UAD 3.6 Deadline Looms: Hybrid Appraisals Hit 90% Eligibility

Hybrid appraisal eligibility has reached the high-90% range for some mortgage programs, according to a report from Housingwire, significantly expanding the potential use cases for these alternatives to traditional appraisals. The development comes ahead of the November 2 implementation of the Uniform Appraisal Dataset (UAD) 3.6, a major update to the standard data format used in the mortgage industry.

UAD 3.6 is designed to modernize the appraisal process by standardizing data collection and improving efficiency. The high eligibility rates suggest that hybrid appraisals, which combine desktop analysis with a physical inspection by a third party, are becoming more viable for a broader range of loans. This shift could help address appraisal bottlenecks and reduce costs, though questions remain about valuation accuracy and consumer protection.

As the November 2 deadline approaches, lenders, appraisal management companies, and technology providers are preparing for the transition. Industry stakeholders are watching closely to see how the new dataset impacts hybrid adoption and whether it leads to further regulatory adjustments. The expansion of hybrid eligibility could signal a lasting change in how properties are valued in the mortgage market.