FHA opens optional appraisal submission period for UAD 3.6

Effective immediately, lenders participating in FHA's Title II forward mortgage and Home Equity Conversion Mortgage (HECM) programs can opt to use UAD 3.6. During this optional phase, lenders have the flexibility to continue using the legacy UAD 2.6 format for some or all appraisals. However, a single FHA case number must adhere to one format for all subsequent appraisal submissions; mixing formats is prohibited.

This FHA transition window runs parallel to a separate, limited-time waiver introduced by Fannie Mae and Freddie Mac. This waiver permits certain approved sellers to continue using the UAD 2.6 format until mid-2027. The mandatory transition date for the government-sponsored enterprises (GSEs) is November 2.

Bob Broeksmit, president and CEO of the Mortgage Bankers Association (MBA), expressed support for the temporary exception, stating it will provide lenders and appraisers with additional time to prepare for the significant changes associated with UAD 3.6. He anticipates this will help prevent disruptions, extended wait times, and increased costs for borrowers.

The FHA has not yet announced a mandatory adoption date for UAD 3.6, indicating that it will continue to evaluate lender readiness before making a final decision.