2019 Uniform Residential Loan Application (URLA) 1003 Presented by Jason Lowther Business Development Manager 2019 Uniform Residential Loan Application (URLA) 1003 BIG CHANGES COMING! Todd Halbreich Account Executive

No Fed Rate Hikes in 2019 MWF Named #1 Producing Lender

Originations commencing July 1, 2019 may use the redesigned URLA, and all new loan applications commencing February 1, 2020 must use the new URLA.  Given that the new URLA was designed to make it easier for lenders to acquire data required by HMDA, it is expected that lenders will require use of the new URLA before the mandatory implementation date in February 2020.

A few highlights of the new URLA are as follows: More detailed than the old one New fields have been added based on new federal regulations  User-friendly and a lot easier to understand for the consumer and lender 40+ new Data Points Obsolete fields have been eliminated.  For example, the applicant is no longer required to list the make and model of their automobile. There is defined separation of individual borrower applications The information a borrower must provide, acknowledge and agree to has been separated from the information the broker/lender collects Processors will love it

The application has more than doubled in size The application has more than doubled in size.  The length of the new URLA will vary depending on the number of borrowers, type of loan and type of transaction (sections are added or deleted based on loan scenarios). 

The look and feel of the redesigned URLA is similar to the Loan Estimate and Closing Disclosure and contains what is considered more easily understood language and clearer instructions.  The GSEs also created a Spanish version of the new URLA form.  However, a completed English URLA must be signed by all applicants.

URLA Benefits: GREATER EFFICIENCY TRANSPARENCY CERTAINTY Loan application process does not change for lender or borrower

Cleaner overall look and feel – more white space, easier to navigate Consistent and simplified organization of fields and labels

Clearer upfront instructions to enable borrower self-service Defined separation of borrower and lender information

New and updated fields reflect today’s mortgage lending business, with obsolete fields removed

Updated government monitoring information in accordance with the new Home Mortgage Disclosure Act (HMDA) requirements

The new URLA is a complete reinvention of the origination of a loan The new URLA is a complete reinvention of the origination of a loan.  Brokers and lenders will need to start collecting much more information, which was not previously collected.  It’s a good idea to review the new URLA and start planning how you will collect that data once required. http://www.freddiemac.com/singlefamily/sell/pdf/URLA_Instructions.pdf   https://www.elliemae.com/blog/compliance/are-you-ready-for-the-new-urla https://www.fanniemae.com/content/guide_form/urla-borrower-information.pdf 

Should you have any questions, please email: webinars@mwfinc.com

Thank you for your partnership!