Extended Deadline for New Uniform Residential Loan Application for MPF Customers
Fannie Mae and Freddie Mac published an announcement and appendix on October 23, 2019 regarding updated components of the redesigned Uniform Residential Loan Application (URLA). Currently, deadlines for implementing the URLA and automated underwriting system (AUS) have been extended from the prior requirement date of February 1, 2020; however, a new implementation date had not been announced as of October 31, 2019.
The MPF Program requires financial institutions to use the updated URLA as deadlines are set by Fannie Mae and Freddie Mac; in the meantime, financial institutions are to utilize the most updated URLA version. Fannie Mae and Freddie Mac are currently on track to publish their updated AUS specifications and plan on announcing implementation timing and mandates by the end of the year.
As a financial institution, you should ensure your documentation system is ready for the upcoming change and testing it to make sure there is an easy transition. In addition, policies and procedures should updated and the staff trained to ensure they are prepared and understand the new changes. Once the new form is rolled out, ensure testing is being done to ensure compliance and proper utilization of the form by implementation date.
Ensure your financial institution is kept up to date on new deadlines and requirements from Fannie Mae and Freddie Mac as the year progresses.
For additional information contact the author Natalie Reifsneider at firstname.lastname@example.org.