A new loan application for single-family loans has been unveiled for use on government-sponsored enterprise loans and government-backed mortgages.
The redesigned
Uniform Residential Loan Application was jointly developed by Fannie Mae and Freddie Mac in collaboration with industry stakeholders.
It’s been more than two decades since such substantial revisions have been made to the single-family mortgage application, Fannie and Freddie announced.
The new mortgage application was developed under the direction of the secondary lenders’ regulator and conservator, the Federal Housing Finance Agency.
“Fannie Mae and Freddie Mac have been working in collaboration with lenders, trade groups, mortgage insurers, housing and consumer advocates, technology solution providers, and other federal agencies to ensure that the revised loan application is easier to read, technology enabled and more consumer-friendly,” FHFA stated in an announcement. “Fannie Mae and Freddie Mac have also conducted extensive usability testing with borrowers and lenders across the country to ensure that the redesigned form achieves these objectives.”
Freddie noted in a news release that the in addition to a reorganized layout and simplified terminology, the revised applications includes data fields like mobile phone number, email address, and military service — in line with the Uniform Mortgage Data Program initiative.
Fannie said in its own statement that the redesigned format
supports accurate data collection and better efficiency for a more consumer-friendly experience, and the updated data fields reflect today’s mortgage market while supporting both the GSEs’ and government requirements.
Washington-based Fannie also indicated that simplified terminology will enable borrowers to complete applications with less help from lenders.
In addition, revised Home Mortgage Disclosure Act demographic questions are incorporated into the application
“The changes will allow lenders to deliver an easier, more consumer-friendly loan application experience,” Fannie stated.
The updated application will be used for Fannie and Freddie loans as well as for mortgages insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs and Department of Agriculture.
Lenders may begin utilizing the new application for single-family loans on Jan. 1. 2018, though a formal time line for required use will be established at a later date.
“Although final implementation of the new loan application is still more than a year away, and the application must still undergo ‘safe-harbor’ review by the Consumer Financial Protection Bureau, we anticipate that publication of the redesigned form now will give the industry ample time to analyze and prepare for its use in 2018,” FHFA said.
A Spanish informational version is expected to be available soon.
Fannie has provided an overview of the new application at:
www.fanniemae.com/portal/about-us/media/corporate-news/2016/6431
A sample
of the revised purchase application is online at:
www.fanniemae.com/content/tool/urla-purchase-sample-application.pdf
A sample of the revised refinance application is online at:
www.fanniemae.com/content/tool/urla-refinance-sample-application.pdf
