Redesigned Uniform Residential Loan Application – UPDATED

The Federal Housing Finance Agency (FHFA) issued a notice regarding publication of the redesigned Uniform Residential Loan Application (URLA) form. According to the FHFA, “although final implementation of the new loan application is still more than a year away, and the application must still undergo “safe-harbor” review by the Consumer Financial Protection Bureau, we anticipate that publication of the redesigned form now will give the industry ample time to analyze and prepare for its use in 2018.

Fannie Mae’s new release states “the redesigned URLA form includes a reorganized layout, simplified terminology, and new data fields that capture necessary information in an easy-to-read format.”  An updated automated underwriting system (AUS) specification for Desktop Underwriter is expected soon.

The redesigned form’s touted highlights include:

  • Redesigned format to be more consumer-friendly and support accurate data collection and better efficiency
  • Professionally designed; consumer and industry tested
  • Dynamic electronic form in a fillable format; sections expand/contract based on information provided
  • Supports collection of loan application details that are relevant and useful in making an underwriting decision
  • Spanish informational version provided
  • The URLA will be supported by the ULAD, mapping to the MISMO version 3.4 reference model

Credit unions may not begin using the form until January 1, 2018.  In preparation, credit unions should identify any information not currently collected, and start planning to collect that information.  Credit unions should also work with vendors to ensure they will be ready to produce and receive the new data interface files.

On September 23, the CFPB followed this announcement with an Official Approval allowing credit unions to begin using the redesigned URLA starting 01/01/2017.  The CFPB believes that allowing this will ease the compliance burden by allowing credit unions to update their processes before the required compliance date of 01/01/2018.  The HMDA filing requirements do not change for 2017.

Additional links:

Fannie Mae News Release:

Fannie Mae site page with additional links:

Freddie Mac News Release:

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