Starting March 1, 2021, all lenders who intend to sell closed residential mortgage loans to Fannie Mae or Freddie Mac will be required to use the new Uniform Residential Loan Application (URLA), the standard form that borrowers use to apply for a mortgage loan.
On Aug. 26, the Federal Housing Finance Agency (FHFA) announced an extension of its policies providing for Fannie Mae and Freddie Mac (the GSEs) to continue to purchase loans that entered a COVID-related forbearance prior to purchase. The GSEs’ policies were set to expire Aug. 31, but the announcement extends the policies to Sept. 30.
The first big change with these forms is in the Uniform Loan Application Dataset, or ULAD, for short. This dataset is used to submit your application data to Fannie Mae and Freddie Mac. The GSEs mapped ULAD to MISMO version 3.4. They used 3.4 because the GSEs would have to engage in extensive use of extensions to have used a lower version of MISMO. They also state that you must use ULAD to submit your data to Desktop Underwriter and your Loan Product Advisor if you're using the new, redesigned URLA. The two things need to go together. If you are interested in the data transmission of your application data to the GSE's automated underwriting systems, they did provide ULAD testing cases on their website, which you can find at fanniemae.com or freddiemac.com.
Understanding the New URLA
The new URLA is bringing us into the 21st century. Along with improving accuracy and the clarity of information being provided by the borrower, the coming changes will make the process more efficient for lenders. As with all changes, there is a learning curve. The key to preparing for a smooth transition is understanding the changes, identifying where they will be on the new forms and beginning testing to eliminate workflow interruptions.
Technology to validate data, assure quality and compliance for all pre-funded home loans
TORRANCE, Calif., Sept. 18, 2018—DocMagic, Inc., the premier provider of fully-compliant loan document preparation, regulatory compliance and comprehensive eMortgage services, announced today that Freddie Mac has implemented its SaaS-based eVault technology and SmartREGISTRY™ platform.
DocMagic’s eVault provides a secure electronic repository for storing documents and performing automated eNote certification to Freddie Mac eMortgage lenders via Loan Selling Advisor®. By automating the eNote certification process, Freddie Mac will speed the funding process, thereby improving liquidity in the mortgage markets and reducing lender’s warehouse line costs.
Join us for a Free DocMagic Webinar: Get Prepared for the UCD Requirement!
July 11th | 10AM PDT
Join our own Tim Anderson, Director of eServices, along with Kathy Scanlon, Lead Project Manager – UCD / Loan Closing Advisor at Freddie Mac, for a FREE educational webinar! Learn what you need to know to prepare for the Uniform Closing Dataset (UCD) Requirement before the September 25, 2017 deadline.
Industry experts weigh in on recent changes to Fannie Form 1003/Fredie Form 67.
By Patrick Barnard
In the first update for the form in more than 20 years, government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac have redesigned the Uniform Residential Loan Application (URLA – Fannie Form 1003/Freddie Form 67) in order to make it simpler to use and to add new data fields for increased reporting under the Home Mortgage Disclosure Act (HMDA).
Company joins select group of vendors that can use industry standard eNote registry
TORRANCE, Calif., Feb. 17, 2015 -- DocMagic, Inc., the leading provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions for the mortgage industry, announced that the firm has now completed its integration with the MERS® eRegistry, making it one of only a few industry vendors to integrate with the widely used system.
Launched in 2004, the MERS® eRegistry is the legal system of record that identifies the owner or holder (Controller) and custodian (Location) for registered eNotes and provides greater liquidity, transferability and security for lenders, according to MERSCORP Holdings, Inc. It was created in response to demand by the mortgage industry for a system to satisfy certain safe harbor requirements under the Uniform Electronic Transactions Act (UETA) from 1999, and the Electronic Signatures in Global and National Commerce Act (E-SIGN) from 2000.
There appears to be a movement afoot to adopt electronic transactions, including electronic signatures, in mortgage lending transactions. Pursuant to Bulletin Number 2012-11, Freddie Mac announced recently, among other things, that federally-regulated sellers of loans to Freddie Mac may electronically deliver initial disclosure documents in the loan origination process. In addition, Freddie Mac announced that electronic signatures would be accepted if signatures are required on any of the initial disclosure documents.
The initial loan origination documents that are eligible for Electronic Transactions (defined below) under Freddie Mac’s guidelines are as follows: