Good morning, folks. With the holiday season officially upon us, I figure I have about a week and a half more of your attention before you go on a mental holiday from work through January 3rd. So, in the next few days, I just want to highlight a couple of important deadlines which are quietly creeping up on the banking world.
Which brings us to today’s headline. URLA stands for the Uniform Residential Loan Application. It is the form used and required by both Fannie and Freddie, on which mortgage loan applications are processed. Given the ubiquity of the GSEs, this means that if your credit union offers mortgage loans, your credit union or vendor uses this form. Just how important is the information on this form? Well, it’s the first step of complying with virtually all mortgage lending regulations ranging from TRID to HMDA. It is also the form Fannie and Freddie use to make underwriting determinations. The bottom line is that it’s a crucial document which is undergoing major changes for the first time in 20 years.
Many of the changes are long overdue. For example, interactive drop-down boxes make it easier to write down all the necessary information without having to type it out. A lot of these changes are common sensical as we move towards paperless mortgage transactions.
continue reading »