By John Haring, Head of Compliance at Wilqo
Change is coming to appraisal review, and it’s not just cosmetic. The agencies have announced a sweeping modernization of the Uniform Residential Appraisal Report (URAR), transitioning to a new dynamic format that blends field-based data collection with desktop-based valuation analysis. This isn’t just a shift in paperwork, it’s a shift in process, review, and compliance.
Here’s what you need to know.
The What: A New Dynamic Appraisal Format
Starting in early 2026, Lenders can begin to order appraisals using the redesigned and dynamic appraisal format. Unlike current appraisal forms, the new appraisal format will support all property types and valuation methods, including traditional, desktop, exterior, and modern hybrid appraisal options. A new summary form will bring the most critical information to the very front of the report while additional dynamic sections will replace the need for various addenda.
The When: Timeline to Transition
While a limited pilot is underway for selected participants, most lenders will begin adopting the new format in January 2026. A formal transition to mandatory compliance is expected by November 2026, with a sunset date in May 2027, after which older form-based appraisals will no longer be accepted.
The How: A New Way to Order and Review
This is where the real operational impact begins. No longer will appraisal types be requested by property type-based form numbers (e.g., 1004 or 2055). Instead, users will select from a menu of appraisal “attributes” (e.g., property type, valuation method), creating a dynamic report tailored to the transaction type. Think of it as a dynamic loan application, only for valuations.
Compliance Implications and Operational Readiness in Charlie
While the data being reviewed remains largely the same (photos, comps, values), its presentation is different. Underwriters won’t necessarily need to relearn what they’re reviewing, but they will need to refamiliarize themselves with where and how to find it in the new format.
That said, lenders using platforms like Charlie can breathe a little easier. Thanks to dynamic UX and data-driven architecture, Charlie is already preparing to bridge the old and the new seamlessly. By mapping both legacy and modern appraisal formats into familiar workflows and checklists, the learning curve for underwriters is significantly flattened.
Takeaway: Start Your Planning
This isn't just a tech upgrade, it's a shift in process. But with a clear timeline and adaptable systems in place, now is the time to start conversations, not overhaul operations overnight. Whether you’re on the pilot path or preparing for 2026, make sure your compliance, underwriting, and training teams are aligned on what’s coming and when.
If you’re using Charlie, the message is clear: the change may be big, but for you, it’s a non-issue 😊.
