Updated Uniform Residential Loan Application Use Required in 2020
Recommendations help credit unions prepare for implementation.
The Government Sponsored Enterprises, or GSEs, Fannie Mae and Freddie Mac have developed an updated Uniform Residential Loan Application (URLA), in partnership with the mortgage industry. For applications received on or after Feb. 1, 2020, credit unions that sell loans on the secondary market will be required to use the new URLA. There is an “optional use period” that allows credit unions to start using the new URLA on July 1, 2019.
In order to prepare for the redesigned URLA, credit unions should:
- Identify any data on the redesigned URLA that you do not currently collect and develop a plan to obtain that data.
- If you use a technology solution provider, reach out to them to ensure they have copies of the updated automated underwriting system specifications. Determine the type and timeframe of testing you need to conduct with your vendor and work with them to understand when they expect to be ready to produce and receive the new data interface files. Remember, you are not mandated to start submitting loan application submission files to our Automated Underwriting System (AUS) until Feb. 1, 2020.
- If you maintain your own system, work with internal technical and business analysts to scope and schedule the tasks necessary to process the updated AUS specifications.
- Regularly check each GSE’s URLA or Uniform Residential Loan Dataset web page for additional updates to the AUS specifications to ensure you are using the most recent version. Reach out to your GSE representatives, as needed, to confirm requirements and arrange testing with the GSEs.
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Questions? Contact the Compliance Hotline: 1.800.546.4465, [email protected].