The policy exception that Fannie Mae and Freddie Mac announced on Sept. 30 has raised questions about the UAD 3.6 transition, but it doesn’t change the destination. The mandate still takes effect Nov. 2. Lenders that aren’t ready can request a one-time exception to keep delivering UAD 2.6 reports until May 19, 2027. It isn’t automatic. Lenders must submit an implementation plan, and starting March 1, 2027, any UAD 2.6 report delivered under the exception loses certain rep-and-warranty relief. That makes the exception a fallback. Many lenders are moving ahead on the original timeline anyway, and for them, the work now is building familiarity with the new standard across appraisers, underwriters and operations teams.  

I have spent the past year overseeing hybrid appraisal programs and UAD 3.6 readiness across a national network. Most of the questions I get come back to one issue: what happens to the appraiser?

What changes with the inspection

UAD 3.6 is a step forward for the industry, and it changes what the inspection captures. Property data is documented in greater detail, including measurements for every room and a more systematic record of interior and exterior characteristics, all organized into a standardized dataset that ties out to a new dynamic report format. Lenders, appraisers and appraisal management companies are all getting to know those requirements at the same time. 

What it does not change is the appraiser’s role. The appraiser will still sign the report and form the independent opinion of value. The appraiser will still apply professional judgment to determine whether the data makes sense and document their reasoning when it does not. None of that is going away.

Understanding that distinction is what makes hybrid appraisals worth a serious look right now. When the appraiser’s analytical role is preserved and a trained property data collector handles the inspection, the result is a different workflow, and one already built around the kind of standardized protocols UAD 3.6 formalizes.

Why hybrid accuracy holds up

The concern I hear most often about hybrid appraisals is that if the appraiser is not physically on-site, accuracy suffers. It is an understandable instinct, but it does not reflect how well-run hybrid programs operate.

Appraisers also raise a fair question about accountability: they sign the report, but they didn’t collect the data. That’s why inspection standards, data collector training and the appraiser’s ability to request more information are what make a hybrid program work.

In a well-run hybrid program, property data collectors follow standardized inspection protocols that already align with UAD 3.6 requirements. They measure every room, walk through the entire property, capture the required photos, document the condition and quality characteristics and generate an ANSI Z765-compliant floor plan. The property data that arrives for appraiser review is organized to the UAD 3.6 standard and validated by Fannie Mae or Freddie Mac before the appraiser completes the report.

That consistency matters. Every hybrid data collection follows the same protocol, with the same required photos and the same documented property details, giving appraisers a reliable foundation for their analysis. 

Standardization also means issues are documented the same way on every file. Property data collectors are trained to capture specific condition and quality indicators each time, so those issues reach the appraiser early enough to be addressed before closing, when they are far less costly to resolve than after the loan is sold. 

The practical case for moving now

Hybrid appraisals can be two to three days faster than a UAD 3.6 traditional appraisal, depending on the market and assignment. More than 90% of GSE-eligible loans qualify for hybrid.

That matters because once the mandate takes effect, every appraisal on a GSE loan must meet the new standard. Hybrid gives lenders a known path: a way to get hands-on with UAD 3.6 now, with fewer unknowns, while the whole industry builds familiarity with the new format. 

Whatever your mix of traditional and hybrid appraisals, stress-testing it before the new standard applies gives your team time to work with the data, your underwriters time to become comfortable with the format and your operations team time to refine the workflow. For lenders using the exception, that window closes May 19, 2027.

That means confirming your appraiser panel is producing UAD 3.6 reports today, training underwriters on the new format before volume arrives and setting clear expectations with borrowers and partners. For some files, hybrid will be part of that plan. 

Adopt on your own terms 

UAD 3.6 will change what the inspection captures on every file. As data collection becomes more standardized, the appraiser’s judgment and analysis become an even more valuable part of the process. Hybrid appraisals were built for that division of labor, and their data collection already aligns with the new standard’s property data requirements.

The window to adopt on your own terms is still open. Hybrid won’t fit every file, and complex or atypical properties will still call for a traditional appraisal. But lenders that decide now how hybrid fits their workflow will have a proven option in place as UAD 3.6 takes hold.

Nikkita Phanda is senior vice president of product and enablement at Class Valuation, where she oversees digital and alternative valuation operations and product, integration and migration support. She is responsible for bridging operations and technology to ensure successful product adoption, operational processes and client experiences.