Newz: UAD 3.6 – 10 Biggest Changes,
UAD 3.6 – Mixed Feedback
April 17, 2026
What’s in This Newsletter (In Order, Scroll Down)
- LIA AD: The Fine Print
- The 10 Biggest Changes in the New URAR, By Kevin Hecht
- Tiny Vermont Home That Spans Less Than 1,000 Square Feet Hits the Market for the Huge Price of $1.2 Million
- Why Appraisers Write in the Third Person—and Whether First-Person Reporting Improves Clarity, By Jamie Owen
- MY AD: Appraisal: Profession, Industry or Trade? by Martin Wagar
- Rollout of 3.6 Receives Mixed Feedback, By Isaac Peck, Publisher Working RE
- Starter Homes Are Disappearing—Are Modular and Manufactured Houses the Answer?
- MBA: Mortgage applications increased 1.8 percent from one week earlier
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The 10 Biggest Changes in the New URAR
By Kevin Hecht
Excerpts: The redesign of the Uniform Residential Appraisal Report is the largest overhaul of residential appraisal reporting in nearly three decades.
While the underlying appraisal principles remain the same, the structure, workflow, and level of detail in the report are changing in meaningful ways.
Here are the ten changes appraisers are most likely to notice.
Topics:
1. One Dynamic Report Replaces Multiple Legacy Forms
2. Reports Will Adapt to the Assignment
3. Data Fields Are More Granular
4. Commentary Is Integrated Throughout the Report
5. Scope of Work Drives Report Content
6. Inspection Observations Are More Structured
7. The Sales Comparison Approach Is Still Central
8. Software Platforms Will Change
9. Reports Will Include Both Narrative and Structured Data
10. The Transition Will Take Time
Summary
The new URAR represents a fundamental shift in residential appraisal reporting, moving the profession away from rigid, form‑driven responses and toward clearer, more transparent analysis.
While the core appraisal principles remain unchanged, how appraisers communicate their reasoning, observations, and conclusions will look different under the redesigned framework.
By understanding the most significant changes now, appraisers can better prepare for the transition and continue producing credible, well‑supported appraisal reports in an evolving reporting environment.
To read more, Click Here
My comments: Good topics list and summary. Read the details. Well written and understandable.
Tiny Vermont Home That Spans Less Than 1,000 Square Feet Hits the Market for $1.2 Million
Excerpts: Studio, 1 bath, 950 sq.ft., 23.5 acre lot, Built in 2020
Tiny home that is perched on a beautiful plot of land overlooking Vermont’s Stratton Mountain has hit the market for the whopping price of $1.2 million—offering a rare opportunity to create a much larger rustic retreat in one of the country’s most beautiful spots.
Sprawling across more than 23 acres that come complete with their own mountain bike trails, the Winhall, VT, property is “primed for future expansion,” the listing notes.
Currently, however, it is home to just one tiny structure: a 950-square-foot studio residence that was custom built as an “outdoor sanctuary” by The Wadsworth Co.
Sprawling across more than 23 acres that come complete with their own mountain bike trails, the Winhall, VT, property is “primed for future expansion,” the listing notes.
Conceived to complement the surrounding landscape, rather than stick out from it, the property features an elegant wooden-and-metal exterior, and a soaring multistory layout that almost mirrors the shape of the mountain behind it.
To read the listing with 29 photos, video tour and aerials, Click Here
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Why Appraisers Write in the Third Person—and Whether First-Person Reporting Improves Clarity
By Jamie Owen
Excerpts: Most appraisal reports that I read contain language such as, “the appraiser (or your appraiser) has inspected the subject property” or “the appraiser (or your appraiser) has analyzed the available data.” While this style of writing is widely accepted within the profession, it raises an important question: why do appraisers write in the third person, and does this approach enhance or hinder effective communication and accountability?
The use of third-person language in appraisal reporting is largely a historical practice. When I began my apprenticeship in the late 1990’s, the appraisers who trained me wrote this way. And so did I for many years.
In some cases, third-person writing may also be tied to perceived liability concerns. The phrasing “the appraiser concludes” can create a sense of professional distance, though in practice, responsibility for the report remains with the signing appraiser regardless of stylistic choices. The report is certified, and accountability is clearly established independent of narrative voice.
Despite its prevalence, third-person writing presents several limitations. It can create unnecessary distance between the appraiser and the analysis, potentially making the report feel generic or impersonal. This distancing effect may reduce clarity, particularly in complex assignments where the reasoning process is critical to the reader’s understanding. For example, the statement, “The appraiser determined that the adjustment was supported by market data using the following method(s) in my analysis”, is less direct than “I determined that the adjustment was supported by market data using the following method(s) in my analysis.” The latter more clearly communicates authorship and accountability.
I have found that writing in the first person helps the reader understand that I conducted my work credibly and that I stand by my analysis. I am ready to defend my analysis if required. I think it portrays more confidence without sounding egotistical.
To read more, Click Here
My comments: Excellent discussion of using the first person in appraisal reports. I have never read a more comprehensive analysis. I have never been comfortable writing in the third person style, but usually did it many years ago, as it was “standard”. I started using “I” in my appraisal narrative reports and then added it to my residential form reports. I started writing this newsletter and my monthly newsletter in the early 1990s and started using “I” a lot more. As you can see, I use “I” and “my” in these weekly newsletters.
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Appraisal: Profession, Industry or Trade?
By Martin Wagar, MNAA, ASA, IFA, RAA
Editor’s comments: This issue is very controversial with many different opinions. The first printed comments were in 1932, in the Appraisal Journal, published by AIREA, (predecessor of the Appraisal Institute) Volume 1, Number 1 and republished in the October 1982 edition.
As the chair of Professional Conduct for National Association of Appraisers, I
browse social media appraisal groups to stay in touch with current appraisal issues between lenders, agents, Appraisal Management Companies and appraisers. I am struck and saddened by the consistent mention and significance placed on “turn time.”
While I agree important, it should never be placed ahead of quality.
We should begin by considering real estate appraisers as members of a
Profession, Industry or Trade.
INDUSTRY
“Industry refers to an economic activity that deals with the production of goods like iron and steel industry, extraction of minerals like coal mining industry and the provision of services like tourism industry. The industry is divided into three sectors as primary, secondary, and tertiary sectors.”
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Rollout of 3.6 Receives Mixed Feedback
By Isaac Peck, Publisher WorkingRE
Excerpts:
Time and Fees
One of the most common concerns among appraisers is that UAD 3.6 will dramatically increase the time required to complete a report, with some estimating three times the workload. The panelists acknowledged the concern, but the actual numbers from the field tell a more specific story.
In mid-February, AVSociety published a video panel hosted by Gynell Vestal titled “UAD 3.6 Appraisals: What Appraisers Are Seeing in Day-to-Day Work,” featuring appraisers who have completed 3.6 assignments alongside software developers whose platforms have been GSE-verified. Among the panelists were Billy Lumadu, a staff appraiser at IRM Solutions who has completed 11 UAD 3.6 assignments, Jim Stafford, an independent appraiser in Frisco, Texas, with two completed, and Winstead.
Lumadu’s first report took roughly four and a half to five hours. By his tenth and eleventh, he was completing single-family assignments in about an hour and a half. Multifamily properties still take longer. His most recent two-unit report ran four to five hours, and a four-unit report took close to a full day.
Stafford’s first report took two days. “Every time I got frustrated, I had to walk away for a while,” he said. His second took about a day. Both appraisers said the breakthrough came around the fifth or sixth assignment. “Once I got to like that six or seven range, it was a little bit better,” Lumadu said.
A lot of that front-end time involves manual data entry. Without MLS import, comp data, or automated field population, appraisers are typing everything by hand. “Right now, you have to mainly enter everything,” Lumadu said. “It’s tedious. I mean, it is tedious.”
Stafford added that using his software’s inspection app at the property took him “twice as long as it normally would” because the tools were not yet fully functional. The appraisers agreed that once integration and automation tools are in place, the time gap should narrow. “My theory is once we get over this initial hurdle and the software companies are able to bring out their full suite of tools they have planned, it’s not going to take us that much longer to complete a 3.6,” Stafford said, “and it’s going to feel a lot more natural once you get the hang of it.”
To read more, Click Here
My comments: Both of these appraiser recordings and more appraisal recordings are available on the American Valuation Society Youtube channel. Type the association name into the Youtube search box.
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Starter Homes Are Disappearing—Are Modular and Manufactured Houses the Answer?
Realtor.com article
Excerpts: A traditional detached two-bedroom single-family house—often called “a starter home”—costs upward of $1 million in a majority of states today.
It’s a contradiction rich with irony: Starter homes were meant to be a leg up to equity and long-term stability, paving the way to generational wealth for Americans. But a family today needs $250,000 in savings for a down payment, a combined income of close to $225,000, and enough cash flow to comfortably float a monthly mortgage payment of $6,400.
Who starts out like that?
Very few people, it turns out. Which is partly why the share of first-time homebuyers has shrunk to a historic low of 24% of home sales in 2024, according to research from the National Association of Realtors®.
But what many might not realize is that there’s a middle ground between buying a traditional single-family home and renting indefinitely that’s been hiding in plain sight: manufactured and modular homes.
“Many manufactured homes remain affordable options in lower-cost markets, many of which have experienced strong, sustained price appreciation as overall housing affordability has worsened,” explains Realtor.com® senior economic research analyst Hannah Jones.
And in the past 24 years, manufactured homes have appreciated almost as fast as site-built homes, according to an Urban Institute analysis of FHFA data. With entry-level supply scarce and $1 million “starter” prices proliferating, factory-built homes may be the new wealth-building alternative.
To read more, Click Here
My comments: Recently there have been negative comments on how the Baby Boomers were able to get affordable first homes. I identify as a Baby Boomer at 82 years old, although I was born in 1943. (Baby boomers were born between 1946 to 1964). Recently, some young people are complaining that many Baby Boomers were able to purchase their homes when prices were low. We were just lucky.
My husband and I bought our first home in 1973 for $30,000 in Chico, CA, a college town. It had two bedrooms and a large rear yard. We sold it in 1986 for $60,000 and used the proceeds to purchase our Bay Area duplex in 1986 for $120,000 at a 15% mortgage rate (a “reasonable” rate at that time, down from much higher rates over 16%). A idential duplex next door just sold for over $1,000,000.
We later purchased a large waterfront home for $165,000 in 1975 and sold it for $1,000,000 in 2008. The market was very slow then and we got seller financing with a first and a second mortgage.
I always tell people to buy when no one else is buying to get the best price.
We were very lucky to buy our two properties when prices were low. Now in my city in the Bay Area a small starter home needing some work is $1,000,000. Other nearby cities are much more expensive.
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HOW TO USE THE NUMBERS BELOW. Appraisals are ordered after the loan application. These numbers tell you the future for the next few weeks. For more information on how they are compiled, Click Here.
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My comments: Rates are going up and down. We are all waiting for rates to drop lower in 2027.
Mortgage applications increased 1.8 percent from one week earlier
WASHINGTON, D.C. (April 15, 2026) — Mortgage applications increased 1.8 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 10, 2026.
The Market Composite Index, a measure of mortgage loan application volume, increased 1.8 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 2 percent compared with the previous week. The Refinance Index increased 5 percent from the previous week and was 15 percent higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 1 percent from one week earlier. The unadjusted Purchase Index was unchanged compared with the previous week and was 3 percent lower than the same week one year ago.
“Given the evolving situation in the Middle East and its impact on energy and commodity prices, mortgage rates declined last week. The 30-year fixed rate decreased to 6.42 percent, its lowest level in a month,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “This dip in rates helped to support an increase in conventional refinance applications, which had declined for five consecutive weeks. Purchase activity remained subdued as potential homebuyers remained hesitant given the current economic uncertainty, which kept purchase applications below last year’s level for the second consecutive week. Conventional purchase applications were essentially unchanged over the week, while FHA and VA purchase applications declined.”
The refinance share of mortgage activity increased to 45.5 percent of total applications from 44.3 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 8.4 percent of total applications.
The FHA share of total applications decreased to 18.2 percent from 19.3 percent the week prior. The VA share of total applications decreased to 15.7 percent from 16.1 percent the week prior. The USDA share of total applications remained unchanged at 0.5 percent from the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) decreased to 6.42 percent from 6.51 percent, with points increasing to 0.62 from 0.61 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $832,750) decreased to 6.48 percent from 6.54 percent, with points increasing to 0.46 from 0.35 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.14 percent from 6.22 percent, with points remained unchanged at 0.73 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.85 percent from 5.90 percent, with points decreasing to 0.73 from 0.74 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs increased to 5.63 percent from 5.60 percent, with points decreasing to 0.46 from 0.68 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The survey covers U.S. closed-end residential mortgage applications originated through retail and consumer direct channels. The survey has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, thrifts, and credit unions. Base period and value for all indexes is March 16, 1990=100.
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Ann O’Rourke, MAI, SRA, MBA
Appraiser and Publisher Appraisal Today
1826 Clement Ave. Suite 203 Alameda, CA 94501
Phone: 510-865-8041
Email: ann@appraisaltoday.com
Online: www.appraisaltoday.com
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