For the first time in nearly 20 years, borrowers filling out a Uniform Residential Loan Application (URLA or Form 1003) will need to provide a little more information than before. Starting March 1, 2021, the new URLA will contain 94 new data points, bringing the total to 236, 129% bigger than the previous form. According to Freddie Mac and Fannie Mae, the new URLA will also update the physical format and layout to enhance information and usability collection and improve the borrower and lender experience. Here’s some FAQs to help you understand the changes:
Who made these changes?
Fannie Mae and Freddie Mac redesigned the Uniform Residential Loan application (URLA) after 20 years. This application change is industry wide and applies to virtually ALL residential mortgage lenders, not just NASB.
Why have these changes been made?
- To improve the applicant experience and make it more streamlined, logical and clear.
- To better standardize data collection.
- To support changes in industry, credit, underwriting, eligibility policies and regulatory requirements.
- To improve the borrower experience.
- To remove unnecessary and irrelevant questions.
What is different on the current Form 1003 compared to the new URLA?
- For some lenders, new fields have been added based on recently enacted federal regulations. There are fields for the new demographic information required by HMDA since January 2018, so applicants no longer must fill out the Demographic Information Addendum.
- Obsolete fields have been eliminated. For example, applicants are no longer required to list the make and model of their vehicle.
- There is a clearly defined separation of individual borrowers’ applications.
- The declarations have been revised and expanded.
- The information a borrower must provide, acknowledge and agree to have been separated from the information the broker/lender collects and verifies in connection with the processing and underwriting of the loan.
If I complete my application before March 1, can I use that one?
Yes. As long as you have submitted a completed application prior to the March 1st deadline, we can use that application.
I’m almost finished with my application, but I won’t be able to finish it until after March 1st. Can you just take that information and apply it to the new application?
Unfortunately, no. Borrowers must complete their own applications, so if the application isn’t completed by March 1st, you’ll need to start over in the newly designed URLA form.
If you have additional questions about the new URLA or any lending questions, contact the experts at NASB at 855-465-0753.