According to HousingWire, the FHA has opened an optional transition period that allows lenders to start submitting appraisals in the new UAD 3.6 format through its Electronic Appraisal Delivery portal. This change applies to both Title II forward mortgages and HECM loans, and it's available effective immediately after the agency completed testing of the new format.
During this optional phase, lenders still have the flexibility to use the older UAD 2.6 format if they prefer. However, there's an important constraint: once a lender chooses a format for the initial appraisal on any given case, they must stick with that same format for all future submissions on that case. You can't mix and match formats within the same loan file.
This FHA move comes as the broader mortgage industry is shifting toward UAD 3.6. The government-sponsored enterprises, Fannie Mae and Freddie Mac, have set a mandatory transition date of November 2nd, but they've also offered a limited exception allowing some approved sellers to continue using the legacy format into mid-2027. The FHA hasn't yet announced when it will make the switch mandatory on its end, saying they'll continue monitoring lender readiness first.
The Mortgage Bankers Association supports these transition accommodations, with their leadership noting that the phased approach should give lenders and appraisers adequate time to prepare for the change without creating unnecessary bottlenecks or cost pressures on borrowers.
What I am seeing locally is that many Bay Area lenders are already thinking about how they'll manage this transition across their portfolios. The key takeaway for our market is that you have some breathing room right now to plan your migration strategy, whether you're dealing with FHA loans or conventional products. It's smart to start testing UAD 3.6 in this optional window so you're not scrambling later.
