Fannie Mae and Freddie Mac Delay UAD Appraisal Mandate
Lenders may submit legacy appraisal reports until 2027 under a new temporary exception policy.
Updated on Oct. 21, 2026 in Residential
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Fannie Mae and Freddie Mac have introduced a temporary exception to the upcoming UAD 3.6 appraisal mandate. Lenders can continue using legacy 2.6 reports through May 19, 2027, provided they request the allowance.
Why it matters
The change addresses significant concerns regarding limited appraiser capacity to handle the new format. Many industry professionals are delaying the transition due to pending software updates and the risk of aging out of the workforce.
Transitioning to UAD 3.6 is projected to increase appraisal costs by $300, with samples rising from $555 to $850. Orders are also expected to encounter processing delays of three to five days.
The players
Fannie Mae
Fannie Mae is a government-sponsored enterprise that supports the U.S. housing market by providing liquidity to mortgage lenders.
Freddie Mac
Freddie Mac is a government-sponsored enterprise created by Congress to expand the secondary mortgage market in the United States.
The Appraisal Foundation
The Appraisal Foundation is a non-profit organization authorized by Congress to set appraisal standards and appraiser qualifications.
Appraisal Institute
The Appraisal Institute is a global professional association of real estate appraisers that provides education and sets ethical standards.
The details
Lenders must formally request the exception to utilize the 2.6 reporting format, and brokers are required to disclose the potentially higher costs of the 3.6 format to clients. While the legacy reports are permitted, they will lose collateral representation and warranty relief starting March 1.
Timeline
November 2: The original UAD 3.6 mandate takes effect.
March 1: Collateral warranty relief ends for 2.6 appraisal reports.
May 19, 2027: Final deadline for submitting legacy 2.6 appraisal reports.
Culture Shift
This policy pivot highlights the ongoing friction between digital modernization in the mortgage industry and an aging professional workforce. The reliance on legacy systems underscores the practical challenges of enforcing new technical mandates when a large portion of the labor pool is nearing retirement.
Homebuyers should be aware that appraisals under the new UAD 3.6 format may result in higher closing costs and potential delays in the mortgage approval process. Brokers are required to disclose these cost differences, allowing clients to better budget for their home financing needs.
The takeaway
Homebuyers should prepare for potential timeline shifts when securing a mortgage as the industry works through these new appraisal standards. Discussing appraisal format expectations with your lender early in the process can help prevent surprise costs at closing.
Further reading
For additional context on how policy shifts influence market stability, visit the United States Residential section.
Source note: This article includes information reported by Mortgage Professional America Magazine.
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