Are we required to use the revised Uniform Residential Loan Application (URLA) instead of the old form 1003, regardless of whether the mortgage loan is being sold on the secondary market or being held in-house? We like the layout of the old form better, so we would like to continue using it for in-house mortgage applications. Additionally, does each borrower need to fill out the URLA for joint applications?

No, you are not required to use the revised URLA for mortgages you hold in-house, unless you eventually intend to sell those loans to Fannie Mae or Freddie Mac or another secondary market purchaser that requires use of the revised URLA. Additionally, there are a few different options for completing the URLA for joint applications according to Fannie and Freddie’s URLA instructions.

According to a mandate published by Fannie and Freddie, they will not accept any new loan applications using the legacy Form 1003 submitted after May 1, 2021. However, if you are not selling a loan to Fannie or Freddie, or to another secondary market purchaser requiring use of the revised URLA, you may choose to continue using the legacy URLA (assuming that your bank has not made any changes that would violate Regulation B’s requirements for requests for information about race, color, religion, national origin, or sex). As the CFPB acknowledged when reviewing the revised URLA form, “a creditor’s use of the final redesigned URLA is not required under Regulation B.”

As for joint applicants completing an URLA, according to instructions released by Fannie and Freddie, two borrowers with joint financial information may complete the URLA plus the URLA—Additional Borrower forms (both available here) and report the assets, liabilities, and real estate for the additional borrower on the URLA. Alternatively, they may complete a separate URLA for each borrower. In that case, the borrowers need not report their joint assets, liabilities, and real estate on both URLAs. However, when borrowers are not collaborating when completing the loan application, they may report joint assets, liabilities, and real estate on each URLA.

For two borrowers with separate financial information, the applicants may either complete the URLA and the URLA—Additional Borrower forms and report the assets, liabilities, and real estate for the additional borrower on the URLA or complete a separate URLA for each borrower. If there are three or more borrowers, they may use any combination of the URLA and URLA—Additional Borrower forms.

For resources related to our guidance, please see:

Fannie Mae and Freddie Mac, Uniform Residential Loan Application March 1 Mandate (February 16, 2021) (“The mandate for implementing the redesigned URLA is March 1, 2021. The GSEs fully expect that new loan applications started on or after March 1 will be submitted using the redesigned form and DU MISMO v3.4/LPA v5.0.06 file formats. The GSEs have not described how a lender should determine the ‘loan application start date.’ However, the expectation is that the lender will apply its chosen definition consistently. . . . Effective May 1, 2021, any new loan submitted using legacy formats will no longer be accepted. . . .”)

Fannie Mae and Freddie Mac, Reminder: Starting May 1, No Legacy URLA Loan Submissions Accepted (April 20, 2021) (“March 1, 2021, marked the industry-wide mandate to begin using the redesigned Uniform Residential Loan Application (URLA/Fannie Mae Form 1003/Freddie Mac Form 65). All new loan applications started on or after March 1, 2021 must use the redesigned URLA and updated automated underwriting system (AUS) specifications based on MISMO v3.4. Loans started prior to March 1 may remain in the format with which they were started. . . . Effective May 1, 2021, the GSE AUSs will no longer accept new loans submitted using legacy formats.”)

CFPB Notice, Final Redesigned Uniform Residential Loan Application Status Under Regulation B, 82 Fed. Reg. 55810, 55811–12 (November 24, 2017) (“On November 17, 2017, the Enterprises, under the conservatorship of the FHFA, issued an update to the redesigned URLA that included, among other modifications, an additional question concerning an applicant’s language preference (final redesigned URLA). . . . A creditor’s use of the final redesigned URLA is not required under Regulation B.”)

Fannie Mae and Freddie Mac, Instructions for Completing the Uniform Residential Loan Application, pages 1–2 (“The URLA and the URLA – Additional Borrower are used together to collect information for two Borrowers who have joint assets, liabilities, and/or real estate information. The URLA and URLA-Additional Borrower can also be used for Borrowers who do not have joint information but wish to combine their information on the URLA for ease of use. The following are examples of how to use the URLA and URLA-Additional Borrower:

One Borrower: Complete the URLA.

Two Borrowers with joint financial information:

Complete the URLA plus the URLA-Additional Borrower. Report the assets, liabilities, and real estate for the additional Borrower on the URLA; OR

Complete a separate URLA for each Borrower.

Report joint assets, liabilities, and real estate on only one URLA; you do not need to duplicate them on more than one URLA; OR

In cases where borrowers are not collaborating when completing the loan application, joint assets, liabilities, and real estate may be duplicated on each URLA

Two Borrowers with separate financial information

Complete the URLA plus the URLA-Additional Borrower. Report the assets, liabilities, and real estate for the additional Borrower on the URLA; OR

Complete a separate URLA for each Borrower.

Three or more Borrowers – Use any combination of URLA and URLA-Additional Borrower forms in accordance with the above examples.”)