Fannie Mae And Freddie Mac Will Update Uniform Residential Loan Applications In November 2020
The Federal Housing Finance Agency announced three years ago that they were changing the Uniform Residential Loan Applications used by the lending industry. It will the first change in 20 years. The GSEs later dictated that lenders would be required to begin using the new loan application by February 1, 2020.
But that all changed earlier this year. The GSEs delayed the mandatory use of the redesigned Uniform Residential Loan Application.
The FHFA postponed the implementation of the URLA to an unspecified date. However, the GSEs revealed Wednesday a new date for the mandatory use of the new URLA.
GSEs will require lenders to begin using the new URLA by Nov. 1, 2020.
The FHFA directed the delay in the use of the URLA. FHFA ordered the GSEs to remove the language preference question and housing counseling information from the updated URLA form.
The mortgage industry welcomed the move including the Mortgage Bankers Association. The MBA claimed that the language preference question may cause more problems than it solves.
However, a group of nearly 20 prominent Senate Democrats called on the FHFA to undo the alterations to the URLA.
The GSEs have now established a new date for the mandatory use of the new URLA form.
As a result, lenders may begin using the new URLA form on Sept. 1, 2020.
The use of the new URLA form is mandatory will be mandatory as of November 1st.
Lenders will not accept current loan applications on current forms after on November 1st.
Also, the GSEs will not accept the current URLA forms after Nov. 1, 2021.
To read the full URLA implementation timeline from the GSEs, click here.