{"id":12870,"date":"2025-11-25T14:12:25","date_gmt":"2025-11-25T19:12:25","guid":{"rendered":"https:\/\/www.classvaluation.com\/?p=12870"},"modified":"2025-12-01T09:34:51","modified_gmt":"2025-12-01T14:34:51","slug":"valuation-insights-year-in-review-and-what-to-expect-in-2026","status":"publish","type":"post","link":"https:\/\/www.classvaluation.com\/blog\/valuation-insights-year-in-review-and-what-to-expect-in-2026\/","title":{"rendered":"Valuation Insights: Year in Review and What To Expect in 2026"},"content":{"rendered":"

2025 was a transformative year that strengthened the future of the valuation industry. The rollout of the Uniform Appraisal Dataset (UAD) 3.6 became a headline event, signaling that legacy appraisal forms are being replaced by dynamic data alternatives in a bid to <\/span>modernize the entire workflow<\/span><\/a>.<\/span>\u00a0<\/span><\/a>\u00a0<\/span><\/p>\n

Interest-rate relief finally arrived<\/span><\/a> in pockets of the market, giving borrowers renewed purchasing power and lenders room to compete. At the same time, we saw successful segments emerge, particularly in private-lending channels and short-term rentals, thanks to higher margins and niche strategies.\u00a0<\/span>\u00a0<\/span><\/p>\n

A year of meaningful gains<\/span>\u00a0<\/span><\/h2>\n

Class Valuation made big waves in 2025. We launched our <\/span>CVUE program<\/span><\/a>, which lenders such as Pennymac have already adopted and are seeing measurable gains, and grew our elite panel of <\/span>top-performing appraisers <\/span><\/a>nationwide.\u00a0<\/span>\u00a0<\/span><\/p>\n

Through our <\/span>Class INtelligence<\/span><\/a> initiative, we improved revision-rate metrics and integrated advanced AI capabilities to strengthen quality and efficiency. Class INtelligence also delivered meaningful performance outcomes. Early data shows pre-delivery revisions down 34 percent, post-delivery revisions down 39 percent and average QC cycle times reduced by seven hours. These improvements demonstrate how AI-assisted analytics and structured data are already transforming valuation workflows.<\/span>\u00a0<\/span><\/p>\n

Celebrating industry awards and leadership achievements<\/span>\u00a0<\/span><\/p>\n

This year, several Class team members received industry recognition, including our Chief Operations Officer, Andrew Bough, who was named <\/span>a 2025 HousingWire Vanguard<\/span><\/a>, a prestigious recognition honoring C-level executives whose leadership is advancing the housing and mortgage finance industry, and Kaushal Shah, our Chief Technology Officer, was one of only two people to receive a <\/span>2025 NewsLink Tech All-Star<\/span><\/a> award from the Mortgage Bankers Association.\u00a0<\/span>\u00a0<\/span><\/p>\n

See <\/span>our newsroom<\/span><\/a> for more.<\/span>\u00a0<\/span><\/p>\n

What\u2019s ahead for valuations in 2026<\/span>\u00a0<\/span><\/h2>\n

In 2026, we anticipate continued momentum as modernization accelerates, technology advances and quality expectations rise. In short, now is the time for lenders to prepare for what lies ahead. Here are the trends we\u2019re seeing for valuations in 2026.<\/span><\/p>\n

1. Appraisal modernization is gaining momentum<\/span><\/h3>\n

Hybrid and digital appraisals have evolved from experimental concepts to everyday solutions as lenders seek faster turnaround times and more flexible inspection options. These products, including Class Valuation\u2019s <\/span>Hybrid Appraisal<\/span><\/a> and <\/span>Digital Appraisal<\/span><\/a>, are finally gaining traction across both retail and private-lending channels. We saw record order volume and lender partisipation in the third quarter. We also started to see significant turn time differences of up to four days between traditional and Hybrid reports. \u00a0Since forecasts predict a modest housing market recovery in 2026, digital tools, enhanced data and modernization-ready partners will help valuation workflows remain efficient and competitive. Lenders that proactively integrate digitized reporting, structured data feeds and automated review checkpoints will gain an edge as the industry shifts toward <\/span>data-driven standards with UAD 3.6<\/span><\/a>.<\/span><\/p>\n

2. The UAD 3.6 overhaul begins now<\/span><\/h3>\n

For lenders who may not be fully immersed in the details, UAD 3.6 is the first significant overhaul of appraisal data, structure and reporting in decades. It replaces the legacy form-driven system with a modern, dynamic data framework designed to support consistency, risk alignment and modernization across the entire valuation lifecycle. In short, it changes how every appraisal is completed, delivered and reviewed, making preparation urgent; not optional.<\/span><\/p>\n

The GSEs\u2019 rollout timeline reinforces this urgency. Limited production began in September 2025, with broad production runs continuing through November 1, 2026, and the mandate taking effect on November 2, 2026. That means lenders have less than a year to ensure their LOS, QC tools and AMC partners can ingest, display and review structured UAD data without workarounds or manual reformatting. With the Uniform Residential Appraisal Report (URAR) shifting to an entirely new structure, the operational impacts will be felt across underwriting, QC and secondary-market functions.<\/span>\u00a0<\/span><\/p>\n

Delaying preparation invites disruption, especially since appraisers, software providers and lenders all navigate the transition simultaneously. To help lenders stay ahead, Class Valuation built a comprehensive <\/span>UAD 3.6 Resource Hub<\/span><\/a>, which includes:<\/span>\u00a0<\/span><\/p>\n