New Mortgage Application Puts Everyone on the Same Page
As mortgage lending becomes more digital in every step of the process, lenders, investors and regulators are taking a long hard look at the data underlying every loan. For all of the parties to communicate effectively, loan data needs to flow seamlessly from application to underwriting to closing to investors.
In response to the need for an overhaul of the existing mortgage-application process and information collected from borrowers, government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac are implementing the first major overhaul of the Uniform Residential Loan Application (URLA) in more than 20 years.
This redesign provides both lenders and borrowers with a more consumer-friendly, streamlined loan application. With input provided from several federal agencies, the new URLA will help prevent information gaps in the initial application.
Also, the GSEs, under the direction of their federal regulator, jointly created a data set that’s a component of the Uniform Mortgage Data Program. It is part of an effort to enhance data quality and standardization that meshes with their underwriting programs.
While required use of the new URLA and the data set is still more than a year away, optional use begins in July of 2019. Mortgage originators and lenders need to understand what is changing and how they can work with their technology partners to ensure a smooth transition.
Drop us a line!
Use our contact form or call us 972.458.8583