Preparing for UAD 3.6 Hybrid Appraisals

This article summarizes the analysis completed for customers as part of migration projects from Uniform Appraisal Dataset (UAD) 2.6 traditional appraisals to UAD 3.6 hybrid appraisals.

Asteroom Field Services Network

First, a short background on Asteroom. The company started offering 3D virtual tours and photography to real estate agents to market their listings, and quickly grew to over 35,000 users. Post-COVID, Asteroom expanded to provide interior/exterior inspections for REO and Uniform Property Data (UPD) reports for mortgage originations, and recruited a nationwide inspection network from licensed real estate agent users, plus licensed notaries

Asteroom learned a lot about building and managing an inspection network and developed expertise in recruiting, training, onboarding, evaluating, and incentivizing inspectors. This experience is invaluable when analyzing field inspection networks in appraisal, property management and insurance verticals.

Asteroom operates a very large nationwide network, supported by proprietary technology, to deliver complex 3D interior/exterior inspections in 3-4 days.

Assessing a UAD 2.6 traditional appraisal panel

The table shows a subset of results from a ‘direct-to-appraiser’ appraisal panel analysis for nationwide conventional lending. Note that FHA loans, VA loans, and secondary orders like 1004Ds, are excluded.

The analysis applies USDA Rural-Urban Commuting Area (RUCA) by Zip Codes to provide more granularity than State level analysis. Median is used to removes fee, distance and turn time outliers that can inflate data 5-25%.

Key Findings

Some of the key insights from this analysis, completed in Q1 2026 and based on 2025 orders, include:

• The variance in median turn time (business days) for a conventional nationwide ‘direct-to-appraiser’ panel from MSA to rural assignments is approximately 30%.
• The median turn time in MSAs is 4.95 business days
• The highest median turn time is 7.67 business days
• The median turn time in rural areas rises to 6.54 business days
  
  
• The variance in median appraisal fees for a conventional nationwide ‘direct-to-appraiser’ panel from MSA or rural assignment is approximately 20%
• The median fee in MSAs is $450, rising to $600 in rural and small town areas
• Most lenders set standard fees by State so variance is restricted
• The maximum fees across all areas are $2,000 - $2,500
  
  
• The average distance travelled by an appraiser in MSAs is 9 miles, rising to 23 miles in rural areas:
• The maximum distance travelled by an appraiser in MSAs is 79 miles, rising to 133 miles in rural areas
  
  
• In this national subset, the number of unique appraisers completing traditional appraisals is 1,358, which averages 8 orders per unique appraiser:
• The number of unique appraisers completing traditional appraisal in MSAs is 939, an average of 10 orders per 1 unique appraiser
• The number of unique appraisers completing traditional appraisal in rural areas is 241, an average of 2 orders per 1 unique appraiser

Key Observations

While the variance in turn time (business days) and appraiser fees for MSA vs rural assignments is between 20-30%, the number of appraisers needed to complete these assignments is significantly different.

In MSAs lenders can successfully complete assignments on-time with less appraisers - an average of 1 appraiser per 10 appraisal orders. In rural areas this ratio falls to 1 appraiser per 2 orders.

The loss of one appraiser in a rural or small town market can have outsize impact on the distance traveled, and corresponding turn time and fees.

With the continued decline in appraisers completing residential mortgage appraisals, and the expected impact of UAD 3.6 on appraiser supply, this puts loan production at risk.

Preparing for a UAD 3.6 hybrid appraisals

To prepare for UAD 3.6, Asteroom helps lenders analyze their existing direct-to-appraiser panel, and identify coverage areas where they have the most exposure. These are the rural markets, small towns and counties where hybrid appraisals can mitigate future supply issues.

We work with clients to develop roll-out plans that map the Asteroom inspection network to their lending footprint. In cases where lenders have specialty lending programs, or partnerships with home builders, real estate brokerages, and mortgage brokers, the plan may involve expanding network coverage to service anticipated inspection volume.

To support lenders as they engage their trusted appraisers to discuss UAD 3.6 hybrid appraisals, Asteroom provides:

• Anticipated UAD 3.6 hybrid appraisal order volumes
• Recommended UAD 3.6 hybrid appraisal fees
• Current and suggested appraiser service territory
• Inspection network coverage for Uniform Property Data (UPD) reports
• Comparison of traditional appraisal vs. UAD 3.6 hybrid appraisal income

Asteroom is an independent inspection company with no ownership interest from real-estate valuation companies, including appraisal firms and Appraisal Management Companies (AMCs).

Appraisers, appraiser trainees and other licensed real-estate professionals are encouraged to join Asteroom’s inspection network and become certified Property Data Collectors.