Navigating the Future of Appraisals

July 2, 2025

Navigating the Future of Appraisals

Executive Summary

The residential appraisal industry is at a pivotal moment, driven by regulatory modernization, rapid technological advancements, and increasing market demands for speed, accuracy and transparency. At the forefront of these changes is the Uniform Appraisal Dataset (UAD) and Uniform Residential Appraisal Report (URAR) redesign: an initiative led by Fannie Mae and Freddie Mac that will reshape how appraisals are structured, validated and delivered. For appraisers and Appraisal Management Companies (AMCs), adapting to these changes is not just necessary – it’s essential.

Historically, the URAR—rigid and form-based—required multiple templates for different property types, limiting data integration and slowing workflows. The new modular, dynamic report structure will support a wide range of property types and lending scenarios—all within a single, intelligent framework. The first phase of this rollout begins September 8, 2025, signaling a new era in appraisal reporting.

However, the UAD redesign is just one piece of a broader transformation. Appraisers face mounting challenges, including an aging workforce, tighter turnaround times, and heightened scrutiny on appraisal quality and potential bias. Lenders and AMCs are demanding greater accuracy, consistency, and transparency to mitigate risks like mortgage putbacks.

ACI, a leader in real estate valuation technology, is at the forefront of this transition. With a fully integrated ecosystem of tools—ranging from intelligent form-fill software to advanced analytics and automated quality control—ACI empowers appraisers to not only meet new standards but exceed them. Solutions like ACI Sky™ Workbench are purpose-built for UAD 3.6 and next-generation reporting, enabling appraisers to work smarter, faster and more accurately in a high-stakes environment.

This white paper explores how ACI equips appraisers and AMCs to navigate evolving expectations, improve productivity, and deliver compliant, high-quality reports—ensuring long-term success in an increasingly data-driven and regulated appraisal landscape.

Evolving Standards: UAD Redesign and Modernization

Introduced in 2011, the UAD brought much-needed standardization to residential appraisal reports, enabling automated systems to analyze data at scale. Now, over a decade later, the

UAD and Forms Redesign initiative represents the most significant overhaul to appraisal reporting yet.

The redesigned URAR eliminates the static, one-size-fits-all approach, replacing it with a modular, dynamic structure that accommodates diverse property types and transaction scenarios. Key enhancements include:

Expanded Data Granularity: More precise property and market data.
Redefined Indicators: Updated condition and quality metrics.
Improved Contextualization: Greater ability to reflect property attributes and market conditions.

This modernization creates a more accurate, analyzable, and interoperable dataset, meeting the needs of modern underwriting systems, regulatory bodies, and investors. For appraisers, this shift demands updated workflows and enhanced quality control but also unlocks opportunities for greater efficiency and transparency.

Modern Challenges Facing Appraisers and AMCs

Appraisers and AMCs are under pressure to deliver faster, more accurate reports while navigating tighter margins and heightened regulatory oversight. Key challenges include:

Compressed Turnaround Times: Faster delivery expectations despite data complexity.
Aging Workforce: A shrinking talent pipeline makes productivity gains critical.
Heightened Scrutiny: Lenders demand greater transparency and consistency to meet compliance and investor expectations.

Appraisers need tools that improve productivity, automate research, reduce the need for working in different platforms and systems, and catch defects earlier in the origination process. The goal: streamline the front-end and review process for every valuation, ensuring that every report is audit-ready—without sacrificing quality or independence.

The redesigned URAR introduces structured data input and stricter data integrity requirements. While this adds complexity, it also open the door to faster report creation, reduced revision rates, and improved transparency. ACI is fully aligned with this transition. Tools like ACI Report, Sky Delivery, and the newly released ACI Sky Workbench are engineered to support these changes, enabling appraisers to adopt UAD 3.6 standards without compromising efficiency. From pre-fill automation to intelligent compliance checks, ACI ensures appraisers are ready—not just to comply, but to thrive.

A Legacy of Innovation and Industry Leadership

Founded in 1979, ACI has been a cornerstone of the valuation technology landscape for more than four decades. From its early days as a desktop solution for form-filling and compliance, ACI

has grown into one of the most widely adopted platforms in the appraisal industry. Today, ACI’s software solutions are used by thousands of individual appraisers, as well as hundreds of Appraisal Management Companies (AMCs) and lenders across the country.

Its flagship platform, ACI Sky, has reviewed more than 6 million appraisals nationwide, earning a reputation for reliability, compliance readiness, and user-centric innovation. Its deep market penetration and legacy of innovation uniquely position ACI to guide professionals through the UAD 3.6 transition and beyond to meet the future of valuation with confidence.

ACI’s Integrated Solution Ecosystem

The ACI Sky™ Suite is a comprehensive set of cloud-native tools purpose-built for today’s appraisal environment. These solutions support secure collaboration, real-time quality control, and dynamic report management.

- - ACI Sky™ Delivery: Automates appraisal delivery with real-time rules validation, error-checking, and computer vision and data matching AI, ensuring reports meet compliance standards before submission.
  - ACI Sky™ Review: Streamlines the review process with automated checklists, issue flagging, public record search, revision tracking, and advanced image recognition—empowering reviewers to approve files quickly and confidently.
  - ACI Sky™ Report: A scalable, cloud-based BPO forms solution that integrates with leading data providers and supports customizable form development, real-time quality assurance and seamless white-label deployment for AMCs and technology platforms.
  - ACI Sky™ Workbench: Purpose-built for the future of appraisal and the upcoming UAD changes, Workbench delivers advanced cloud-based authoring, editing and reviewing capabilities that align with UAD 3.6. With intuitive drag-and-drop editing, field-level validation and contextual guidance, Workbench gives appraisers everything they need to produce high-quality reports efficiently and confidently in the new URAR format. Key features of Workbench include:
    - - Dynamic Workflow: Workbench allows appraisers to start tasks at any point in the appraisal lifecycle, tailoring processes to their needs. This flexibility enhances productivity by focusing efforts on the most critical tasks, streamlining the appraisal process.
      - Seamless Integration: The platform integrates effortlessly with essential third-party tools and data sources, such as MLS systems and public records databases, which streamlines access to comprehensive and up-to-date information, accelerating the appraisal process and reducing manual data entry.
      - Advanced Data Analytics: Workbench provides powerful analytics capabilities that allow appraisers to conduct in-depth data analysis and generate more informed and precise appraisal reports that enhance compliance with both regulatory and client standards.
      - Compliance-Ready Tools: Built to align with the latest GSE-mandated UAD standards, Workbench includes automated compliance checks within the appraisal process, helping appraisers maintain high-quality outcomes while adhering to industry regulations.

Conclusion

The appraisal industry is undergoing a generational shift—one defined by data-driven decisions, digital-first processes and heightened compliance expectations. As the UAD 3.6 and URAR modernization initiatives reshape the landscape, professionals across the valuation lifecycle must embrace innovation to stay competitive.

ACI is not only prepared for this future—it is actively building it. With decades of experience, a full suite of integrated solutions, and a deep understanding of regulatory requirements and appraiser workflows, ACI provides the tools necessary to lead with confidence.

Whether you’re an individual appraiser navigating new data standards or an AMC managing thousands of reports, ACI offers the speed, intelligence and reliability required to thrive in a rapidly evolving landscape. The future of appraisal is here—and ACI is your trusted partner every step of the way.