Introducing the Improved Uniform Residential Loan Application
For the first time in more than two decades, the Uniform Residential Loan Application (URLA) form underwent a significant change. URLA (also known as the Freddie Mac Form 65 / Fannie Mae Form 1003) is a standardized loan application used by borrowers to apply for a mortgage. Fannie Mae and Freddie Mac, in partnership with the mortgage industry, has redesigned the loan application to provide greater efficiency, transparency, and certainty between borrowers and lenders. All mortgage companies are now required to implement the new application.
The loan application process itself will not change. The new form now requires more information from both the borrower and the lender. The terminology has been simplified, making the document easier for borrowers to understand and complete.
Here is a breakdown of the changes on the new loan application.
What are some of the biggest changes on the new application?
The new application is longer than previous versions.
Will all the questions be changing on the new application?
The short answer is No. Some questions were changed, others were added, and a few were moved.
How will the changes impact borrowers?
For first-time borrowers, the changes will not have a significant impact as they have yet to complete a mortgage loan application. For seasoned borrowers, there will be some noticeable changes including:
- It’s easier to navigate with larger fonts and organized sections.
- Additional questions around:
- current and previous properties owned.
- finances and declarations.
- Clearly defined options for assets.
- New self-employed borrowers.
- “Additional Borrower” component added that can be used to streamline collection of assets and liabilities.