Implementing the Revised Uniform Residential Mortgage Loan Application
Course Number: Webinar
Course Code: n/a
The Uniform Residential Mortgage Loan Application (URMLA), also referred to as the 1003 Mortgage Application, is the industry standard form used by nearly all mortgage lenders in the United States. This basic form must be completed by a borrower to apply for a mortgage. While some lenders may use alternative forms or simply accept basic borrower information about their identity, property type and value, the vast majority of lenders rely on the 1003 form.
The URMLA was developed by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Company (Freddie Mac) as a standardized form for the industry. Mortgages need to documented according to Fannie and Freddie’s standards since both entities require the use of Form 1003, or Form 65, its Freddie Mac equivalent, for any mortgage they consider for purchase. It is simpler for lenders to use the appropriate form at the outset than to try to transfer information from a proprietary form to a 1003 when it comes time to sell the mortgage.
While the URMLA has been in use for decades, the format and content of the form has changed from time to time. On October 13, 2015, after years of discussion, the Consumer Financial Protection Bureau (CFPB) published massive revisions to Regulation C, which implements the Home Mortgage Disclosure Act (HMDA). Among other changes the revisions revised the demographic information collected on borrowers for home mortgage loans. As a result the URMLA needed to be expanded to collected the revised demographic date by the January 1,2018 effective date of the HMDA changes.
The CFPB, Fannie Mae and Freddie Mac did not play well together and were unable to complete the project by the effective date, but did manage to cobble together a Demographic Information Addendum. The content of the Addendum is covered in the program.
The bigger revisions, which go far beyond collecting expanded demographic data, expanded the form from four pages to eight pages. On August 23, 2016 Fannie Mae and Freddie Mac published the redesigned Uniform Residential Mortgage Loan Application (URMLA). Subsequently the CFPB provided clarification to its regulations, that in turn delayed completion of the URMLA. Along the way Fannie Mae and Freddie Mac made additional changes.
Finally after years of development Fannie Mae and Freddie Mac announced they will begin accepting the revised URMLA on July 1, 2019. Use of the form is mandatory February 1, 2020. Are you and your mortgage lending staff ready?
This program provides comprehensive coverage of the revision process and the content of the revised URMLA and related documents. The program includes step-by-step instructions on completing the forms and explains connections to CFPB’s Regulation B (Equal Credit Opportunity Act) and Regulation C (HMDA). Program participants receive a detailed manual that provides a thorough explanation of the revisions and revised forms.
-Regulatory requirements (Regulations B and C and OCC Part 27) for collection of demographic data;
-Implementation Dates for the New Forms;
-New Uniform Residential Mortgage Loan Application (Form 1003);
Section 1: Borrower Information;
Section 1a: Personal Information;
Section 1b through 1e: Employment and Other Income;
Section 2: Financial Information – Assets and Liabilities;
Sections 2a through 2d – Assets and Liabilities;
Section 3: Financial Information – Real Estate;
Sections 3a through 3c – Property and Additional Property;
Section 4: Loan and Property Information;
Sections 4a through 4d – Loan and Property Information, Other New Mortgage Loans, Rental Income, Gifts and Grants;
Section 5: Declarations
Sections 5a and 5b – About this Property and About Your Finances;
Section 6 – Acknowledgements and Agreements;
Section 7 – Demographic Information;
Coordination with the HMDA requirements
Section 8 – Loan Originator Information
-Demographic Information Addendum
-Additional Borrower Form
-Lender Information Form
Sections L1 through L3 – Property and Loan Information, Title Information, Mortgage Loan Information;
Sections L4 and L5 – Qualifying the Borrower and Homeownership Education and Housing Counseling;
Audience: The program is designed for mortgage loan department management and staff, compliance officers, and auditors.