Understanding UAD 3.6
A Practical Reference Guide for Lenders
The transition to UAD 3.6 introduces new terminology, updated appraisal reporting requirements, and a new way of identifying appraisal assignments. While many industry resources explain the technical aspects of UAD 3.6, they often leave lenders asking a more practical question:
What do I actually need to know?
This guide was developed specifically for lenders. It focuses on the practical information needed to successfully order, receive, review, and manage UAD 3.6 appraisal reports. Rather than explaining how the standard was developed, this guide is intended to help lending professionals understand the decisions they need to make throughout the appraisal process.
Exactus Insight
Most appraisal issues occur before the appraiser is ever assigned. Taking a few extra minutes to verify the required order information can prevent unnecessary revisions, scheduling delays, and underwriting questions later in the loan process.
Who Should Use This Guide?
Loan Officers
Understand appraisal options before discussing valuation requirements with borrowers.
Loan Processors
Verify appraisal order information and reduce revisions.
Underwriters
Understand report types, delivery methods, and UAD terminology.
Operations Teams
Develop consistent appraisal ordering procedures throughout your organization.
UAD 3.6 modernizes the way residential appraisal reports are ordered, completed, delivered, and analyzed. Rather than selecting legacy appraisal forms, lenders now identify standardized appraisal attributes that determine the appropriate appraisal workflow.
| Topic | Description |
|---|---|
| Ordering | Uses standardized order attributes instead of legacy appraisal form selection. |
| Report Types | URAR, URAR Update and URAR Completion replace many familiar report names. |
| Valuation Methods | Traditional, Desktop, Exterior and Hybrid determine how the appraisal is developed. |
| Delivery | Reports are delivered using standardized XML data and supporting documents. |
| Goal | Create consistent appraisal data across lenders, appraisers, investors and technology providers. |
Exactus Tip
Although the ordering process has changed, your objective has not. Your responsibility is to accurately identify the property and valuation requirements. Exactus and your appraisal platform handle the remaining workflow.
One of the biggest changes introduced with UAD 3.6 is that lenders no longer select legacy appraisal forms such as the 1004 or 1073. Instead, lenders provide standardized order information that allows the appraisal platform to determine the correct appraisal workflow.
Think About It Differently
Instead of asking “Which appraisal form should I order?”, ask “What characteristics describe this loan and property?” Those selections determine the appropriate UAD 3.6 appraisal assignment.
| Previous Ordering Process | UAD 3.6 Ordering Process |
|---|---|
| Choose a specific appraisal form (1004, 1073, 2055, etc.) | Identify standardized appraisal attributes and allow the system to determine the appropriate report. |
What Information Will I Need?
Most lenders will continue providing much of the same information they always have, but it will now be organized using standardized UAD 3.6 fields rather than legacy appraisal products.
Loan Information
Loan program, transaction type, occupancy, and other loan-specific details.
Property Information
Property type, construction type, location, and other collateral characteristics.
Valuation Method
Traditional, Desktop, Exterior, or Hybrid based on investor eligibility.
Report Type
URAR, URAR Update, or URAR Completion depending on the assignment.
Every UAD 3.6 appraisal order begins with four primary selections. These fields determine how the appraisal assignment is configured and completed.
| Field | Description |
|---|---|
| Loan Type | Identifies the mortgage program associated with the appraisal request. |
| Property Type | Identifies the type of real estate being appraised. |
| Property Valuation Method | Determines how the appraiser will develop the opinion of value. |
| UAD Report Type | Specifies the type of appraisal report being requested. |
Typical Ordering Workflow
Step 1
Select the appropriate Loan Type.
Step 2
Select the correct Property Type.
Step 3
Select the required Property Valuation Method.
Step 4
Select the appropriate UAD Report Type.
Exactus Best Practice
Verify each of these four fields before submitting an appraisal order. Most order revisions occur because one of these selections was entered incorrectly or changed after the appraisal had already been assigned.
Under UAD 3.6, the Property Valuation Method identifies how the appraiser develops the opinion of value. The valuation method selected affects the inspection requirements, available data sources, and ultimately the appraisal assignment itself.
| Method | Interior Inspection | Exterior Inspection | Description |
|---|---|---|---|
| Traditional | ✔ Required | ✔ Required | A complete appraisal performed by a licensed appraiser with both an interior and exterior inspection of the subject property. |
| Desktop | No | No | The appraiser develops the opinion of value using reliable property data, public records, MLS information, floor plans, photographs and other available sources without performing a physical inspection. |
| Exterior | No | ✔ Required | The appraiser performs an exterior inspection while relying on other credible sources for interior characteristics. |
| Hybrid | Varies | Varies | Property information is collected by an approved third-party property data collector while the licensed appraiser completes the analysis and opinion of value. |
Important Reminder
The selected valuation method should always align with investor requirements and loan eligibility. Not every mortgage program permits every valuation method.
Questions to Consider Before Ordering
- Has the investor authorized the selected valuation method?
- Does the property qualify for a Desktop or Hybrid appraisal?
- Are there unique property characteristics requiring a full Traditional appraisal?
- Will the selected valuation method satisfy underwriting requirements?
The UAD Report Type identifies the appraisal report being requested. While the report names have changed under UAD 3.6, the purpose of each assignment remains familiar to most lenders.
| Report Type | Description | Typical Use |
|---|---|---|
| URAR | Complete residential appraisal report. | Most purchase and refinance transactions. |
| URAR Update | Updates a previously completed appraisal assignment when permitted. | Eligible appraisal updates. |
| URAR Completion | Documents completion of repairs or construction identified in a previous appraisal. | Repair inspections and construction completion. |
URAR
Use for most new residential appraisal assignments.
URAR Update
Used only when updating an existing eligible appraisal.
URAR Completion
Used to certify repairs or construction have been completed.
Exactus Tip
If you’re unsure which report type applies to your loan, contact Exactus before submitting the appraisal order. Confirming the report type upfront is significantly easier than modifying an assignment after work has begun.
The table below provides a quick reference for understanding when each valuation method is commonly considered. Final eligibility is always determined by investor guidelines and program requirements.
| Scenario | Typical Valuation Method |
|---|---|
| Standard Purchase Loan | Traditional |
| Standard Refinance | Traditional |
| Desktop Eligible Transaction | Desktop |
| Exterior Inspection Required | Exterior |
| Hybrid Eligible Assignment | Hybrid |
Remember
This table is intended as a general reference only. Lenders should always follow investor-specific appraisal eligibility requirements when selecting a Property Valuation Method.
Construction Type is one of the standardized data elements reported under UAD 3.6. Selecting the correct construction type helps ensure the appraisal accurately reflects the subject property and supports proper comparable sale selection.
| Construction Type | Description |
|---|---|
| Site Built | A home constructed on-site using traditional building methods. |
| Manufactured Home | A factory-built home constructed to the HUD Manufactured Home Construction and Safety Standards. |
| Modular Home | A factory-built home assembled on a permanent foundation and constructed to applicable state or local building codes. |
| On-Frame Modular | A modular home constructed on a permanent steel frame that remains part of the structure. |
| Container Home | Residential improvements utilizing shipping containers as structural components. |
| 3D Printed Home | Residential construction utilizing additive manufacturing (3D printing) technology. |
Exactus Note
Factory-built housing is not always manufactured housing. Manufactured, Modular, and On-Frame Modular homes each have different construction characteristics and should be identified correctly when placing the appraisal order.
Before Submitting the Order
✓ Verify Construction Type
Confirm the construction type through available property records whenever possible.
✓ Avoid Assumptions
Do not assume all factory-built homes are manufactured homes.
✓ Notify the Appraiser
If there are unique construction characteristics, include them in the order comments.
UAD 3.6 separately identifies the number of primary Living Units and the number of Accessory Dwelling Units (ADUs). Correctly reporting these values helps the appraiser understand the property before beginning the assignment.
Living Units vs. ADUs
| Example Property | Living Units | ADUs |
|---|---|---|
| Single Family Residence | 1 | 0 |
| Single Family Residence + Detached Guest House | 1 | 1 |
| Duplex | 2 | 0 |
| Triplex | 3 | 0 |
| Fourplex | 4 | 0 |
Examples of Common ADUs
Detached Guest House
A separate residential structure located on the same parcel.
Garage Apartment
Living quarters constructed above or attached to a garage.
Basement Apartment
A self-contained living area with kitchen and bathroom facilities.
Backyard Cottage
A secondary residential structure built on the same lot.
Common Ordering Mistake
Do not include an ADU in the Living Unit count. UAD 3.6 reports these values separately.
Questions to Consider
- Does the property contain more than one residential structure?
- Does the secondary structure include independent living facilities?
- Does the secondary structure contain a kitchen?
- Does the secondary structure contain a bathroom?
- Should the appraiser be made aware of the additional dwelling before the inspection?
Beyond the core ordering fields, UAD 3.6 standardizes many additional property characteristics. While lenders are not responsible for completing every field, understanding these data elements can improve communication with appraisers and simplify report review.
| Characteristic | Description |
|---|---|
| Site Size | The size of the parcel being appraised. |
| Zoning | The property’s applicable zoning designation. |
| Utilities | Available utility services such as water, sewer, electricity, gas and septic. |
| View | Any notable view influences that may affect market value. |
| Location | Characteristics of the property’s surrounding neighborhood and market area. |
| Quality | The quality of materials and workmanship used in construction. |
| Condition | The appraiser’s assessment of the property’s current physical condition. |
| Gross Living Area | The finished above-grade living area reported using applicable measurement standards. |
Exactus Insight
Understanding these standardized data elements helps lenders ask better questions, review appraisal reports more efficiently, and communicate more effectively with appraisers throughout the appraisal process.
UAD 3.6 changes not only how appraisal reports are completed, but also how they are delivered. Instead of receiving only a PDF appraisal report, lenders may receive multiple file types that work together to support both manual review and automated technology systems.
Typical UAD 3.6 Delivery Package
| File Type | Required | Description |
|---|---|---|
| XML | Yes | The standardized appraisal dataset used by lender technology platforms, investors and the GSEs. |
| Usually | A human-readable version of the completed appraisal report used by loan officers, processors and underwriters. | |
| ZIP Package | Often | A compressed delivery package containing the XML appraisal dataset, PDF report and any supporting documents. |
Exactus Note
Most lenders will continue reviewing the PDF appraisal report exactly as they do today. XML files are primarily consumed by integrated technology platforms and investor systems.
Why XML Matters
Standardized Data
Provides a consistent appraisal dataset across the mortgage industry.
Automation
Allows lender systems to import appraisal data automatically.
Quality Control
Supports automated validation and quality assurance reviews.
Future Ready
Creates a foundation for future appraisal modernization initiatives.
Will every appraisal immediately become UAD 3.6?
Implementation follows GSE and investor timelines. During the transition period, lenders may work with both legacy appraisal formats and UAD 3.6 reports depending on loan eligibility and investor requirements.
Will I still receive a PDF appraisal?
In most situations, yes. The PDF remains the primary document reviewed by lending personnel while XML supports automated technology systems.
Do I need to open the XML file?
Most users do not. XML files are generally processed automatically by integrated lender systems.
Will appraisers inspect properties differently?
Inspection requirements are determined by the selected Property Valuation Method and investor requirements, not by UAD 3.6 itself.
Has the appraisal process changed?
The fundamental appraisal process remains the same. UAD 3.6 primarily standardizes how appraisal information is organized, reported and delivered.
Do I still choose an appraisal form?
No. Under UAD 3.6, lenders identify standardized appraisal attributes rather than selecting legacy appraisal forms.
Can lenders continue using existing appraisal review procedures?
Most existing review processes remain applicable, although organizations should ensure their technology and procedures support UAD 3.6 appraisal delivery.
Four Required Ordering Fields
| Field | Purpose |
|---|---|
| Loan Type | Mortgage program associated with the assignment. |
| Property Type | Type of property being appraised. |
| Property Valuation Method | How the appraisal will be completed. |
| UAD Report Type | The appraisal report being requested. |
Valuation Methods
| Method | Inspection Requirement |
|---|---|
| Traditional | Interior & Exterior |
| Desktop | No Physical Inspection |
| Exterior | Exterior Only |
| Hybrid | Varies |
Remember
- Verify all four ordering fields before submitting every appraisal order.
- Select the correct Property Valuation Method.
- Report ADUs separately from Living Units.
- Confirm Construction Type whenever possible.
- Understand that XML supports lender technology while the PDF supports human review.
Exactus Best Practice
Most appraisal order revisions can be avoided by verifying property information before assignment. A few extra minutes during order entry often prevents days of delay later in the loan process.
The following glossary defines many of the common terms lenders, processors, underwriters and appraisal professionals will encounter throughout the UAD 3.6 appraisal process.
| Term | Definition |
|---|---|
| Accessory Dwelling Unit (ADU) | A secondary residential dwelling located on the same parcel as the primary residence. |
| ANSI | The American National Standards Institute measurement standard used for reporting Gross Living Area. |
| Appraisal Assignment | The appraisal service requested by the lender. |
| Comparable Sale | A recently sold property used to develop the opinion of market value. |
| Construction Type | The method used to construct the dwelling, such as Site Built, Manufactured or Modular. |
| Desktop Appraisal | An appraisal completed without a physical inspection by the appraiser. |
| Exterior Appraisal | An appraisal utilizing an exterior inspection only. |
| Gross Living Area (GLA) | The finished above-grade residential living area reported using applicable measurement standards. |
| Hybrid Appraisal | An appraisal completed using third-party property data collection with analysis by a licensed appraiser. |
| Living Unit | A primary residential dwelling unit. |
| Property Type | The category of property being appraised such as Single Family Residence, Condominium or Manufactured Home. |
| Property Valuation Method | The methodology used to complete the appraisal assignment. |
| Traditional Appraisal | An appraisal completed with both an interior and exterior inspection by the appraiser. |
| UAD | Uniform Appraisal Dataset. |
| URAR | Uniform Residential Appraisal Report. |
| URAR Completion | A report documenting completion of repairs or construction. |
| URAR Update | A report updating an eligible previously completed appraisal. |
| USPAP | Uniform Standards of Professional Appraisal Practice. |
| XML | A structured data file used for electronic appraisal delivery and system integration. |
| ZIP Package | A compressed delivery package containing the appraisal files and supporting documents. |
The following organizations publish official guidance, specifications and implementation resources related to UAD 3.6.
| Organization | Resource |
|---|---|
| Fannie Mae | UAD 3.6 Implementation Resources, Selling Guide updates and appraisal modernization information. |
| Freddie Mac | Guide Bulletins, implementation timelines and appraisal modernization resources. |
| MISMO | Residential appraisal data standards and XML implementation guidance. |
| Appraisal Standards Board | Uniform Standards of Professional Appraisal Practice (USPAP). |
Exactus Recommendation
Always refer to your investor’s published requirements and implementation timelines when determining UAD 3.6 eligibility and appraisal requirements.
Exactus Appraisal Management partners with mortgage lenders nationwide to deliver responsive, compliant appraisal management solutions. Our team works closely with lenders to simplify appraisal ordering, improve communication and help organizations successfully navigate industry changes such as UAD 3.6.
Nationwide Coverage
Residential appraisal management services across the United States.
UAD 3.6 Ready
Ordering workflows and review processes designed to support appraisal modernization.
Experienced Team
Dedicated account managers and appraisal professionals focused on lender success.
Technology Focused
Integrated solutions that support modern lending workflows and electronic appraisal delivery.
Need Assistance?
If your organization has questions about UAD 3.6 implementation or appraisal ordering, the Exactus team is available to help.
Exactus Appraisal Management
Website: exactusamc.com
Email: support@exactusamc.com
Exactus Appraisal Management
This guide is intended as an educational resource for mortgage lending professionals. UAD 3.6 requirements, investor guidelines and implementation timelines are subject to change. Always consult current investor documentation and applicable agency guidance when originating or underwriting mortgage loans.
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