “Regarding those boilerplate addenda and paragraph explanations we used to paste in, much of that will be replaced by structured data responses. It’s a big shift — but a necessary one.”

Fincham also discussed the new technological concepts in reporting appraisers will be able to take advantage of with the updated UAD.

“Writing actual narrative description will be the new normal. The GSEs want analysis, not form filling. Large language models will be helpful to appraisers writing these narratives,” Fincham said. “The new system is built to integrate with modern tools — GIS mapping, sketch software, MLS data feeds and even image labeling systems. We’ll see increased compatibility between our desktop tools and cloud platforms, and that’ll open doors for artificial intelligence (AI)-assisted checks, risk flagging, and analytics that help better explain markets.”

Shawn Telford, Cotality (formerly CoreLogic) chief valuation officer, and Joel Baker, senior professional, product solutions for Cotality company a la mode technologies, spoke on the new forms at this year’s Association of Appraiser Regulatory Officials conference.

One of the key differences with the redesigned UAD, the presenters pointed out, is the dynamic nature of the data points included in each report.

“Each report will contain a unique selection of data points from the new UAD based on the property attributes, market characteristics, and client needs. The notion of being able to view a ‘blank copy of the form’ is no longer possible,” Baker said. “UAD 3.6 is essentially a superset list of available data fields appraisers will use as necessary. When completed, the appraisal report displays only the data fields used based on the appraiser’s inputs describing property characteristics, scope of work, analysis and assignment results. Appraisal software providers are building new capabilities in their software tools for appraisers to both collect, analyze, view and report their assignment results in the UAD 3.6 format.”

“Appraisers will now deliver assignment results – XML data, photos and a PDF rendering of the appraisal data and photos – in a ZIP file. This ZIP file in its entirety constitutes the work product delivered to clients,” Telford said. “Lenders as well as Fannie Mae and Freddie Mac will use the XML version and photos folder to automate workflows and review the report using technology solutions. A PDF version will be available for delivery to borrowers and viewing as needed.”

Fincham said he can see innovative appraisers working with their local MLS to get the data presented in listings to be more like what appraisers need to see and that integrating that into a CSV and then to the format UI will be part of that evolution. Pertaining to the overall commentary within the reports, Fincham noted that narrative commentary won’t disappear entirely, but it’ll be more targeted and more structured.

“We will enter commentary when the assignment calls for clarification — like unique property features or condition issues,” he said. “The rest will be handled by standardized terminology. This shift will increase consistency and help eliminate unnecessary wordiness.”

The data will also help appraisers focus on analysis instead of formatting, Fincham said. It reduces the time spent re-entering the same data in different places and ensures findings are more consistent, he went on to say, while it also means the reports are easier to review and less prone to error.

“We’re essentially spending more time on valuation and less time fighting with forms,” Fincham said. The new structure also gives underwriters and reviewers cleaner, more consistent data, he added. “That leads to better comparability across properties and makes risk analysis far more efficient. It also supports the GSEs in their push toward automated underwriting and appraisal modernization,” he said.

Fincham also addressed how the new reports can address appraisal bias.

“Appraisers are writers — or should strive to be good technical writers. For appraisers that lean into their ‘personal perspective’ on things, the extra narrative may show implicit and explicit bias more easily,” Fincham said. “The ability to post images of actual analysis from Excel or other tools that show data visualization will help get across objective information more easily. A picture is worth a thousand words, they say.  

“Because we’ll be selecting from predefined responses in many fields, it also helps maintain consistent phrasing across the industry,” he added. “This isn’t just about efficiency — it’s about fairness.”

How will new reports help identify USPAP compliance points more easily?

“Standard 2 will be more conspicuous to the reader of the report. Lenders have gotten into the habit of accepting less than summary formats where USPAP requires appraisers to write a summary when reporting the development of analysis, discussing methods and techniques used, and a summary of opinions throughout the report,” Fincham said. “The way the modules are structured encourages us to clearly document our scope of work, intended use, exposure time, and other USPAP elements. There’s less guesswork involved for reviewers trying to figure out whether something was addressed. And if done right, it’ll help us stay aligned with standards without burying those details in a sea of narrative.”

Property interiors and exteriors will also factor in for appraisers regarding the new reports. Fincham told us that appraisers will have to be more structured around documenting condition and quality, which makes things clearer for users. There’s better support for image labeling and sketch integration, he said, and even potential for geotagging in the future. It brings more transparency and objectivity to how appraisers describe the physical characteristics of a home.

“It’s a major evolution,” Fincham said about the new forms. “The redesign makes our work more efficient, more defensible, and more aligned with how other industries manage data. It’s also an opportunity for us to embrace technology that enhances — not replaces — our judgment. For appraisers willing to adapt, this is a real opportunity to sharpen our relevance in a fast-changing mortgage ecosystem.

“For entrepreneurs, or those with the spirit of being innovative, this will be an opportunity for them,” he added. “For those that are near retirement, I think we will see several of those appraisers give up mortgage lending work to a large degree.” 

As the profession moves to the new UAD, the benefits and opportunities for appraisers are huge, according to Telford.

“Comments and conditions being displayed throughout the report in the sections with which they’re associated is an upgrade. The appraisers’ input will be at the front and center, making their work and observations even more evident and giving them an opportunity to shine in front of their clients,” he said.

Baker concluded by saying “it will be nearly impossible for an underwriter or reviewer to miss the appraiser’s comments and analysis because they will be right there in context and will include all the necessary information, including photographs, which should eliminate much of the back and forth so common today.”

*To read more stories on the current regulatory landscape covered by sister publications Dodd Frank Update, The Title Report, The Legal Description and Respa News, download the 2025 Real Estate Compliance Outlook in-depth report at https://www.valuationreview.com/vr/real-estate-compliance-2025-vr.aspx