Valuation Hot Topics: Four Things Valuation Professionals Need to Know Now (Sponsored by ServiceLink)

Liz Green, senior vice president of valuation solutions at ServiceLink, is an industry veteran, longtime strategist and speaker. Green is a passionate activist for data standards and is helping foster a new level of understanding in property valuation and collateral risk assessment through the application of digital intelligence. She serves as the chair of MISMO’s Property and Valuation Services Community of Practice and Collateral Risk Network’s Standards Committee, where she also was named the 2025 CRN Valuation Visionary for her industry contributions.  

With the steady beat of regulations, rules and new requirements in the valuation space it can be tough for valuation professionals to keep their finger on the pulse of what’s happening within the industry. Appraisers today must also balance volume challenges, learn new technologies and train the next generation simultaneously.

As major valuation milestones are knocking at the door, now’s the time to take an industry-wide inventory and circle some key dates on the calendar. The following is a quick list of some can’t-miss deadlines and opportunities for appraisers, lenders and others in the mortgage lending industry to be mindful of.

January 26, 2026: Broad Production Period for UAD 3.6

Perhaps nothing should be circled on the calendar more than this date as the valuation industry embarks on the broad implementation of the most data-intensive valuation process ever undertaken. The redesigned Uniform Residential Appraisal Report (URAR) and new Uniform Appraisal Dataset (UAD) 3.6, as defined by GSEs Fannie Mae and Freddie Mac, is on pace to be the biggest change to residential real estate appraisal reporting since Dodd-Frank.

It’s a shift from a static boilerplate reporting form, a concept that is nearly 30 years old, to a modern and dynamic view. The new view leverages an expanded set of data points – upwards of potentially 1,500 data points – to move the industry forward. Those doing business with the GSEs will see the new URAR provides a lot more specific data, which is driven by the standardized definitions in the new appraisal report.

Lenders that were approved to participate in the Limited Production Period (which began September 8) are now accepting the new URAR/UAD 3.6 format on a small number of transactions. However, the rest of the industry must get ready, and it requires preparation. The official mandate to use the new URAR/UAD 3.6 begins November 2, 2026.

So, what does this mean for lenders who aren’t sure where to start or don’t anticipate being fully prepared? Now is the time to consider working with an AMC, like ServiceLink, that is leading the charge in preparing for these widespread reporting changes. Implementing training, procedural changes and policy updates are necessary to be able to hit the ground running ahead of these key milestones. There are plenty of resources out there, but partnering with an AMC that demonstrates a commitment to supporting appraisers and guiding them through the learning curve will ultimately lead to a more seamless transition.

October 1, 2025: Quality Control Standards for Automated Valuation Model Final Rule Goes into Effect

Perhaps this date on the calendar isn’t as widely known, but it is equally important for those in mortgage origination and valuation. The Quality Control Standards for Automated Valuation Model Final Rule requires that lenders using AVMs in credit decisions must have a document process that outlines how they are tested and monitored for compliance with fair lending laws. 

The Consumer Financial Protection Bureau says these QC standards are “designed to ensure a high level of confidence in the estimates produced by AVMs; protect against the manipulation of data; seek to avoid conflicts of interest; require random sample testing and reviews; and comply with applicable nondiscrimination laws.”

Automated valuation got its start in the offices of county property appraisers back in the 1970s. Computer-assisted mass appraisal (CAMA) was developed to solve the challenge of providing timely and accurate valuations on a large scale, which we now refer to as automated valuation models (AVMs). The benefit of this technology is faster processing speeds and the ability to consume mass quantities of data.

It’s important to note that an individual appraiser’s use of AVM technology in their assignments does not fall under this rule. The agencies felt that an appraiser mitigates the risk posed by potentially inaccurate AVM results. However, mortgage lenders will need to come into compliance with this new rule shortly as the October deadline is looming. Meanwhile, appraiser-facing interactive AVMs is a trend we expect to see more of in the near future.

Happening Now: New Data and a New Report Available

The aggregation of data is at the heart of the valuation industry and now the collection of this information is being publicized and leveraged in a new way.

The FHFA has released the Uniform Appraisal Dataset (UAD) Appraisal-Level Public Use File (PUF), which serves as the nation’s first publicly available appraisal-level dataset of individual appraisal records. Essentially, it gives the public access to a set of data fields found in appraisal reports. 

This five percent nationally representative random sample comes from appraisals associated with mortgages acquired by the GSEs and those insured by the FHA. The PUF includes state, county and census tract information, allowing for geographic analysis. This information, in the hands of the public or policymakers, can be used for identifying trends, conducting research and promoting compliance throughout the industry.

Another recent announcement in the valuation space is the publication of the Uniform Property Data Report (UPDR). Earlier this summer, the GSEs rolled out the UPDR – a dynamic and standardized report template, designed to present the data from the current property dataset. While use of the UPDR is voluntary until June 30, 2026, the GSEs have encouraged lenders to reach out to their vendors and begin implementing it now. After June 30, 2026, however, the UPDR will be a mandatory component of the property data collection process.  

Preparation is key

As we look ahead, preparation is key for impending changes in the valuation space. Lenders and appraisers must do their research, mark their calendars with the above milestones and lean on trusted valuation experts to help guide them through these monumental changes. While all this change can seem daunting, there are ample benefits to the industry and its constituents. The renewed focus on data collection and standardization will ultimately lead to clearer communication, unified verbiage and purer data. Valuation professionals who embrace these changes early on will be the ones who will win in today’s competitive landscape.

(Sponsored content includes material submitted independently of the Mortgage Bankers Association and MBA NewsLink and does not connote an MBA endorsement of a specific company, product or service. For more information about sponsored content opportunities, contact Bill Farmakis at bill@jlfarmakis.com or 203/834-8832.)