GSEs issue policy waiver for lenders unprepared for UAD 3.6.

Industry guidance has clarified that lenders obtaining a one‑time waiver may continue using UAD 2.6 for a limited transitional period beyond its scheduled retirement. The move provides immediate operational relief for originators and appraisal processors that lack fully deployed system or vendor integrations, reducing near‑term disruption to loan delivery. The waiver is temporary and conditional — lenders should expect documentation requirements, interaction with investor acceptance policies, and oversight from regulatory and secondary market stakeholders. The announcement highlights the technical and governance complexity inherent in updating appraisal data standards and shifts focus to maintaining data integrity and consistent reporting while a longer‑term migration is completed.

Practically, lenders should treat the waiver as a bridge, not a halt to migration. Immediate priorities include assessing vendor and in‑house system readiness, documenting the rationale for the waiver application, and implementing compensating controls to protect appraisal quality and workflow consistency. Operational teams must update policies, train staff on parallel processes, and coordinate closely with investors about submission acceptability. Technology groups should map data differences and plan phased updates to avoid rework. Senior management should set clear migration milestones, allocate budget for upgrades, and communicate expectations to counterparties to minimize market friction.

– One‑time waiver — Temporary permission to continue using UAD 2.6 beyond its planned retirement, easing immediate transition pressure.
– Eligibility & conditions — Typically requires documented justification and coordination with investors and oversight bodies.
– Operational impact — Provides short‑term continuity but requires compensating controls and careful vendor coordination.
– Compliance & risk — Enhanced audit trails and validation procedures needed to satisfy examiners and secondary market counterparties.
– Migration planning — Use the waiver as a bridge: set milestones, budget upgrades, and phase technical changes to avoid rework.
– Market communication — Proactively inform investors and counterparties about waiver status and submission acceptability to prevent downstream issues.

You can read this full article at: https://www.housingwire.com/articles/gses-temporary-uad-3-6-exception-sellers-2027-timeline/(subscription required)

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