Design, Update, Mandate: What Loan Originators Need to Know About the New URLA

Design, Update, Mandate: What Loan Originators Need to Know About the New URLA

In 2016, the GSEs Fannie Mae and Freddie Mac unveiled a redesigned version of the uniform residential loan application, marking the first changes to the form in nearly 20 years.

The new URLA update is intended to modernize the form with a thoughtful layout designed to support the efficient and accurate collection of information and data and to help the industry identify ways to better support mortgage borrowers during origination and servicing, particularly non-English speaking consumers.

This meant creating a cleaner look and feel for the form that closely mirrored the loan estimate and closing disclosures, removing outdated fields not necessary for qualification, and adding new fields to reflect changes to policy and underwriting guidelines.

And now, after multiple rounds of updates and delays, the industry will finally be moving forward with the new URLA form. Beginning March 1st, use of the new URLA will be mandatory.

How Can a Loan Originator Make Sure They're Compliant with the New URLA Mandate?

The GSEs have made it clear that any loan applications that were submitted on the old form, but have yet to be processed by the March 1st deadline, will be allowed to proceed. From Freddie Mac:

"Freddie Mac and Fannie Mae will continue to process applications received prior to the mandate date within the AUS format on which they were initially submitted. If a legacy AUS file was submitted prior to the mandate, the submitted file may remain in the legacy format and the lender may complete the loan using the 07/05 (Rev. 06/09) URLA, even after the mandate date."

Other than that particular exception, all other loan applications will need to use the new URLA form. Loan originators will need to ensure that they replace or transition their current in-use application materials in order to stay compliant. For LOs that use paper or a fillable PDF version of the form in their typical workflow, those resources can be easily found here.

Many lenders also utilize 3rd-party providers to deliver a web-based version of the loan application that can be completed digitally by their prospects and borrowers. This is where the lender must verify that the system they utilize is updated in advance of the mandate.

Modern mortgage technology solutions, such as Floify, have long since taken the steps to prepare for the new URLA mandate and accompanying MISMO v3.4 dataset.

In fact, support for the redesigned URLA and MISMO v3.4 dataset was already in place when we launched the third version of our leading web-based loan application in December of 2019 – in addition to other ROI boosting features such as 1003 Co-Pilot, Spanish language subtitles, and more.

Floify customers using this latest version of the platform's 1003 are able to enjoy a seamless transition to the new URLA thanks to a simplified configuration and easy migration of existing custom application questions or automated document request logic.

Additionally, we are providing a number of invaluable services to our customers to help them alleviate concerns and stress throughout the process. These free services include a complimentary test environment, step-by-step video instructions, and an account review and Q&A session with Floify's Customer Support team.

If you're a loan originator in need of a modern, web-based 1003 application that supports the new URLA format and will keep you compliant so you can focus on generating business, book a demo of the Floify platform and let us show you how we can help take your workflow to the next level.