UAD 3.6, the most substantial update to appraisal reporting standards in over a decade, is now underway. In a new MBA Newslink article, Class Valuation SVP of Digital Operations, Nikkita Phanda breaks down what this transition means for lenders, how it connects to the broader push toward data-driven collateral decisions, and where traditional appraisals remain essential. She also outlines the concrete operational steps lenders should be taking now to prepare their teams and systems before the new reporting standards are fully in effect.
Key Takeaways
- UAD 3.6 replaces narrative appraisal reports with structured, machine-readable data that improves consistency across automated underwriting systems.
- Better data standardization expands GSE use of property inspection waivers, though eligibility still depends on loan and market conditions.
- Full appraisals remain required for government-backed, jumbo and non-conforming loans and properties with limited or unique data.
- Lenders should align systems, QC processes and staff training with the new requirements before the transition is fully in effect.
Read Nikkita's full article in MBA Newslink for a deeper look at how UAD 3.6 will reshape collateral workflows across the mortgage industry.
Nikkita Phanda is SVP of Digital Operations at Class Valuation, where she leads efforts to modernize appraisal workflows and advance data-driven collateral solutions across the mortgage industry.