Revised Uniform Residential Loan Application (URLA) Overview

Transcription

1 Revised Uniform Residential Loan Application (URLA) Overview The new improved URLA is intended to capture a more complete picture of the consumer and the property being financed. This information is intended to provide a lender with the details needed to make an informed decision on potential loan approval. Much of the information captured is the same as what is obtained on the current application, however the amount of detail required has been expanded. Here s an overview highlighting what is required in each section of the new improved mortgage application. Let s get started... At the very top, the lender enters their loan reference number, the number assigned and used as the loan s identifier throughout the process. This loan ID is the same number entered on the Loan Estimate and Closing Disclosure. In addition, the lender should also enter any Agency or MI case number assigned. Note: If there is more than one borrower the lender must complete an application for the Primary Borrower indicating there are other borrowers in connection with the loan (see Section 1a below). A separate application must then be completed for each additional borrower. The borrower s name must be entered at the bottom of each page of their specific application. The following highlights the information entered into each section of the new form.

2 Page 1 Section 1: Borrower Information. Here the lender enters the consumer s personal information along with all employment and income data. This includes: 1a. Personal Information Name of Primary Borrower, along with any AKAs Social Security Number Date of Birth / Type of Citizenship Individual or joint application, with name of joint applicant, if applicable Marital Status / Dependent information All contact phone numbers, as well as contact information Current Address Information w/ additional residence information if less than 2 years at current address Mailing Address, if different Military Service Information Note: New Information on the applicant s Language Preference. Here an applicant can indicate an option for communication with the lender in a preferred language. The lender is not required to communicate in the selected language but has the option to do so, if capable, to assist the consumer in a better understanding of the transaction. 1b. Current Employment/Self Employment and Income Current Employer or Business Name, address, phone Position, start date and time employed Indication of family employment Business Owner/Self Employed status Gross Monthly Income Breakdown Page 2: Borrower Information (Continued) 1c. If Applicable, Information about Additional Employment and/or Self Employment and Income Enter the same information as entered in Section 1B for any additional sources of income If there is no additional employment, check the box for Does Not Apply

3 1d. Previous Employment/Self Employment and Income information Enter this information only if the current employment is less than 2 years Otherwise check Does Not Apply 1e. Income and Other Sources Enter any income derived from sources other than employment, e.g. Alimony, Interest & Dividends, Pensions, SSI Enter each income source and amount separately If none, check the box for Does Not Apply Section 2: Financial Information Assets and Liabilities. This section lists all the applicant s assets to be used in the transaction along with all debts. 2a. Assets. List all assets being used by applicant, e.g. Checking, Savings, Mutual Funds, Stocks, etc. Indicate the type of each asset, the institution involved, account number and cash or market value, with total 2b. Other Assets Enter the type and amounts of other assets, e.g. Earnest Money, proceeds from sale of prior home, rent credits, other Enter the asset type and its cash or market value If none, check the Does Not Apply box 2c. Liabilities Here is where all the applicant s debts get entered Indicate the type of debt, i.e. revolving or not, Creditor s name, Account Number, UPB, if it will be paid off before closing and the monthly payment 2d. Other Liabilities & Expenses Indicate if the applicant carries any additional debts or liabilities such as alimony, child support, job related expense and the like Check Does Not Apply if none

4 Section 3: Financial Information Real Estate. Enter information about any other real estate owned by the applicant. 3a. Property You Own Address/location Value, Status, Monthly T&I expenses and any rental income Outstanding Mortgage loan information - Creditor - Account Number - Monthly Payment - UPB (will it paid off prior, or at closing) - Type of mortgage - Credit limit, if applicable (HELOCs) Page 3: Real Estate info (Continued) 3b. If Applicable, Complete Information for Additional Property Enter the same information as above. Section 4: Loan and Property Information. Here enter the information about the property being purchased and its purpose. 4a. Loan and Property Information Loan amount and purpose, e.g. purchase, refinance, other Property address Number of units and value Intended occupancy Indicate if the property is of mixed use and/or a Manufactured Home

5 4b. Other Loans on the Property being financed (liens) Creditor Name, type of lien, monthly payment, amount outstanding and total credit line available, if applicable 4c. Rental Income on Property purchased (purchase only) From 2-4 units and/or investment properties Enter amount of expected rental income 4d. Gifts or Grants Enter type of gift/grant Indicate if deposited or not Source Value Page 4: Declarations Section 5: Declarations. This asks specific questions of the applicant that must be answered 5a. About the Property and the money used in the transaction 5b. About the applicant s finances Page 5: Acknowledgements Section 6: Acknowledgements and Agreements explains the consumers legal obligations in signing the application. Borrower signature and date.

6 Page 6: Additional Information Section 7: Demographic Information (HMDA data) Lender must enter for the applicant (required in 2018 to collect required HMDA data). Borrower(s) may select all that apply in each category. Ethnicity Sex Race For applications taken in person, the lender must indicate if the following were done based on visual observation or surname if not provide by the applicant - Ethnicity - Sex - Race Indicate if the information was obtained by either - Face to face interview (includes video) - Telephone - Mail/fax - /internet Section 8: Loan Originator Information In this section the lender/originator must provide: Loan Originator s Company Name/Address Loan Originator s Company NMLS ID No. / State License Number LO s Name LOs NMLS ID No./State License Number LO s address and phone number Signed and dated by the LO