The new Uniform Residential Loan Application

URLA changes are coming. Are you ready?

This will impact ANY lender whose business model involves the 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

Will the new URLA have signature/date lines on each page for states that require it?
Is Ellie Mae planning to support both the current and new URLA?
Will Ellie Mae provide ongoing information and education about the changes affecting Encompass and related products and services with the new URLA?
Will the new application have verbiage that authorizes the lender to pull credit?
Will an unmarried borrower pair be able to share the same application, or will they have to continue to have separate URLA's?
How does the new URLA affect disclosure requirements?
Where is the rate and term of the loan shown on the URLA?
Will Encompass Consumer Connect be leveraging the new URLA?
Will each borrower be signing their own application?
Is Ellie Mae planning on making the 'Early Use' of the new URLA in July optional?
When will Ellie Mae be providing customers with the ability to test the new URLA?
Is the format in the borrower summary and 1003 pages forms going to change?
Will all fields be changing in the new URLA?
When will the 3.2 format be replaced by MISMO?
What is Ellie Mae doing about the recently announced new URLA?
At the bottom of each page on the new URLA, it says borrower name. Is a signature required on each page?
Will Ellie Mae be providing a matrix of all old and new fields?
If optional, would that be at the loan officer or loan template level?
South Carolina requires the branch NMLS# on the loan application. Where can that information be placed on the form so that it will appear on all South Carolina applications only?
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Will the new URLA have signature/date lines on each page for states that require it?

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 GSEs on how to accommodate any state specific requirements. We will share any information we receive if and when such information is made available.

Is Ellie Mae planning to support both the current and new URLA?

Yes, we will be supporting the concurrent use of both the current URLA and new URLA. As a lender, you are able to control when you make a full transition to the new URLA before the February 2020 mandated deadline.

Will Ellie Mae provide ongoing information and education about the changes affecting Encompass and related products and services with the new URLA?

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.

Will the new application have verbiage that authorizes the lender to pull credit?

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.

Will an unmarried borrower pair be able to share the same application, or will they have to continue to have separate URLA's?

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.

How does the new URLA affect disclosure requirements?

Lenders should consult with their own compliance resources to determine to what extent the URLA impacts existing disclosure requirements.

Where is the rate and term of the loan shown on the URLA?

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.

Will Encompass Consumer Connect be leveraging the new URLA?

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.

Will each borrower be signing their own application?

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.

Is Ellie Mae planning on making the 'Early Use' of the new URLA in July optional?

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.

When will Ellie Mae be providing customers with the ability to test the new URLA?

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.

Is the format in the borrower summary and 1003 pages forms going to change?

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.

Will all fields be changing in the new URLA?

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.

When will the 3.2 format be replaced by MISMO?

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.

What is Ellie Mae doing about the recently announced new URLA?

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

At the bottom of each page on the new URLA, it says borrower name. Is a signature required on each page?

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.

Will Ellie Mae be providing a matrix of all old and new fields?

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.

If optional, would that be at the loan officer or loan template level?

The policy will be company level, and will drive a mandatory use date.

South Carolina requires the branch NMLS# on the loan application. Where can that information be placed on the form so that it will appear on all South Carolina applications only?

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

Resources

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