URLA – Frequently Asked Questions

The new Uniform Residential Loan Application has been broken into five components that are only used or presented to the borrower, if needed.

We have divided the questions about the URLA into those five components. Click on the one that you have questions about. Or scroll through them all. You might find questions you didn’t know you had.

General Questions

What happens if you submit the new URLA with an old DU file format and vice-versa?

The GSEs do not intend to require a lender to repurchase a mortgage loan started before the mandate date solely due to the lender’s use of the legacy AUS data format with the redesigned URLA (and vice versa). However, it is a lender’s responsibility to ensure the data used to underwrite and determine eligibility is accurately reflected in the transaction, and that the lender has otherwise complied with the terms of their contracts with the GSEs. Lenders must apply all policies that may or may not be represented on the new vs. old URLA form and included or not included in either of the GSE’s data file formats: MISMO v2.3.1, v2.4, v3.4 or the RLD 1003, v3.2 (1003 Flat File).

From the FNMA/FHLMC August 2020 Publication “Uniform Residential Loan Application (URLA) / Uniform Loan Application Dataset (ULAD) FAQs”

On April 14, 2020 the GSEs announced an extension to the URLA implementation timeline to support the industry in its response to COVID-19. The redesigned URLA effective date has been extended to January 1, 2021. Industry participants may start submitting updated AUS files to the GSEs on or after this date. The mandate date for delivering MISMO v3.4 AUS files to the GSEs has been changed to March 1, 2021. The GSE’s AUS systems will continue to accept the legacy formats for all loan application submissions until the mandate.

From the FNMA/FHLMC August 2020 Publication “Uniform Residential Loan Application (URLA) / Uniform Loan Application Dataset (ULAD) FAQs”

No, the redesigned URLA cannot be used with the existing AUS formats. After the GSEs begin accepting the new format, lenders using the redesigned URLA must use the updated AUS Specifications for each GSE.

If a legacy AUS file is submitted prior to the mandate date, the submitted file may remain in the legacy format. The lender may complete the loan using the 7/08 (rev. 6/09) URLA, even after the mandate if they submitted the file using the legacy format. However, all new applications submitted after the mandate will not be accepted if submitted using a legacy AUS file format.

From the FNMA/FHLMC August 2020 Publication “Uniform Residential Loan Application (URLA) / Uniform Loan Application Dataset (ULAD) FAQs”

Borrower Information

Where do we enter non-standard loan information, e.g., negative amortization, balloon payments, etc.?

The majority of this information is entered on the “Lender Loan Information” page where more specific loan details are entered. For example, there is a built-in checkbox in tab “L3. Mortgage Loan Information” for “Negative Amortization,” “Balloon,” “Interest Only,” “Prepayment Penalties,” and “Buydowns.” There’s also a spot for “Other: ________________,” where a different loan feature from what is listed may be entered. It is my current understanding that if you were doing a “step-rate,” you would select the “Other (explain):_________________” option in the same tab under “Amortization Type” and enter “Step Rate.” View PDF.

When would “Lender” be a source of a Gift or Grant in section 4d. Gifts or Grants You have Been Given or Will Receive for this Loan?

The new enumeration of “Lender” for FundsSourceType was added to the DU Spec for when the lender is giving the borrower a grant to cover part of the down payment. These grants are typically for lower income, lower down payment loans that help the lender meet their CRA requirements and help borrowers purchase a home. The Lender Grant is captured on the Borrower form in section “4d. Gifts or Grants You Have Been Given or Will Receive for this Loan” as the “Source.”

From FannieMae’s “Top Trending Questions For DU Specification MISMO Version 3.4

Additional Borrower

When the Additional Borrower component is used, do both the main and additional borrower sign the "Each Borrower intends to apply for joint credit. Your Initials: _______" line?

“There are two components that are required for every loan: The Borrower Information and Lender Loan Information; and then there are three additional components that will be required when applicable: one is for the Unmarried Borrower, since the Form 65 is redesigned in a one borrower format, the second one here is when there is an Additional Borrower and the third one is the Continuation Sheet to provide additional information.

From FreddieMac URLA Training, “Introduction to the Uniform Residential Loan Application (URLA)

Docu Prep: While it is likely that each borrower only signs his/her own component, the fact that the second borrower with joint credit signs the main borrower’s “URLA” component, and the fact that the specifications allow the components to be presented either individually or as a aggregated document, and the fact that the GSE’s allow flexibility in the presentment based on Vendor system set-up, and the fact that the verbiage has some ambiguity, and the fact that the GSEs are so flexible in how they allow additional borrowers to the transaction to be handled on any additional borrower component type, it is my current understanding that it would be acceptable to have all additional borrowers using the joint credit “—Additional Borrower” component also sign the “Your initials: _____” line.

How do I know when to use the “—Additional Borrower” component, as opposed to starting a new main “URLA” component?

The “—Additional Borrower” loan application is used together with the “URLA” application when there are two borrowers who have joint financial information. That said, the “—Additional Borrower” application may be used for borrowers who do NOT have joint information but wish to combine their information for ease of use.

From FreddieMac URLA Training, “Introduction to the Uniform Residential Loan Application (URLA)”; Guide: Instructions for Completing the Uniform Residential Loan Application

Unmarried Addendum

Lender Loan Information

Are Lenders required to present the component “Lender Loan Information” to the consumer?

May not be required; however, consider the following information from Fannie Mae and Freddie Mac:

  • A complete application includes at least the main “URLA” component and the “Lender Loan Information” component. -FreddieMac URLA Training
  • Here are the sections of the Borrower Information and the Lender Loan Information forms, which make a complete loan application [picture of Main URLA Borrower Information component and Lender Loan Information component]. -FannieMae URLA Traning, “Getting Started with the Redesigned 1003

Are Lenders required to deliver the component “Lender Loan Information” in the AUS at the time of Initial Disclosures?

Yes, even though some of the information may not be known or may change between the initial and final URLAs, there must be enough information in the DU submission or 1008 to make an underwriting decision. The DU Specification includes fields that only appear on the Lender Loan Information component, e.g., the “L4. Qualifying the Borrower” section, which is the updated version of the old 1003 Section VII. Details of Transaction.

Where are non-standard loan features entered on the new URLA, e.g., negative amortization, balloon payments, etc.?

The majority of this information is entered on the “Lender Loan Information” page where more specific loan details are entered. For example, there is a built-in checkbox in tab “L3. Mortgage Loan Information” for “Negative Amortization,” “Balloon,” “Interest Only,” “Prepayment Penalties,” and “Buydowns.” There’s also a spot for “Other: ________________,” where a different loan feature from what is listed may be entered. It is my current understanding that if you were doing a “step-rate,” you would select the “Other (explain):_________________” option in the same tab under “Amortization Type” and enter “Step Rate.”

If each borrower fills out his/her own main “URLA,” and there are multiple borrowers on the loan transaction, how many “Lender Loan Information” components are required on the transaction?

Just one. A completed loan application for a single transaction includes at least 1 main “URLA” component (with borrower information) and just 1 “Lender Loan Information” component on a per transaction basis.

Continuation Sheet