10/09/2026
Friends, a quick heads-up on a change to home appraisals that may affect your upcoming transactions.
What's changing: Starting November 2, 2026, Fannie Mae and Freddie Mac require a redesigned appraisal report (the new URAR, built on UAD 3.6) for conventional loans. It replaces the long-standing static form with a more structured, standardized report.
Cost: Fees haven't been officially set. Some appraisers (about 50%) expect increases because the new report takes more time, and it requires new systems. I’ll keep you posted on this.
Lead Time: Appraisers are still learning the new format, so some early reports may take longer – at least initially. Appraisals with errors will get caught by QA audits and may need to go back to appraisers for corrections, adding a few days. Orders placed right before the deadline are at the greatest risk of delay (get your appraisals ordered EARLY, like we do).
Accuracy and values: The new format collects more consistent, detailed data on property condition, features, and comparable sales. But it doesn't change how value is determined. Values should still reflect the market, and it's too early to say whether accuracy will improve. Hope so – we do see variances that frustrate buyers and sellers and their agents, and lenders.
Appraiser credentials: There's no new license or certifications for appraisers to obtain – just some additional continuing ed.
What to expect: This mainly effects conventional loans. Build a little cushion into your timelines. Also it’s best to plan for a fee increase.
How The New Report Will Look/Read: I’ve seen the new layout. I think it’s a little more intuitive, and should be easier for everyone (including clients) to read.
Better or Worse?? I can’t tell. I’ll let you know. Usually, we don’t know if it’s better or worse until we crash head first into an issue during a transaction. But I always believe more data/info is GOOD.
Some lenders will apply for a temporary exception on the new requirements. Exceptions will be issued on an individual company basis. Just to be sure, assume most lenders will be required to meet the new requirements by the Nov 2nd deadline.
Still a great time to buy. So if you need a home, just go buy a home. Sellers are negotiating. HOWEVER this unique market requires experienced representation. If you need a recommendation for a good qualified Agent, let me know.
Scott
903-258-5503