Podcast
Questions and Answers
What is another name for the Uniform Residential Loan Application (URLA)?
What is another name for the Uniform Residential Loan Application (URLA)?
Which component is NOT part of the URLA?
Which component is NOT part of the URLA?
Why is accuracy particularly important in the URLA?
Why is accuracy particularly important in the URLA?
What information is specifically NOT included in Section 1a of the Borrower Information component of the URLA?
What information is specifically NOT included in Section 1a of the Borrower Information component of the URLA?
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What key aspect should an MLO focus on when assisting borrowers with the URLA?
What key aspect should an MLO focus on when assisting borrowers with the URLA?
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In what formats can the URLA be completed?
In what formats can the URLA be completed?
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What aspect of the URLA is essential during the initial application process?
What aspect of the URLA is essential during the initial application process?
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What must a borrower indicate about their application type in Section 1a of the URLA?
What must a borrower indicate about their application type in Section 1a of the URLA?
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What is required if a borrower's current employment is less than two years?
What is required if a borrower's current employment is less than two years?
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Which of the following sources can be considered as other income for borrowing purposes?
Which of the following sources can be considered as other income for borrowing purposes?
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What type of liabilities are automatically filled in the application from the credit report?
What type of liabilities are automatically filled in the application from the credit report?
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What type of occupancy refers to a property that is considered a primary residence?
What type of occupancy refers to a property that is considered a primary residence?
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Which of the following can be considered a source of gifts or grants in the loan process?
Which of the following can be considered a source of gifts or grants in the loan process?
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What does PITI stand for in the context of loan qualifying?
What does PITI stand for in the context of loan qualifying?
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If disputed information on a credit report is proven inaccurate, what is the lender required to do?
If disputed information on a credit report is proven inaccurate, what is the lender required to do?
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What does the term 'acknowledgements and agreements' refer to in the application process?
What does the term 'acknowledgements and agreements' refer to in the application process?
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What must be reported if the borrower has previously filed for bankruptcy?
What must be reported if the borrower has previously filed for bankruptcy?
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Which type of assets should be included in assessing a borrower's financial capability?
Which type of assets should be included in assessing a borrower's financial capability?
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In which section would a borrower report their existing properties?
In which section would a borrower report their existing properties?
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What is one of the consequences a borrower acknowledges when signing the application?
What is one of the consequences a borrower acknowledges when signing the application?
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Which of the following agencies are not acceptable donors for gifts related to loans?
Which of the following agencies are not acceptable donors for gifts related to loans?
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Study Notes
Uniform Residential Loan Application (URLA)
- URLA (Fannie Mae 1003 or Freddie Mac Form 65) is a standard mortgage loan application form used for conforming, government, and non-conforming loans.
- The 2021 version is standardized, user-friendly, and streamlines the process, providing a clear risk profile for the lender.
- Digital and paper formats are accepted; borrower and Loan Originator (MLO) complete respective sections
- Accuracy is crucial; MLOs must work with borrowers to ensure correct data. Errors (e.g., SSN) can cause problems (e.g., credit report).
- Accurate initial application is essential for smooth processing and early identification of potential issues.
URLA Components and Sections
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Borrower Information (Section 1):
- 1a: Personal Information: Name, address, SSN, DOB, contact details, joint/individual application. Marital status should be verified.
- 1b: Employment and Income: Current employer name, address, employment length, position, income details (breakdown), self-employment status.
- 1c & 1d: Previous Employment (if applicable): Required if current employment is less than two years.
- 1e: Other Income Sources (if applicable): Alimony, child support, capital gains, trust, VA compensation, etc.
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Financial Information (Assets & Liabilities - Section 2):
- 2a: Assets: Deposit accounts, retirement funds, investments, readily available down payment funds.
- 2b: Other Assets: Proceeds from selling other real estate, proceeds from selling non-cash assets, earnest money deposits, employer assistance.
- 2c: Liabilities: Credit cards, installment loans, debts, non-real estate leases (reported through credit bureau autofill); compare reported liabilities with credit report. Resolve credit report disputes as needed.
- 2d: Other Liabilities (if applicable): Alimony, child support, job-related expenses.
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Financial Information (Real Estate - Section 3):
- 3a: Property Owned: List any owned properties (first listed if refinance). Value, costs, occupancy purpose, rental income (if investment). PITI (Principal, Interest, Taxes, Insurance) is included in debt-to-income ratio.
- 3b & 3c: Additional Properties: Additional properties as necessary.
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Loan & Property (Section 4):
- 4a: Loan & Property Info: Address, type, value, intended occupancy, loan amount, and purpose.
- 4b: Additional Mortgages: Subordinate loans (piggyback second mortgage).
- 4c: Rental Income: Rental income associated with the property.
- 4d: Gifts & Grants: Gifts and grants connected to the transaction; verify donor information and funds.
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Declarations (Section 5):
- 5a: Property Info: Occupancy intent, relationship with seller, undisclosed loans, other transactions, pending liens.
- 5b: Borrower Finances: Foreclosures, bankruptcies, judgments, delinquencies, pending lawsuits, co-signers/guarantors.
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Acknowledgements & Agreements (Section 6):
- Consequences of misrepresentation, property as security for loan, appraisal use details, record-keeping agreements, reporting credit info, possible counseling.
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Military Service (Section 7): Information about applicant's U.S. military service.
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Demographic Information (Section 8): Ethnicity, sex, race, per HMDA (Home Mortgage Disclosure Act).
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Loan Originator Information (Section 9): Completes MLO details along with signature and date.
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Additional Forms: Additional Borrowers form, Unmarried Addendum, Continuation Sheet, Supplemental Consumer Information Form (for language preference, and homebuyer education details).
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Description
Test your knowledge of the Uniform Residential Loan Application (URLA), focusing on its components, importance, and accuracy during the mortgage loan process. This quiz covers key sections and best practices for both borrowers and Loan Originators in completing the application.
