Appraisal fees are rising as the industry transitions to the new Uniform Appraisal Dataset (UAD) 3.6, but early production results suggest appraisers are becoming more efficient as they gain experience with the redesigned reports.
Clear Capital reported an average $65 increase in appraisal fees in markets where it has enough production volume to compare UAD 3.6 with the older UAD 2.6 format. At the same time, appraisers are completing reports 28% faster as they become more familiar with the new requirements.
The findings were presented Wednesday, Oct. 7, during Clear Capital's webinar, Transitioning to UAD 3.6: Separating Myths From Metrics, which featured executives from the valuation technology company and Fannie Mae's principal of collateral policy, Lyle Radke.
The discussion comes less than a month before the Nov. 2 implementation deadline, with lenders and appraisal providers preparing for one of the industry's largest changes to residential appraisal reporting in years.
Higher Fees, But Appraisers Are Getting Faster
Heather Khan, Clear Capital's director of valuation risk and architecture, said the company has completed more than 2,100 UAD 3.6 appraisal reports, providing an early look at how the new format is performing in production.
"In markets where we've reached enough volume to make a meaningful comparison between UAD 2.6 and UAD 3.6 assignments, we're seeing appraisal fees increase by approximately $65 per report," Khan said.
The increase varies by market, she added, and reflects the additional time appraisers are spending learning new reporting requirements, software, and workflows.
Clear Capital's experience also shows that the transition is taking a toll on turnaround times, at least initially.
"Turn times have increased a bit, and that's not surprising, given the learning curve," Khan said. "But the encouraging news is that appraisers get faster with experience."
According to the company, appraisers are completing reports an average of 28% faster as they gain familiarity with UAD 3.6. That improvement measures productivity within the new format, rather than a direct comparison showing that UAD 3.6 appraisals are faster than legacy reports.
Clear Capital also reported that 99% of its active appraiser panel is eligible to accept UAD 3.6 assignments, while just 3% of orders initially placed under the new format have needed to be converted back to UAD 2.6.
The company said revision performance has improved substantially over the past six months and is approaching parity with legacy reports.
Khan expects fees to moderate as appraisers become more proficient and software continues to improve.
The findings point to a transition that could carry higher appraisal costs and some scheduling challenges in the near term, even as the industry works toward a more efficient process.
Fannie Mae Explains Decision To Allow More Time
The webinar also provided new insight into why Fannie Mae and Freddie Mac decided to offer lenders additional flexibility ahead of the Nov. 2 deadline.
On Sept. 30, the government-sponsored enterprises announced a temporary exception allowing lenders that need more time to continue submitting UAD 2.6 appraisals into 2027, subject to certain conditions.
Radke said the decision reflected uncertainty about how quickly lenders would complete the transition, rather than a determination that the industry would miss the deadline.
The GSEs monitor appraisal submissions, he explained, but typically receive reports weeks after they are ordered. That makes it difficult to gauge implementation readiness until relatively close to the deadline.
"If we wait until October 29th to announce a change, that doesn't give lenders enough time to implement the change," Radke said.
He said the GSEs established a decision point in late September and opted to provide flexibility rather than risk disrupting loan production.
"In the spirit of being extra cautious and extra safe, and making sure we don't disrupt the mortgage market, we felt like it would make sense to give that extra time or that option," Radke said.
Under the exception policy, lenders must apply for additional time and demonstrate how they intend to complete the transition. Beginning March 1, 2027, UAD 2.6 appraisals submitted under the exception will no longer receive a standard Collateral Underwriter risk score or associated value-related representation-and-warranty relief. New UAD 2.6 submissions will be accepted only through May 19, 2027.
NMP previously reported that the policy could leave brokers navigating different appraisal requirements across wholesale lenders, depending on which companies obtain exceptions and when they complete implementation.
Radke said most lenders he has spoken with intend to stick with their existing implementation plans, despite the additional flexibility.
New Data Could Reduce Appraisal Review Delays
Beyond the immediate transition, Fannie Mae sees opportunities to address longstanding inefficiencies in appraisal review.
Radke highlighted a new UAD 3.6 feature allowing appraisers to document comparable sales they considered but ultimately did not use in determining a property's value.
That information could help resolve questions from borrowers or real estate agents who believe an overlooked comparable sale supports a different valuation.
The redesigned reports also include a version history that makes it easier for lenders to identify changes when an appraisal is revised.
Radke said roughly one-third of appraisals submitted to the Uniform Collateral Data Portal are resubmitted at least once, making it important for lenders to identify the latest version and understand what changed.
Clear Capital also discussed automated appraisal review, including its AURA platform, which the company says can reduce manual review time by 50% or more.
Clear Capital launched AURA Risk Navigator in September, which uses automated findings to help lenders identify and investigate potential appraisal issues.
What To Watch
The early results suggest UAD 3.6's operational benefits will take time to materialize. Appraisers are getting faster, but higher fees and somewhat longer turnaround times remain part of the transition.
Clear Capital said it is maintaining pricing parity between its UAD 2.6 and UAD 3.6 offerings despite the higher appraiser fees it has observed in some markets.
For brokers working with multiple wholesale lenders, implementation schedules may also differ over the coming months. Confirming a lender's appraisal requirements before placing an order could help avoid unnecessary revisions or delays, particularly on loans that may be transferred between investors.
The Nov. 2 deadline remains in place for lenders that do not receive an exception. And while the GSEs have created a path for those needing more time, Clear Capital's production data suggests that gaining experience with the new format may be the most effective way to overcome its initial challenges.
