On October 23, 2019, Fannie Mae and Freddie Mac (“GSEs”) announced the publication of the updated redesigned Uniform Residential Loan Application (“URLA”).  The GSEs made available a static version of the new form in order to help industry scope the additional work necessary for implementation.  An interactive, fillable PDF version will be published in early 2020.

This version of the URLA reflects changes previously announced this past August, which I wrote about here.  A detailed description of each change is presented in Appendix 1 of the announcement.  The updates include:

·       Removal of the language preference question and the homeownership and education counseling question.  As noted in the August announcement, this information will be collected on a separate voluntary form.

·       New language in the “Use and Sharing of Information” paragraph of Section 6.

·       Removal of the military service question from the borrower information (Section 1a) and incorporated into a new Section 7 on Military Service.

·       Other minor edits for usability and consistency.

There has been some controversy over these changes, specifically, the removal of the language preference question.  Several senators recently expressed their objection to this change, claiming the change would reduce credit for mortgage borrowers.  However, the Mortgage Bankers Association and other trade groups, have supported the changes.

The GSEs plan to update their AUS specifications and supporting documents by November 2019 and announce a revised implementation timeline by the end of the year.    

Garris Horn frequently provides guidance on mortgage application issues and GSE/FHFA initiatives.  For more information contact Richard Horn at rich@garrishorn.com.