WHAT IS THE UNIFORM

RESIDENTIAL LOAN

APPLICATION?

QUESTION ?

WHAT IS THE UNIFORM

RESIDENTIAL LOAN

APPLICATION?

The URLA (also known as the Freddie Mac Form 65 / Fannie Mae Form 1003) is a standardized document used by borrowers to apply for a mortgage. The URLA is jointly published by the GSEs and has been in use for more than 20 years in all U.S. States and Territories.

WHAT HAPPENED THAT

CHANGED THE URLA?

QUESTION ?

WHAT HAPPENED?

• Improves the collection of relevant information of the borrower & layout of those details to be used as the standard in the industry.

• Fannie Mae & Freddie Mac redesigned the Uniform Residential Loan Application (URLA) Fannie Mae Form # 1003 / Freddie Mac Form # 65.

• Fannie Mae consulted with lenders, technology providers, FHA, VA, USDA, GNMA, MI companies, trade associations, housing advocates, & consumer groups to obtain feedback about the redesigned URLA.

HIGHLIGHTS OF THE NEW URLA

WHAT ARE THE HIGHLIGHTS

AND BENEFITS OF THE NEW

URLA?

QUESTION ?

HIGHLIGHTS OF THE NEW URLA

• The updated form is more consumer-friendly, supports accurate data collection, & better efficiency

• Supports collection of loan application details that are relevant & useful in making an underwriting decision

• Professionally designed• Consumer & industry tested• Spanish version also provided

BENEFITS OF THE NEW URLA

• Actual loan application process doesn’t change for lenders or borrowers

• Cleaner overall look & feel – more white space & easier to navigate

• Consistent & simplified organization of fields & labels

• Clearer upfront instructions to enable borrower self-service

• Defined separation of borrower & lender information

• New & updated fields reflect current mortgage lending business requirements.

• Any fields considered obsolete were removed

• Updated government monitoring information in accordancewith the new HMDA requirements

• More relevant data collection• More flexible data collection

• Easier to complete• Easier to review• Easier to apply

BENEFITS OF THE NEW

URLA, (CONTINUED)

LENDER BENEFITS BORROWER BENEFITS

NEW COMPONENTS FOR

YOU TO BE AWARE OF FOR

THE NEW URLA

QUESTION ?

5 COMPONENTS OF THE NEW URLA

• Lender Loan Information

• Borrower Information

• Unmarried Borrower Addendum

• Additional Borrower Information

• Continuation Sheet

USE WITH EVERY LOAN USE AS NEEDED

Borrower InformationSection 1: Borrower Information – Asks about borrower’s personal information, income from employment & other

sources to be considered to qualify for the loan.

Section 2: Financial Information – Assets & Liabilities – Collects details about things the borrower owns that are

worth money & want to be considered to qualify for the loan. It also asks about debts that are paid monthly.

Section 3: Financial Information – Real Estate – All properties currently owned by the borrower are shown here &

what is owed on them.

Section 4: Loan & Property Information – Asks about the purpose of the loan & the property to be purchased or

refinanced.

Section 5: Declarations – Contains specific questions about the property, funding, & past financial history.

Section 6: Acknowledgements & Agreements – Informs the borrower about their legal obligations when they sign

the URLA.

Section 7: Military Service – Inquires about the borrower’s (or deceased spouse’s) military service.

Section 8: Demographic Information – Asks about the borrower’s ethnicity, gender, & race.

Section 9: Loan Originator Information – Must be completed by the Loan Originator.

SECTIONS OF THE NEW URLA

SECTIONS OF THE NEW URLA, CONTINUED

Lender Loan Information

• Property & Loan Information

• Title Information

• Mortgage Loan Information

• Qualifying the Borrower

All Borrower Information + All Lender Loan Information = Complete Application

DOES THE REDESIGNED URLA

CHANGE THE APPLICATION

ORIGINATION PROCESS?

QUESTION ?

DOES THE REDESIGNED

URLA CHANGE THE

APPLICATION

ORIGINATION

PROCESS?

The loan application relationship exists between the applicant(s) and the lender. The GSEs do not prescribe how the lender should interact with applicants or process loan application data.

HOW TO USE BORROWER & ADDITIONAL

BORROWER FORMS

For 1 Applicant: Complete the Borrower form

For 2 Applicants with joint financial information, EITHER:1. Complete the Borrower & Additional Borrower forms & report the assets, liabilities, &

real estate for one of the applicants only on the Borrower form, OR2. Complete a separate Borrower form for each applicant, BUT:

a. Report joint assets, liabilities, & real estate on only one of the form 1003s, UNLESS:b. Applicants are not collaborating when completing the loan application – in which

case any joint assets, liabilities, & real estate may be duplicated on each form.

HOW TO USE BORROWER & ADDITIONAL

BORROWER FORMS, CONTINUED

For 2 Applicants with separate financial information, EITHER:1. Complete the Borrower & Additional Borrower forms & report the assets, liabilities, &

real estate for each applicant on the Borrower form, OR:2. Complete a separate Borrower form for each applicant

For 3 or more Applicants: Use any combination the Borrower and Additional Borrower forms in accordance with the above examples.

WHAT ARE THE TIMELINES?

QUESTION ?

URLA IMPLEMENTATION TIMELINE• March 1, 2021 – Lenders must use updated 1003 & DU Spec for all new loan applications

received on or after 03/01/2021• Pipeline loans (applications received before 03/01/2021) must use the same format as

initially submitted.• March 1, 2022 – Old 1003 forms & legacy formats no longer accepted.

WHAT SHOULD I BE DOING

NOW TO PREPARE FOR THE

REDESIGNED URLA?

QUESTION ?

WHAT SHOULD I BE DOING

NOW TO PREPARE FOR THE

REDESIGNED URLA?

On April 14, 2020 the GSEs published an update to the redesigned URLA that changed the effective date to January 1, 2021. The effective date is the only change to the URLA. Previously, on January 29, 2020, the GSEs published an updated version of the redesigned URLA reflecting all the changes to content, appearance, and functionality.

In addition, the GSEs published the following updated supporting documents to their respective URLA web pages:

• URLA Rendering Design Options - rendering guidance addressing the updated interactive URLA components’ appearance and functionality; and

• URLA Instructions - directions for completing new URLA form fields and clarifying existing usage.

THE FOLLOWING

ARE SOME

GENERAL STEPS

THAT WILL HELP

YOU PREPARE:

• Download and review the final updated interactive (model) URLA forms.

• Identify any data on the updated redesigned URLA that you do not currently collect and develop a plan to obtain that data.

• Review updated rendering guidance with your document preparation provider or web-based development teams.

• Review updated instructions with front office staff to be sure the intention of each form field is well-understood.

• Regularly check each GSE’s URLA web pages for additional updates to supporting documents.

WILL A LENDER BE REQUIRED TO

REPURCHASE A LOAN IF THE AUS

DATA FORMAT SUBMITTED AND

THE URLA FORM DO NOT MATCH?

QUESTION ?

WILL A LENDER BE REQUIRED TO REPURCHASE A LOAN

IF THE AUS DATA FORMAT SUBMITTED AND THE URLA

FORM DO NOT MATCH?

The GSEs do not intend to require a lender to repurchase a mortgage loan started before the mandate date solely due to the lender’s use of the legacy AUS data format with the redesigned URLA (and vice versa). However, it is a lender’s responsibility to ensure the data used to underwrite and determine eligibility is accurately reflected in the transaction, and that the lender has otherwise complied with the terms of their contracts with the GSEs. Lenders must apply all policies that may or may not be represented on the new vs. old URLA form and included or not included in either of the GSE's data file formats: MISMO v2.3.1, v2.4, v3.4, or the RLD 1003, v3.2 (1003 Flat File).

QUESTIONS?

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Property of First Heritage Mortgage Services 2021 Version: 02/05/2021