This article explains what the 3.6 appraisal report is, why it’s being launched, who is behind it, when it’s rolling out, and what it means for both Texas lenders and borrowers.
For decades, residential appraisals relied on standardized forms—most notably the traditional Uniform Residential Appraisal Report—that were originally designed for a paper-based lending system. While technology advanced, appraisal reporting formats largely stayed the same.
Today’s mortgage environment demands:
Greater data consistency
Clearer support for adjustments and conclusions
Faster appraisal review cycles
Stronger risk management and compliance
In Texas, where markets range from dense urban neighborhoods to rural acreage and Hill Country properties, inconsistent appraisal data has often led to delays, underwriting questions, and review issues. The 3.6 appraisal report is intended to address these challenges by modernizing how appraisal information is structured and delivered.
The 3.6 appraisal report is part of the Uniform Appraisal Dataset (UAD) modernization initiative, led by the government-sponsored enterprises that purchase the majority of conventional residential mortgages:
Fannie Mae
Freddie Mac
These organizations are working with lenders, appraisal software providers, and industry groups to create a more consistent and data-driven appraisal framework—without removing the appraiser’s professional judgment.
Despite the name, the 3.6 appraisal report is not simply a new form. It represents a new set of standardized data specifications that govern how appraisal information is reported and reviewed.
Key characteristics include:
Structured data fields for property characteristics and adjustments
Clear alignment between narrative explanations and numerical data
Improved consistency across appraisals and markets
Enhanced compatibility with automated underwriting and review systems
Narrative commentary remains essential, but it must clearly support and explain the data being reported.
Understanding when changes are happening is just as important as understanding what is changing.
UAD modernization planning and development
Collaboration with lenders, appraisers, and software providers
Early testing of structured appraisal data formats
Appraisal software updates to support 3.6 specifications
Lender system integration and testing
Training and guidance for appraisers and reviewers
3.6 standards become the dominant appraisal reporting framework
Reduced use of legacy forms
Fully integrated appraisal data workflows across lending platforms
This phased approach is designed to minimize disruption while improving long-term clarity and consistency.
For Texas lenders, the 3.6 appraisal report offers several practical benefits:
Standardized data helps identify inconsistencies earlier in the underwriting process.
Cleaner appraisal submissions reduce conditions and revision requests.
Clear documentation and standardized logic support regulatory and secondary-market requirements.
In competitive Texas lending markets, efficiency and reliability are critical advantages.
For Texas borrowers, the new reporting framework brings important benefits:
Appraisers must clearly explain how value conclusions and adjustments are derived.
Improved consistency reduces last-minute underwriting issues.
Texas real estate markets vary widely—and professional judgment remains central to the appraisal process.
The appraisal is still a human analysis grounded in local market data, not an automated valuation.
It’s important to understand what the 3.6 appraisal report does not do:
It does not eliminate licensed appraisers
It does not replace property inspections
It does not automate value conclusions
It does not remove market-based judgment
The appraisal remains an independent, professional opinion of value.
At Sifford Appraisal, we actively adapt to evolving appraisal standards while maintaining a strong focus on local Texas markets. Our reports emphasize:
Clear, defensible adjustment logic
Strong market support
Transparent explanations for lenders and borrowers
Full compliance with modern reporting requirements
Whether the property is located in Fredericksburg, Gillespie County, the Texas Hill Country, or surrounding Central Texas markets, our commitment remains the same: credible valuations you can trust.
The 3.6 appraisal report represents a modernization of how appraisal information is delivered—not the role of the appraiser. For Texas lenders, it means improved efficiency and risk clarity. For Texas homeowners, it means greater transparency and fewer surprises.
If you have questions about appraisal reporting changes or need a Texas residential appraisal, contact Sifford Appraisal today.