In a recent mortgage news post, we discussed the impending Fannie and Freddie deadline for implementing the redesigned Uniform Residential Loan Application. However, a recent update states that the transition is now postponed to an unspecified date.
GSEs want additional changes to the new URLA form, thus, are no longer requiring lenders to make the transition by Feb. 1, 2020.
The Federal Housing Finance Agency and GSE want to “allow industry participants time to make the necessary changes,” and felt the transitional period would suffice. However, concerns were raised by the Mortgage Bankers Association.
The MBA, along with other groups, challenged the Language Preference Homeownership Education and Housing Counseling questions. It appears that both of those questions will now be removed from the mandatory URLA form and will be included on a separate voluntary form.
Additional changes to the redesigned URLA include:
- A revision to the “Use and Sharing of Information” found in Section 6.
- Moving the Military Service question (Borrower Information, Section 1a.) to the Demographic Information in Section 7
- Additional minor consistency and usability edits throughout the form
What this Means for Mortgage Brokers
Does this mean that you should delay updating your loan processing to a digital one? Absolutely not! Postponing the mandatory implementation of the new URLA form is not indicative of things slowing down. Rather, it’s proof that the mortgage industry is being purposeful about the transition.
And so should you! Get ahead of the changes by transitioning to a digital mortgage platform today. By the time any mandatory deadlines are imposed, you’ll already be the leader of the pack.