The Federal Housing Finance Agency (FHFA) released redesigned Uniform Residential Loan Application (URLA) forms that take into account CUNA’s concerns brought forth in a July visit with the agency.
CUNA advocated for removing the URLA requirement that lenders inquire about the language preference of borrowers, citing several compliance and legal concerns. Fifty-five members of Congress sent a letter to the FHFA, which oversees Fannie Mae and Freddie Mac, with similar concerns.
With Tuesday’s release of the new loan application, credit unions and other lenders will have time to appropriately update their loan origination systems, CUNA noted.
Said FHFA Director Mel Watt: "Although final implementation of the new loan application is still more than a year away, and the application must still undergo ‘safe harbor’ review by the Consumer Financial Protection Bureau, we anticipate that publication of the redesigned form now will give the industry ample time to analyze and prepare for its use in 2018.”