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Questions to Ask: The Uniform Residential Loan Application

mortgage applicationThe redesigned Uniform Residential Loan Application (URLA) has 48 new data points, including additional demographic information to help the Consumer Financial Protection Bureau and other regulatory agencies to identify patterns of discrimination in the mortgage industry. With all these new data requirements, preparation is the key to avoiding any disruption to your business. 

Here are four questions to ask yourself when mapping out your URLA journey.  

  1. When Is the Right Time to Start Preparing for the New URLA? 

The government-sponsored enterprises (GSEs) have published the revised implementation timeline for the redesigned URLA and updated automated underwriting systems (AUS).  

Here are the dates you need to know: 

  • March 1, 2021: Mandate and pipeline transition period begins. 
  • March 1, 2022: Retirement date. 

The March 2021 mandatory date is not far off, so the time to prepare is now.

  1. Where Do I Start MTransition? 

When navigating your URLA transition, a key step is to ensure your loan origination system (LOS) offers end-to-end support for the redesigned form.   

Here are the first steps to consider when getting started: 

  • Review process and impacts 
  • Set up a pilot program plan 
  • Review new concepts and adjust 
  • Run your pilot 
  • Enable limited production 
  • Enable full production 
  1. How Do I Evaluate What Changes Need to Happen Within MSystem?  

To avoid disruption within your workflow, lenders should formulate implementation plans with clear goals and objectives, then execute against specific milestones. Plans should be designed to minimize disruption, support the concurrent use of old and new URLA forms, and coordinate changes across multiple vendor solutions. The overriding goal should be to prepare your organization, including training, testing, operations, and technology for this potentially jarring transition  

  1. How Will the New Form Impact MLoan Delivery Process to Investors? 

Lenders also should keep their investors’ needs in mind and be aware of where each investor stands in the transition process. Now is the time to start having these conversations to ensure that your rollout timelines are aligned and that the investors you work with will be able to process loan file data and documents in the new URLA format.

About Author: John Haring

John Haring - ICE Mortgage Technology - 1.29.2021
John Haring is the Director of Product Management at Ellie Mae, now ICE Mortgage Technology, the leading cloud-based loan origination platform provider for the mortgage industry. Prior to this, Haring directed Ellie Mae’s Compliance Enablement group leading the efforts to implement regulatory changes across the Ellie Mae ecosystem.
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