Fannie Mae and Freddie Mac Publish Redesigned Uniform Residential Loan Application Form and Dataset

Fannie Mae and Freddie Mac announced the publication of the redesigned Uniform Residential Loan Application (URLA), the standardized form used by borrowers to apply for a mortgage loan. This is the first substantial revision made to the form in more than 20 years and the changes are designed to allow lenders to deliver an easier, more consumer-friendly loan application experience. The redesigned URLA form includes a reorganized layout, simplified terminology, and new data fields that capture necessary information in an easy-to-read format. Additionally, the GSEs worked together to create a common corresponding dataset, called the Uniform Loan Application Dataset (ULAD) to ensure consistency of data delivery.

The documents are now available online and lenders may start using the new URLA on January 1, 2018.  A timeline for the required use of the redesigned URLA and ULAD will be established at a later date.

Revisions made to the URLA form and corresponding ULAD include:

  • Redesigned format: Improved navigation and organization that will support accurate data collection and better efficiency for a more consumer-friendly experience.
  • New and updated fields: Capture loan application details that reflect today’s mortgage lending business and support both the GSEs’ and government requirements.
  • Clearer instructions: Simplified terminology enables borrowers to complete the loan application with less help from the lender.
  • Revised government monitoring information: Incorporates the revised Home Mortgage Disclosure Act (HMDA) demographic questions.
  • Spanish informational version: Will be available soon.

Compliance Question of the Week

Under Reg Z’s private education loan rule, several types of loans are exempt from the disclosure requirements. For example, loans secured by a dwelling or that are open-end are exempt from the requirements. Does this mean that a Visa credit card would be exempt from this part of the rule too?

To qualify as a Private Education Loan under 12 CFR 1026.46 the loan needs to meet a few criteria.

  1. Is not made, insured, or guaranteed under title IV of the Higher Education Act
  2. Is extended to a consumer expressly, in whole or in part, for postsecondary educational expenses, regardless of whether the loan is provided by the educational institution that the student attends
  3. Does not include open-end credit or any loan that is secured by real property or a dwelling
  4. Does not include an extension of credit in which the covered educational institution is the creditor.


The creditor must comply only if the extension of credit also meets the other parts of the definition of private education loan. For example, if the creditor uses a single application form for both open-end and closed-end credit, and the consumer applies for open-end credit to be used for postsecondary educational expenses, the extension of credit is not covered. Similarly, if the consumer indicates the extension of credit will be used for educational expenses that are not postsecondary educational expenses, such as elementary or secondary educational expenses, the extension of credit is not covered. These examples are only illustrative, not exhaustive.

The open-end credit is not covered as a Private Educational Loan under Reg Z.

This means that the VISA would be one of the exemptions for the disclosure requirements of the Private Educational Loans, but it opens a whole new can of worms.  You now need to consider 12 CFR 1026.51.  If the member, under 21, does not have a demonstrable ability to pay, they are required to have a co-signer on the account.


12 CFR 1026.46

12 CFR 1026.51

Commentary to Reg Z

Legal Briefs

National Credit Union Administration (NCUA)

The NCUA issued a warning regarding a fraudulent NCUA text message scheme. The alert reminds the public that the NCUA does not ask for personal information through the internet or telephone, including text messages.

Consumer Protection Financial Bureau (CFPB)

The CFPB released a report detailing how counties are fighting elder financial abuse across the country.

The CFPB also posted tips to help prevent elder financial abuse to its blog. The blog post offers four ways that counties can come together and help protect against financial abuse.

Federal Reserve Board (FRB)

FRB Chair Janet Yellen delivered a speech at the Federal Reserve Bank of Kansas City that discussed the Federal Reserve’s Monetary Policy Toolkit. Yellen’s speech focuses on the past, present, and future of the FRB’s Monetary Policy and the development of the tools that stemmed from the economic downturn.

The FRB released its minutes from the most recent Discount Rate Meeting.

The FRB announced the 2016 holiday currency ordering scheduled. There will be two rounds beginning in late October and ending in early December.

Fannie Mae

Fannie Mae and Freddie Mac announced the publication of the redesigned Uniform Residential Loan Application. The new application forms can be used by lenders beginning on January 1, 2018.

Federal Housing Finance Agency (FHFA)

The FHFA announced that it will offer new streamlined refinances for borrowers that have a high LTV and are unable to refinance their mortgage, even if they are current on their payments. This program will not be available until October 2017, so the FHFA announced that it will extend the HARP program through September 30, 2017.

Federal Deposit Insurance Corporation (FDIC)

The FDIC released its Summer 2016 edition of FDIC Consumer News. The current issue offers tops on choosing the right type of account, precautions when using mobile deposit capture, and how to prepare financially for a disaster.

The FDIC released its Summer 2016 Supervisory Highlights. This issue includes an overview of recently released regulations and supervisory guidance.

Federal Trade Commission (FTC)

In response to the recent floods, the FTC released a tip sheet aimed at helping consumers recognize and avoid scams associated with natural disasters.

U.S. Department of Housing and Urban Development (HUD)

HUD announced new procedures that will be used by mortgage services to help struggling borrowers remain in their homes.

Department of Defense (DOD)

The DOD issued an interpretative rule that provides clarification on its recently amended Military Lending Act final rule. The clarification addresses questions raised by the industry regarding statutory liens, payment methods, and the oral disclosures required under the rule.

Office of Foreign Assets Control (OFAC)

OFAC has updated the SDN list as of August 23, 2016. The last update prior to this was August 16, 2016.

Questions? Contact the Compliance Hotline: 1.800.546.4465,

Posted in Compliance News, Federal.