What Is the New URAR?
The Uniform Residential Appraisal Report (URAR) is the standardized form used by appraisers when evaluating properties for mortgage lending purposes. The current version of the URAR has been in place since 2005—but it’s about to be replaced with a completely redesigned version that’s more detailed, data-driven, and digitally adaptable.
This new form is part of a broader modernization effort from Fannie Mae and Freddie Mac, intended to streamline appraisals, support risk management, and increase clarity for borrowers and lenders alike.
Why Is the URAR Being Updated?
There are several key reasons why Fannie Mae and Freddie Mac—under the guidance of the Federal Housing Finance Agency (FHFA)—decided to overhaul the appraisal report form:
- Modernization of data: The old form was limited in how it captured data. The new URAR leverages structured data inputs to increase clarity and enable better analytics across the industry.
- Improved flexibility: Previously, separate forms were required for different property types (single-family, condos, manufactured homes, etc.). The new form consolidates all of these into a single dynamic report.
- Support for new appraisal methods: As desktop and hybrid appraisals become more common, a new format was needed to support them effectively.
- Enhanced consumer transparency: The new report is more readable for consumers, offering clearer sections that explain value conclusions and key observations.
What’s Changing in the New Appraisal Form?
You can view a sample of the redesigned appraisal form on Fannie Mae’s UAD and Forms Redesign page. Freddie Mac offers additional resources on the UAD redesign here.
1. Dynamic, Data-Driven Structure
Unlike the old form that was static and rigid, the new URAR is modular. That means sections expand or contract depending on the type of property and scope of work. For example, a condo appraisal includes relevant sections that won’t appear on a single-family appraisal.
Each section is more logically grouped: property characteristics, comparable sales, condition adjustments, and value conclusions are better organized and presented with digital readability in mind.
2. Unified Format for All Property Types
Appraisers previously used different forms depending on whether the subject was a condo (1073), a single-family home (1004), or a manufactured home (1004C). Now, it’s all built into one smart form. That reduces confusion and supports cleaner data flow through the lending pipeline.
3. Expanded Property Condition Reporting
The new form puts more emphasis on the property’s condition and quality, breaking these into more nuanced ratings and requiring additional commentary where applicable. For buyers, this means the appraisal will give a clearer sense of the home’s physical state.
4. Digital-Friendly Format and XML Support
The new URAR is designed with data ingestion in mind. That means easier integration with loan origination systems and GSE portals, less human error in data re-entry, and more opportunities for automation. It’s all part of a broader effort to digitize the mortgage process—from appraisal to close.
5. More Insightful Exhibits and Maps
Rather than burying critical visuals in the middle or end of the form, the new URAR reorganizes exhibits like maps, building sketches, and photos into a more intuitive layout. The result is a document that both underwriters and borrowers can read with less friction.
How Will This Affect the Home Buying Process?
For Homebuyers
The changes are largely beneficial. The appraisal report will be easier to understand, and the details about the home’s condition will be clearer. That transparency can help you feel more confident in your purchase—or negotiate if the appraisal reveals concerns.
Buyers won’t need to do anything differently, but should expect their appraisal report to look more polished and professional.
For Sellers
The updated appraisal gives a more precise picture of your home’s condition and how it compares to others in your area. That can help avoid surprises and build trust during negotiations—particularly in a shifting market.
For Agents
Real estate agents will want to get familiar with the new layout so they can help clients interpret it correctly. The expanded condition commentary and standardized comparables structure will also make it easier to identify what contributed most to a home’s appraised value.
For Lenders and Appraisers
The biggest impact falls on lenders and appraisers, who must adjust to new workflows and systems. But over time, the digitized and modular structure should reduce rework, inconsistencies, and back-and-forth between underwriters and appraisers.
CapCenter’s fully integrated mortgage team—including in-house processing and underwriting—means we’re able to adapt quickly to these updates. We maintain close relationships with our appraisal partners to ensure smooth, timely closings—just one way our clients benefit from a streamlined mortgage experience.
When Will the New Appraisal Form Be Required?
Fannie Mae and Freddie Mac are currently conducting phased rollouts and testing. As of 2025, pilot implementations are underway with select lenders and technology providers. Full mandatory implementation is currently expected in 2026, but that timeline may shift slightly.
At CapCenter, we’re staying ahead of these changes so our clients experience a seamless transition. Whether you’re buying, refinancing, or investing, we make sure nothing slows you down at the finish line.
What Should You Do Now?
As a homebuyer or seller, the new URAR form won’t change what you do—it simply improves how your property’s value is reported. But working with a lender that understands the new landscape is crucial.
CapCenter’s experienced team monitors industry updates like this and guides you through every step. That includes making sure your appraisal is accurate, fair, and submitted without delay.
Final Thoughts
The new Uniform Residential Appraisal Report is a big step forward for the mortgage industry. By enhancing clarity, flexibility, and transparency, it supports better decision-making for all parties involved. And as the industry evolves, CapCenter continues to lead the way in helping clients navigate the home buying and refinancing process with ease—and with Zero Closing Costs.
.svg)
%201.svg)
