The document discusses the redesigned Uniform Residential Loan Application (URLA) form and the Uniform Mortgage Data Program (UMDP) implemented by Fannie Mae and Freddie Mac. It describes how the UMDP standardizes loan data to improve efficiency and transparency. It also summarizes the components of the redesigned URLA, including additional forms and sections for borrower information, property details, loan terms, and demographic data collection. The redesign aims to remove ambiguities, provide consistent definitions, and ensure loan eligibility for purchase by the GSEs.

1. Module 2: Why the GSEs Redesigned the
URLA

2. 2.1 The Government Sponsored Enterprises
Background of the GSEs
 Initially, the housing GSEs (Fannie Mae and Freddie Mac) were separate
entities operating under the supervision of different federal agencies.
 Although they are still separate entities, currently they are supervised by
one independent federal agency—the Federal Housing Finance Agency
(FHFA).
 FHFA – The Regulator of the GSEs
 The Federal Housing Finance Agency (FHFA) was created on July 30, 2008, as
part of the Housing and Economic Recovery Act of 2008.
 The Housing and Economic Recovery Act of 2008 (commonly referred to as
HERA) was designed primarily to address the subprime mortgage crisis. [Pub.L.
110–289].

3. 2.2 Uniform Mortgage Data Program (UMDP)
Purpose of the UMDP
 What UMDP Does for Mortgage Lenders
 Creates operational efficiencies.
 Improves quality, consistency, and accuracy of loan, borrower, and property data
throughout the mortgage life cycle.
 Reduces ambiguities in data names/definitions through the specific MISMO® standard
associated with each dataset, while providing consistency in business terms and loan
data.
 Offers more certainty regarding the eligibility of a loan for sale in the secondary market to
the GSEs.
 Promotes transparency, better controls, and trustworthy data exchanges between
business partners.

4. 2.2 Uniform Mortgage Data Program (UMDP)
(continued)
Components of the UMDP
 UAD
 Uniform Appraisal Dataset (UAD) standardized the data elements included in appraisal
forms that must be submitted electronically to the GSEs and standardized the definitions
and responses for a key subset of fields.
 ULDD
 Uniform Loan Delivery Dataset (ULDD) is a dataset developed by the GSEs to define the
common requirements for data submitted at loan delivery based on loan type, loan
feature or other business requirements.
 UCD
 Uniform Closing Dataset (UCD) is a standardized industry dataset that provides
standardized data points, enumerations, and definitions for fields on the CFPB’s Closing
Disclosure.

5. 2.2 Uniform Mortgage Data Program (UMDP)
(continued)
Components of the UMDP
 ULAD
 The GSEs developed the Uniform Loan Application Dataset (ULAD), which is the
corresponding dataset for the redesigned Uniform Residential Loan Application (URLA)
(Fannie Mae Form 1003 or Freddie Mac Form 65).
 MISMO
 The Mortgage Industry Standards Maintenance Organization Reference Model (MISMO)
facilitates the GSEs efforts to develop and implement uniform data standards for single-
family mortgage loans, which result in consistent data definitions, enumerations, and
mapping.

6. 2.2 Uniform Mortgage Data Program (UMDP)
(continued)
From Loan Application to Loan Acquisition
 1. Loan Origination
 2. Underwriting
 3. Closing
 4. Acquisition

7. 2.3 The Revised URLA and the New ULAD
Revisions to the URLA Form and Corresponding ULAD
 Redesigned format
 Remove fields
 New and updated fields
 Clearer instructions
 Revised government monitoring information
Components of the Redesigned Uniform Residential Loan
Application Published by the GSEs
 URLA – Borrower Information
 URLA – Additional Borrower
 URLA – Unmarried Addendum
 URLA – Lender Loan Information
 URLA – Continuation Sheet

8. 2.4 Components of the Redesigned URLA
Uniform Residential Loan Application
 Section 1, Borrower Information. Collects the borrower’s personal information,
income and employer.
 Section 2, Financial Information – Assets and Liabilities. Collects information about
the borrower’s financial assets, personal financial obligations and debts the
borrower owes.
 Section 3, Financial Information – Real Estate. Collects information about property
the borrower own along with debts and expenses related to the property.
 Section 4, Loan and Property Information. Collects information about the loan
purpose and the property the borrower is buying or refinancing.
 Section 5, Declarations. Asks specific questions about the property, how the
property will be financed, and the borrower’s past financial history.

9. 2.4 Components of the Redesigned URLA (continued)
Uniform Residential Loan Application
 Section 6, Acknowledgments and Agreements. Informs the borrower of the
borrower’s legal obligations related to the mortgage application, and provides the
borrower’s acknowledgment that certain information will be obtained, used, and
shared.
 Section 7, Demographic Information. Requests information the lender is required
by law to ask the borrower.
 Section 8, Loan Originator Information. Provides the borrower with information
about the loan originator.

10. 2.4 Components of the Redesigned URLA (continued)
URLA – Additional Borrower
 Section 1, Borrower Information.
 Section 5, Declarations.
 Section 6, Acknowledgments and Agreements.
 Section 7, Demographic Information.
 Section 8, Loan Originator Information.
URLA – Unmarried Addendum
 The Uniform Residential Loan Application - Unmarried Addendum is used for
transactions in which a person is unmarried but has real property rights similar to
those of a legal spouse; i.e., civil union, domestic partnership, or registered
reciprocal beneficiary relationship.

11. 2.4 Components of the Redesigned URLA (continued)
URLA – Lender Loan Information
 Section 1, Property and Loan Information. Describes the transaction, whether it is
subject to community property laws, if the transaction is a refinance, and if the
loan will finance energy improvements.
 Section 2, Title Information. Collects the vesting information about the borrowers
and determines how title will be held.
 Section 3, Mortgage Loan Information. Describes the type of mortgage applied for
and the terms of the loan.
 Section 4, Qualifying the Borrower – Minimum Required Funds or Cash Back.
Gathers information about the sale and calculates the cash from/due to the
borrower.
 Section 5, Homeownership Education and Housing Counseling. This section is
included on the redesigned URLA to help promote awareness of counseling to
borrowers.

12. 2.4 Components of the Redesigned URLA (continued)
URLA – Continuation Sheet
 The Uniform Residential Loan Application – Continuation Sheet is used when a
borrower needs more space to complete the Uniform Residential Loan Application.
Demographic Information Addendum
 Because the redesigned URLA form is not yet available, the GSEs published the
Demographic Information Addendum to provide lenders the ability to collect the
new and expanded race and ethnicity disaggregated subcategories while still using
the current URLA dated 7/05 (revised 6/09).