Do You Know What URLA Stands For?

November 30, 2020 at 9:22 am 2 comments

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. 

Now for the bad news. While many of these changes make sense, it means that your mortgage staff, which is responsible for accurately filling out these forms, must be trained and knowledgeable about the new updates. Furthermore, you have to make sure that your systems have integrated the new forms and that all systems are ready to go no later than March 1st. That is the date on which Fannie and Freddie will stop accepting the old forms. 

My hope is that for many of you, this is old news, and I am simply restating the obvious. For those of you for whom work needs to be done, the time is now to make sure your systems are ready to go before you settle your brains for a long winter’s nap. 

Entry filed under: Compliance, Federal Legislation, Mortgage Lending, Regulatory. Tags: , , .

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2 Comments Add your own

  • 1. Mark Welshoff  |  November 30, 2020 at 3:34 pm

    Hi Henry, If we do Home equity loans for 15 years or less and hold them in our portfolio, do we need to use the new form?

    • 2. Henry Meier  |  December 1, 2020 at 5:29 pm

      No you are not require to use the form if you are only holding loans in portfolio but it is the best way of insuring that you are complying with industry standards


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Authored By:

Henry Meier, Esq., Senior Vice President, General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association. In addition, although Henry strives to give his readers useful and accurate information on a broad range of subjects, many of which involve legal disputes, his views are not a substitute for legal advise from retained counsel.

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