GSEs Granted Appraisal Reporting Exception

Homeowners and lenders gain more time to transition to new mortgage appraisal standards before next year's mandatory update.

Updated on Sept. 30, 2026 in Residential

Isometric editorial illustration of a simple house frame model, representing a regulatory shift in mortgage appraisal standards. — Fannie Mae and Freddie Mac have granted a transition period allowing mortgage lenders to continue using older appraisal formats through early 2027. AI Illustration. Upload story photo >

Live Poll

Do you trust that new mortgage appraisal requirements will ultimately benefit the home-buying process?

Fannie Mae and Freddie Mac have introduced a transition period for lenders to adopt the updated Uniform Appraisal Dataset (UAD) 3.6 format. This shift allows mortgage sellers to continue using the older UAD 2.6 version through early 2027 while preparing for full compliance.

Why it matters

The extension provides necessary breathing room for the mortgage industry to update systems and workflows, reducing the risk of processing delays for borrowers. Aligning these standards helps ensure that home value assessments remain consistent across the secondary mortgage market.

Between March 1 and May 20, 2027, UAD 2.6 appraisal submissions will trigger risk scores of 999 in the Collateral Underwriter system and 99 in Loan Collateral Advisor. These figures highlight the technical shift for loans submitted during the final phase of the transition.

The players

Fannie Mae

A government-sponsored enterprise that purchases and guarantees home loans to provide liquidity for mortgage lenders.

Freddie Mac

A government-sponsored enterprise that supports the housing market by purchasing mortgages and issuing mortgage-backed securities.

The details

Lenders and aggregators must secure specific policy exceptions from each GSE to utilize the UAD 2.6 format beyond November 2026. Submitting older appraisal reports during the reduced functionality period starting March 2027 carries significant implications, as these loans will lack standard representation and warranty relief. Consequently, originators must coordinate with their partners to ensure all appraisals meet the new UAD 3.6 requirements before the final May 2027 deadline.

Nov. 2, 2026: The exception period begins for UAD 2.6 appraisal submissions.
Feb. 28, 2027: The initial exception period for UAD 2.6 submissions ends.
March 1, 2027: The reduced functionality period begins for UAD 2.6 submissions.
May 20, 2027: UAD 3.6 becomes mandatory for all new appraisal submissions.

Money Landscape

This adjustment represents a recalibration of the GSEs' technology roadmap for residential mortgage appraisals. It follows the established industry trend of digitizing and standardizing property data to improve risk assessment accuracy.

Borrowers in the pipeline should confirm their lender is prepared for the transition to prevent potential processing hurdles. If you are currently refinancing or buying, discuss any potential impacts on your appraisal timeline with your loan officer or a qualified financial professional.

The takeaway

The transition to UAD 3.6 is a technical update designed to standardize how property values are reported across the U.S. mortgage market. Monitor your loan status closely if you are applying for a mortgage during the early 2027 transition phase, and consult a professional regarding appraisal-related requirements.