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The Signal Issue 001

The Signal, October 4, 2026, Issue 001

UAD 3.6 exceptions, HouseCanary's bankruptcy, and 31 events to consider.

The SignalFrom ValuSignal8 min read

Welcome to The Signal. September closed with a new UAD 3.6 exception process and HouseCanary’s bankruptcy filing, and both lead our first issue. The transition now requires closer coordination between appraisers and lenders, while the property-data company seeks time to pursue litigation proceeds. Thank you for joining our first all-virtual ValuSignal conference. This monthly briefing continues that conversation with news, practical resources, and dates for appraisers and collateral-risk professionals.

This issue: UAD transition details, HouseCanary’s filing, appraisal technology, and upcoming events.

Top Signals

1. UAD 3.6 gets an exception window. Fannie Mae and Freddie Mac’s September 30 announcement gives lenders a way to request additional transition time. November 2, 2026 remains the mandate date.

Lenders that need more time must request a policy exception separately from Fannie Mae and Freddie Mac, as applicable. Approved lenders can continue submitting legacy UAD 2.6 reports through May 19, 2027, while adopting UAD 3.6.

“Confirm a lender’s UAD requirements before accepting or completing an assignment.”
Fannie Mae, September 30 appraiser communication

The transition dates. From November 2, 2026 through February 28, 2027, approved exceptions allow UAD 2.6 submissions to the Uniform Collateral Data Portal, or UCDP. From March 1 through May 19, 2027, those submissions enter a reduced-functionality period.

During that second period, legacy reports return 999 in Fannie Mae’s Collateral Underwriter and 99 in Freddie Mac’s Loan Collateral Advisor. Loans secured by those reports won’t qualify for collateral representation-and-warranty relief for value, a protection affecting the lender’s responsibility for valuation assurances.

Your next assignment. Confirm the lender’s requested format and prepare to support both UAD versions during the exception period. Review Fannie Mae’s lender letter and the GSE exception-request coverage before updating engagement instructions or submission workflows.

2. HouseCanary seeks Chapter 11 protection. The property-data company’s bankruptcy filing puts its long-running valuation-model litigation at the center of its financial future. National Mortgage News reported September 24 that HouseCanary filed to buy time to collect proceeds from Rocket Mortgage affiliates accused of misappropriating its trade secrets.

For firms using HouseCanary data or valuation tools, the practical questions concern their contracts and service arrangements. Ask your account team about access, support, and data-export provisions as the bankruptcy proceeds.

3. AQB opens another draft. The Appraiser Qualifications Board says its Third Exposure Draft incorporates feedback on proposed changes to appraiser qualifications. Its October 8 session at 1 p.m. ET takes verbal comments, and written comments close October 25. Read the draft’s specific revisions before weighing in on how the criteria should change.

4. FHA reviews property standards. FHA says its proposed Minimum Property Requirements aim to simplify language and clarify which properties qualify for financing. The September 22 proposal covers Handbook 4000.1, with feedback through November 6. Existing requirements remain in effect while FHA reviews comments, giving appraisers a window to raise specific inspection and reporting concerns.

5. NAN’s paperwork gets the SVI name. NAN says Stewart Valuation Intelligence, LLC began providing its appraisal management services on September 23. Applicable appraisal management company licenses and report documents carry SVI’s name, with the same NAN team supporting clients. The operational transition follows NAN joining SVI earlier this year.

6. ACI sets an October cutoff. ACI says access to its current ACI Sky Workbench ends October 9. The company is targeting spring 2027 for Workbench 2.0. Current customers should use the transition instructions ACI sent directly to them.

This Month in AI

Tools and workflows to explore

A robot at a desktop computer watches a ribbon of data become paper birds, sculpted in cream, sage and deep-teal paper.
Robot at a computer · AI-generated editorial illustration.

QC flags the file. ACES says its Population Testing produces risk indicators that teams investigate and prioritize. Each flag traces to a specific rule and data, according to the company; human reviewers determine the findings and outcome.

Rental models expand. Clear Capital says its enhanced rental AVM gives lenders another way to analyze rental income. The automated valuation model is marketed as an alternative to traditional appraisal rent schedules; its use still depends on the applicable lending program.

Rental files get an earlier review. National Mortgage Professional reports that Friday Harbor expanded its pre-underwriting platform to investor loans. It reviews leases, appraisal rent schedules, and borrower documents against program guidelines. That includes debt-service coverage ratio loans, which assess rental income against debt payments.

Technology meets standards. Working RE’s AO-41 article examines appraisal tools ranging from multiple listing services and adjustment software to AI.

UAD 3.6 · Practice Desk

Fannie adds reading material. Fannie Mae’s Q3 2026 appraiser newsletter covers appraisal policy, transition resources, and considerations for generative AI. Its September 30 communication points appraisers to that collection alongside the new exception guidance.

Fannie clarifies residential use. Appraisal Today reports that Fannie Mae’s September 2 highest-and-best-use policy applies specifically to UAD 3.6 assignments. The policy distinguishes residential use from present use and addresses properties whose current use fails one or more highest-and-best-use tests.

Highest and best use gets examples. Appraisal Today describes Fannie Mae’s 25-page playbook and a separate 27-question FAQ covering present use, subordinate uses, and loan eligibility. Use the scenarios to work through a property’s circumstances alongside the policy.

Class starts pricing conversations. Class Valuation says it’s contacting clients about UAD 3.6 readiness and expects added complexity to affect appraiser fees. Its Resource Hub offers webinars and sample reports for teams preparing for the transition.

Assign the transition work. Connexions says its UAD 3.6 Readiness Hub offers free guides organized by IT, Operations, Underwriting, and Compliance. The departmental structure gives lenders and appraisal management companies a way to assign responsibility for technology, policy, and training milestones.

Policy & Around the Profession

Farm lending changed October 1. The Appraisal Institute reports a Farm Service Agency final rule expanding evaluations for qualifying transactions of $500K or less. It also allows conditional use of direct-loan appraisals up to 36 months old, making program eligibility central to how those options apply.

The $650K threshold debate. An Appraisal Institute-led coalition opposes raising the residential appraisal threshold from $400K to $650K without support addressing collateral risk. The coalition also raises concerns about evaluations outside traditional appraisal regulation and limited comparable-sales data in rural markets.

Nevada opens the comment window. The Nevada Real Estate Division accepts comments on potential changes to NAC 645, 645C, 645D, and 645H through October 31. Its October 6 stakeholder meeting comes first; written comments can follow through the stakeholder form or PublicComments@red.nv.gov.

AVS renames its forum. The American Valuation Society says its Executive Forum is now the Collateral Valuation Forum. The invitation-based group continues to bring senior participants together around valuation policy, workflow, risk, and the UAD 3.6 transition.

Arkansas recruits members. The Arkansas Coalition of Appraisers says it’s recruiting members and developing its website. Its introduction gives Arkansas practitioners a place to explore participation and help build the coalition’s shared voice.

AARO lists membership options. The Association of Appraiser Regulatory Officials lists $100 annual associate dues and $750 affiliate dues on its membership page. Applications require board approval, and jurisdictional memberships have separate categories.

A resource for business valuers. The Appraisal Foundation’s Business Valuation Resource Panel develops advisories and briefs for the profession. The Foundation describes a recurring June application cycle, with new appointees notified in the fourth quarter.

One case to follow

An owl in spectacles and judicial robes reviews papers beside balanced scales, in layered cream, sage and deep-teal paper.
Weighing the details · AI-generated editorial illustration.

Gold Star faces a class action. National Mortgage News reports a lawsuit following an alleged ransomware attack involving Gold Star Mortgage. Cybercriminals claim they compromised more than 10,000 documents, and the lender hasn’t confirmed whether a breach occurred.

Market in Brief

Applications fell 1.5%. MBA’s September 23 release reports that seasonally adjusted decline for the week ending September 18. Unadjusted volume rose 9%, and the prior week included a Labor Day adjustment, so the comparison basis matters.

Barr signals another hike. National Mortgage News reported on September 23 that Federal Reserve Governor Michael Barr appeared to expect another rate increase before year-end.

Naomi Rohatyn’s September 20, 2026 post reacts to a NewsWire headline claiming an AI air traffic system deployment at DC-area airports.
Naomi Rohatyn, September 20. Commentary on a NewsWire headline.

AI whiplash. Naomi Rohatyn pairs warnings about AI with a NewsWire headline claiming the FAA will deploy an AI air traffic system. Her September 20 post raises a question for appraisal teams: which automated tasks still need a human check?

Kansas hosts the discussion. The Appraisal Foundation says its State Harmonization Task Force visited Kansas to encourage removing qualification requirements above AQB criteria. The post describes a push for alignment, with state regulators participating in the discussion.

Gohn’s first impression. Justin C Gohn calls Opus 5.5 his best model experience after 2 hours of use. His post pairs that opinion with a coding-performance chart, giving appraisers a prompt to consider which tasks their own tests should measure.

UAD gets a podcast series. Market Moves With Mark and Jeff launched UAD AF, a 10-part weekly series on the UAD 3.6 transition, on August 22. Their October 2 episode covers the GSE exception bulletin in this issue’s lead story.

Dates to Act On

On the Calendar

Browse 17 events from October through December. Organizer links carry registration and program details.

October 2026

November 2026

December 2026

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