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Introducing the New Improved URLA
Don’t look now! Hot on the heels of the system and technology modifications and updates needed to finalize the handling of the disclosures required by TRID, we see the new improved Uniform Residential Loan Application (URLA) looming on the horizon.
This new application is being touted by the Agencies as a benefit to both consumers and lenders. It will assist in a more comprehensive gathering of the information necessary to aid lenders in making a quicker, more informed decision on a consumer’s qualifications for the loan requested.
They claim the new, easier to read, and easier to use, format will simplify the process for collecting important information and streamline the approval process. Sounds good so far! What’s your take?
The new form basically collects the same information as the existing application. However, it goes into a little more detail, with some added twists.
First, the new application is comprised of 7 pages made up of 8 separate sections. Obviously, this means it provides for the capture of much more detail than its predecessor.
Originators need to become familiar with the additional information needed and trained in obtaining the complete, accurate data required.
Second, in the event of multiple applicants, a separate loan application must be completed on each. This may require some programming changes to existing systems to separate and aggregate specific data, like income for each, while integrating duplicate information, such as assets held jointly and property information. Just when you thought it was safe to go back to processing loans, more updates to your LOS.
The new URLA will be required in 2018. While it seems like a long way off, you know how time can fly when dealing with technology changes. Better be chatting with your technology providers now to prepare for these changes. You can get more information from Fannie Mae at New URLA. Here you’ll find sample forms, FAQs, mapping information and more.
BTW, did you know they added a 2 page addendum to the application to gather specific Lender Loan Information? This includes property and loan details, title data, specific loan type, and a section to help determine the applicant’s minimum required investment/assets needed to close. Take a look.(Lender Loan Info)
Much of this information, along with employment, income and asset information from the new URLA, can be programmed to perform a quick loan prequalification, once a credit report is obtained. After everything is then validated as entered, with a satisfactory appraisal, the loan can then quickly move to closing.
Although you still need to keep an eye in the rear view mirror for TRID, and some proposed changes, you’d better be paying attention to the technology needed to navigate the road ahead.
This road includes destinations for the new URLA requirements as well as those needed to meet the additional HMDA data collection and reporting. In case you missed it, those new data elements need to be collected for loans originated in 2017, and reported in 2018.
No rest for the weary. Ain’t progress fun?
The game has changed. Play different. We at LoanLogics are gearing up for the new, improved URLA, are you?
