The new Uniform Residential Loan Application
URLA changes are coming. Are you ready?
This will impact ANY lender whose business model involves the origination and sale of loans to the Government Sponsored Enterprises (GSEs). As part of the industry transition, the GSEs will first allow lenders to use the new URLA starting July 1, 2019. The required usage date for new applications is February 1, 2020.
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URLA matters right now
How is the URLA impacting lenders? The new URLA changes include complete redesigns of the new mortgage application input workflow, updates to documents and forms, compliance with the Uniform Loan Application Dataset (ULAD) and more.
If you are involved in the manufacture of mortgages, chances are very good that you will absolutely be affected. Although these changes are not required until February 1, 2020, now is the time for you to plan for the transition.
Frequently asked questions
Frequently asked questions
Ellie Mae will provide ongoing education and documentation for changes in business processes and software coming with the new URLA. A webinar series begins August 2018 and will continue throughout the course of the implementation project.
In addition, Ellie Mae will be providing detailed documentation and instructions about changes that affect Encompass and related products and services.
Yes, we will be supporting the concurrent use of both the current URLA and new URLA. This will be policy driven and use of the new URLA will be in the control of the lender.
Although there is verbiage in the new URLA Acknowledgements and Agreements section covering this authorization, lenders will need to work with their credit providers to assess if the URLA language will meet their record keeping needs.
No, the new URLA, like the existing URLA, does not include HELOC as a loan type.
You should consult your compliance and legal counsel with regard to how your organization will treat these scenarios. The new URLA also includes support for an unmarried addendum, where the borrower(s) may disclose additional details about their relationship and community property status.
At this time, there is no indication that any states (including the District of Columbia) will be revising their existing signature and date requirements based on the new URLA format, nor has there been confirmation from the GSE’s on how to accommodate any state specific requirements. We will share any information we receive if and when such information is made available.
Lenders should consult with their own compliance resources to determine to what extent the URLA impacts existing disclosure requirements.
These are shown on the lender pages. The lender has the option to provide the borrower with only the Borrower Information application section or the Borrower Information and the Lender / Loan Information section of the application.
Yes, Encompass Consumer Connect will support the new URLA, as will Encompass Loan Officer Connect, Encompass TPO Connect and all other Ellie Mae products as needed.
It depends. Lenders will have options on how to provide the borrower application documents – all borrowers can receive their own application or joint borrowers can be treated as an additional borrower. Additional borrowers sign the joint application, but also receive a copy of their portion of the application on ‘additional borrower’ pages. We intend to provide customers with tools that allow them to determine how best to satisfy their consumer’s needs.
Ellie Mae plans on making the new URLA functionality generally available in Q3 of 2019 in order to provide clients with time to become familiar with the changes, train users, update policies and procedures in addition to any existing configuration or customization that may be impacted. This will be policy driven and use of the new URLA will be in the control of the lender.
We aim to have the first incremental delivery available in client’s test environments in Q3 2019, with regular updates through Q2 2020 as needed.
No. We are going to retain the same user experience in the Encompass Smart Client. There will be new URLA pages to replace the existing 1003 pages, but the new URLA pages will follow a similar format and flow.
The short answer to this is no! There is significant reuse of data between the existing URLA and the new URLA. There are some net new fields required due to new data being collected on the form, as well as new expandable sections. The GSEs have provided an excellent guide to compare the old and new forms, and Ellie Mae is preparing a companion data guide to assist our clients in understanding how the comparison relates to Encompass fields. This data guide will be made available on the resource center as we get closer to launching the new URLA and will be posted to the Ellie Mae Resource Center and made available to Integrated Service Providers.
The GSEs have indicated that they will continue to accept older AUS formats until February 2021. Since we are aware that there will be a significant period of transition time for our customers to the new MISMO format, including a need to support the import of older loan files, we plan to support both FNMA 3.2 and MISMO 3.4 for the foreseeable future.
Ellie Mae and the GSEs (Fannie Mae and Freddie Mac) are strategic partners and are in regular communication on many industry topics, including the new Uniform Residential Mortgage Application (URLA) also referred to as either the Fannie Mae Form 1003 or Freddie Mac Form 65. On September 26, 2017, the GSEs announced the planned implementation timeline for the new URLA. Lenders may choose to use the new URLA starting July 1, 2019. However, the GSEs will not require use of the new URLA until loan applications taken on or after February 1, 2020.
Ellie Mae is aware of the new timelines and is actively working with the GSEs to implement the new URLA and the associated dataset, ULAD (Uniform Loan Application Dataset). Ellie Mae is also assessing the impacts that these changes will have on our partner integrations, including the automated underwriting systems (AUS) used by Fannie Mae and Freddie Mac.
Our plan is the make the new URLA generally available for testing in Q3 2019.
For more specific information about these updates, here is the link to the GSEs’ announcement: https://www.fanniemae.com/content/news/urla-announcement-september-2017.pdf
This depends on the jurisdiction. The footer shows the borrower to which the page applies. As there can be multiple copies of the URLA for different borrowers in the package, the name on the bottom is a guide for identifying which borrower is associated with that particular page.
Yes, we will provide a list of all old data fields mapped to the new fields. This will be available as we get closer to launching the new URLA and will be posted to the Ellie Mae Resource Center.
The policy will be company level, and will drive a mandatory use date.
As mentioned previously, there is no indication at this time that any states (including the District of Columbia) will be revising their existing requirements based on the new URLA format, nor has there been confirmation from the GSE’s on how to accommodate any state specific requirements. We will share any information we receive if and when such information is made available.
Now available: URLA Instructional Guide
Ellie Mae has created the Uniform Residential Loan Application Instructional Guide that provides detailed instructions for the completion of the redesigned URLA and a quality control checklist to verify accurate completion based on the borrower’s specific loan scenario.Learn more
Are you an Ellie Mae customer? Learn all about the URLA at Experience 19
Join industry experts, including representatives from Fannie Mae and Freddie Mac, who will help you understand what steps to take in order to implement the new URLA across your business. Attendees will walk away with actionable strategies and insights to ensure your organization is fully prepared. Our URLA Reveal is a two-part series to help you plan for the changes and see how fellow mortgage innovators are getting ready for a seamless transition.View sessions