Redesigned Uniform Residential Loan Application (URLA)—Coming March 2021
Thanks to the efforts of the GSEs, Fannie Mae and Freddie Mac, the Uniform Residential Loan Application (URLA) has been redesigned for both lenders and borrowers alike. The idea behind the redesign is to improve the efficiency and transparency of the loan application for consumers, as well as allow lenders to move forward in the digitization of the loan origination process.
Currently, the redesigned URLA will be available for use by lenders in a “testing” phase starting on August 1, 2020 and will be required for use in all loans eligible for sale in the secondary market starting on March 1, 2021. The new URLA was initially set to be implemented in February of 2020 but was pushed back due to the COVID-19 pandemic.
New Implementation Schedule Overview for the redesigned URLA:
- August 1, 2020: Limited Production Begins
- January 1, 2021: Open Production Begins
- March 1, 2021: Mandate and Pipeline Transition Period Begins
- March 1, 2022: Retirement Date
To view the full Implementation Schedule, click here
Some highlights of the redesigned URLA, include:
- Option for a language preference
- Clearer instructions to improve borrower self-service
- Updated fields in accordance with today’s lending environment
- Clearer separation of lender and borrower information
- Separation of individual borrower applications in a single loan package
- Reorganization for a more consumer-friendly experience
- More detailed employment history income section
- New Home Mortgage Disclosure Act (HDMA) demographic data section
Contact an Account Executive today for more information on how the new URLA will impact your business.