2025 was a transformative year that strengthened the future of the valuation industry. The rollout of the Uniform Appraisal Dataset (UAD) 3.6 became a headline event, signaling that legacy appraisal forms are being replaced by dynamic data alternatives in a bid to modernize the entire workflow.
Interest-rate relief finally arrived in pockets of the market, giving borrowers renewed purchasing power and lenders room to compete. At the same time, we saw successful segments emerge, particularly in private-lending channels and short-term rentals, thanks to higher margins and niche strategies.
A year of meaningful gains
Class Valuation made big waves in 2025. We launched our CVUE program, which lenders such as Pennymac have already adopted and are seeing measurable gains, and grew our elite panel of top-performing appraisers nationwide.
Through our Class INtelligence initiative, we improved revision-rate metrics and integrated advanced AI capabilities to strengthen quality and efficiency. Class INtelligence also delivered meaningful performance outcomes. Early data shows pre-delivery revisions down 34 percent, post-delivery revisions down 39 percent and average QC cycle times reduced by seven hours. These improvements demonstrate how AI-assisted analytics and structured data are already transforming valuation workflows.
Celebrating industry awards and leadership achievements
This year, several Class team members received industry recognition, including our Chief Operations Officer, Andrew Bough, who was named a 2025 HousingWire Vanguard, a prestigious recognition honoring C-level executives whose leadership is advancing the housing and mortgage finance industry, and Kaushal Shah, our Chief Technology Officer, was one of only two people to receive a 2025 NewsLink Tech All-Star award from the Mortgage Bankers Association.
See our newsroom for more.
What’s ahead for valuations in 2026
In 2026, we anticipate continued momentum as modernization accelerates, technology advances and quality expectations rise. In short, now is the time for lenders to prepare for what lies ahead. Here are the trends we’re seeing for valuations in 2026.
1. Appraisal modernization is gaining momentum
Hybrid and digital appraisals have evolved from experimental concepts to everyday solutions as lenders seek faster turnaround times and more flexible inspection options. These products, including Class Valuation’s Hybrid Appraisal and Digital Appraisal, are finally gaining traction across both retail and private-lending channels. We saw record order volume and lender partisipation in the third quarter. We also started to see significant turn time differences of up to four days between traditional and Hybrid reports. Since forecasts predict a modest housing market recovery in 2026, digital tools, enhanced data and modernization-ready partners will help valuation workflows remain efficient and competitive. Lenders that proactively integrate digitized reporting, structured data feeds and automated review checkpoints will gain an edge as the industry shifts toward data-driven standards with UAD 3.6.
2. The UAD 3.6 overhaul begins now
For lenders who may not be fully immersed in the details, UAD 3.6 is the first significant overhaul of appraisal data, structure and reporting in decades. It replaces the legacy form-driven system with a modern, dynamic data framework designed to support consistency, risk alignment and modernization across the entire valuation lifecycle. In short, it changes how every appraisal is completed, delivered and reviewed, making preparation urgent; not optional.
The GSEs’ rollout timeline reinforces this urgency. Limited production began in September 2025, with broad production runs continuing through November 1, 2026, and the mandate taking effect on November 2, 2026. That means lenders have less than a year to ensure their LOS, QC tools and AMC partners can ingest, display and review structured UAD data without workarounds or manual reformatting. With the Uniform Residential Appraisal Report (URAR) shifting to an entirely new structure, the operational impacts will be felt across underwriting, QC and secondary-market functions.
Delaying preparation invites disruption, especially since appraisers, software providers and lenders all navigate the transition simultaneously. To help lenders stay ahead, Class Valuation built a comprehensive UAD 3.6 Resource Hub, which includes:
- Plain-language explainers of the new data structure
- Side-by-side comparisons of legacy vs. new URAR formats
- Deployment timelines and readiness checklists
- Training materials for lenders, appraisers and operations teams
- On-demand webinars, FAQs and evolving updates from the GSEs
3. QC moves upstream in 2026
As UAD 3.6 reshapes how appraisal data is captured, structured and delivered, one of the immediate ripple effects will be felt in quality control (QC). The shift to highly structured, machine-readable data means QC can no longer occur at the end of the process. Issues must be identified during data collection, before assignment and again before delivery to prevent exceptions, repurchase risk and downstream delays. In 2026, QC will become a frontline risk-management function rather than a back-end checkpoint. Lenders that wait to realign their workflows will feel the strain quickly.
This is where modern, data-aware tools become essential. The Class INtelligence Suite was explicitly built for this new environment. It combines anomaly detection, trend analytics and machine-assisted review to pinpoint inconsistencies earlier and more accurately. Early outcomes show measurable improvements, including fewer revisions, faster cycle times and more reliable appraisal files delivered to lenders.
The Class INtelligence Suite supports both the legacy and UAD 3.6 environments, helping lenders transition smoothly without operational disruption as the new data standard comes online.
4. AI becomes operational in valuation
Throughout 2025, AI dominated panels, conference stages and industry conversations, but in 2026, it shifts from a buzzword to a practical, measurable impact. As appraisal data becomes more structured and workflows become more digitized, AI is accelerating core parts of the valuation process in ways that improve accuracy and reduce friction for both lenders and appraisers.
Across the industry, we’re seeing AI tools that can surface anomalies, flag outliers, strengthen fraud detection and reduce manual review time, all while preserving human oversight and professional judgment. The trend isn’t about replacing expertise — it’s about giving appraisers and QC teams better visibility into potential risks earlier in the process.
At Class Valuation, this shift is already underway. Our CVUE platform leverages AI-driven quality insights to help appraisers produce more consistent and well-supported valuations. While the specifics of the technology remain proprietary, CVUE leverages advanced data analysis to improve reliability, reduce rework and enhance confidence in the final report without adding steps or complexity to the workflow.
5. Modern appraisal software becomes essential
Modern appraisal management software (AMS) is no longer a nice-to-have; it's a must-have. Lenders seeking a competitive advantage will transition to platforms that support automation, transparency and real-time visibility across the appraisal process. Look for systems that centralize communications, track every milestone and offer configurable dashboards. Our proprietary Class Marketplace (CMP) order-management system is designed to reduce manual workload and eliminate process friction.
CMP provides lenders with a unified view of every order, giving teams instant insight into status, turn times, communication history and outstanding tasks. Built to streamline handoffs and minimize back-and-forth delays, the platform ensures that lenders, appraisers and borrowers stay aligned throughout the valuation process. CMP’s intelligent routing, integrated messaging and audit-ready tracking also help reduce missed updates and support cleaner and more predictable workflows. With CMP, lenders gain a modern foundation that scales as their businesses grow and as the industry continues to shift toward digitized appraisal delivery.
6. The URAR raises capacity and capability challenges
The URAR tied to UAD 3.6 represents one of the most significant changes the appraisal profession has seen in decades. Appraisers will have to navigate an entirely new reporting structure, data definitions and narrative requirements, all while continuing to work within lenders’ existing processes during a transition period that won’t be clean or linear. Early industry conversations show that many appraisers expect a steep learning curve and increased time per report as they adapt to the new standard.
At the same time, many appraisal software platforms are still working to build full UAD 3.6 support into their systems. Some are signaling concerns about the aggressive GSE timeline, while others may need to rush development to avoid putting appraisers — and lenders — at a disadvantage. This uncertainty increases operational risk for lenders heading into 2026.
Reports also indicate that the number of active field appraisers may fall below 30,000 in the coming years if current attrition trends continue. Combined with the learning curve and software-readiness challenges, this capacity risk makes it critical for lenders to work with an AMC that has the national reach, training infrastructure and technology needed to bridge the gap.
At Class Valuation, we’ve invested heavily in preparing our appraisal panels for the UAD 3.6 environment. We’ve partnered with McKissock to provide UAD-focused training for both staff appraisers and members of our elite panel, and our AI-supported tools — including CVUE and our broader Class INtelligence suite — are already designed to support dual-system workflows during the transition. Lenders working with our nationwide appraiser network can be confident that files are being handled by professionals who are trained, supported and ready for UAD 3.6’s demands.
7. Why the right AMC is essential for 2026 modernization
Modernization only works when every part of the valuation ecosystem evolves together. That’s why lenders need AMC partners with transparent, technology-enabled processes and a genuine willingness to adapt. As modernization unlocks new capacity and efficiency, the right AMC becomes a competitive asset rather than just a vendor.
Class Valuation is already operating at this next level. We were among the first AMCs to scale hybrid and digital appraisal solutions, providing lenders with faster turn times, flexible inspection options and structured data collection aligned with UAD 3.6. Our technology stack, which includes AI-assisted QC, image analytics and automated data validation, supports the production of cleaner reports with fewer revisions and more predictable delivery. And with the largest nationwide appraiser network in the country, Class Valuation can deploy modernization-ready appraisers at scale, ensuring consistency and coverage in every market.
As these modernization shifts accelerate, valuation stops being a cost center and becomes a strategic advantage. With AI-enhanced QC, digital workflows and improved delivery standards, lenders who treat valuation as a strategic lever see fewer bottlenecks, more consistent pricing narratives and smoother borrower experiences.
8. Developing a better borrower experience in 2026
Borrowers expect clarity, speed and transparency now more than ever. Many who were sidelined over the past few years are re-entering the market with heightened expectations and far less tolerance for delays or uncertainty. Lenders that strengthen communication, clearly explain what happens during the inspection and appraisal stages and eliminate avoidable bottlenecks can transform the valuation step from a frustration point into a differentiator.
In 2026, improving the borrower experience is not just about faster turn times — it’s about providing visibility, setting expectations early and reducing unnecessary friction. When valuation partners offer consistent communication, modernized workflows and predictable timelines, borrowers feel more informed and more confident throughout the mortgage process. And that confidence ultimately reflects on the lender, driving stronger satisfaction and long-term loyalty.
Key takeaways for 2026
2026 will not be a repeat of 2025, but it will build upon the momentum and modernization that began this year. Lenders who prepare now for the next wave of valuation change will be best positioned to lead — not react. This means embracing hybrid and digital appraisal workflows, getting ahead of UAD 3.6’s mandatory updates, strengthening QC earlier in the process and leaning into AI-driven tools that improve accuracy and efficiency.
Modernization, structured data, transparency and alignment matter more than ever. This is the time to ready your workflows, train your teams and choose the right partners so you can turn change into opportunity.
If you’re looking to modernize your valuation strategy in 2026 — with faster turn times, deeper transparency and technology built for what’s next — partner with Class Valuation. We’re ready to support your team through every stage of the industry’s most significant changes.