With the November 2 deadline for new appraisal reporting requirements approaching, lenders face a choice: complete their transition to Uniform Appraisal Dataset (UAD) 3.6 or seek additional time under a temporary exception that carries consequences next year.
The approaching mandate is also driving technology changes across the mortgage industry. On Tuesday, Friday Harbor announced that it has expanded its AI-powered appraisal review platform to support UAD 3.6 reports, with more than 350 automated checks designed to identify potential issues and reduce manual review work.
The expanded capability is available immediately, according to the company.
“Lenders are under a lot of pressure to get UAD 3.6 right while they’re still sorting through system readiness, vendor dependencies and training,” said Theo Ellis, founder and CEO of Friday Harbor. “The last thing they need is a new appraisal format creating more manual review work. Friday Harbor does the heavy lifting so teams can quickly see what has been validated, what needs attention, and where they need to focus.”
An Extension With Consequences
Under the GSEs' transition requirements, lenders must begin submitting new appraisal reports in UAD 3.6 format through the Uniform Collateral Data Portal on November 2, unless they have received an approved exception.
Lenders unable to meet the deadline can request a one-time exception allowing them to continue submitting UAD 2.6 reports through May 19, 2027. The new format becomes mandatory for all new submissions beginning May 20.
But the extension comes with an important limitation.
Beginning March 1, 2027, UAD 2.6 reports will no longer receive normal collateral risk scores through Fannie Mae's Collateral Underwriter or Freddie Mac's Loan Collateral Advisor. Loans supported by those reports also will not be eligible for collateral representation and warranty relief related to property value.
That creates a period during which lenders with approved exceptions can continue using the older reporting format but without certain risk-management benefits available through the GSEs' collateral assessment systems.
The exception could leave brokers working with different appraisal requirements across wholesale lenders. Carrington Mortgage Services, for example, began requiring UAD 3.6 for new appraisal submissions on October 15, ahead of the GSE mandate.
The GSEs have encouraged lenders to complete their transitions before March 1 to avoid operational and business disruptions.
What It Means
UAD 3.6 replaces longstanding appraisal forms with a single, dynamic reporting structure aligned with the Mortgage Industry Standards Maintenance Organization's MISMO 3.6 data standard. The redesign changes how property information is collected, transmitted, and reviewed.
For brokers and LOs, the immediate concern is whether their lenders and appraisal partners are prepared to handle the new format without disrupting loans already in the pipeline.
Different implementation schedules could create complications in appraisal ordering and review, particularly for brokers working with multiple wholesale lenders.
Friday Harbor joins other mortgage technology providers expanding automated appraisal review ahead of the transition. In September, Clear Capital introduced its AURA Risk Navigator, designed to help lenders identify and resolve appraisal findings. The company later reported that appraisal fees had increased by approximately $65 in comparable markets, even as appraisers became more efficient using the new format.
