For the prior segment of this video covering the entry of information concerning the purpose of the loan and the property to be purchased or refinanced, click here.

Final sections of the Uniform Residential Loan Application (URLA)

Editor’s note – This video addresses the redesigned Uniform Residential Loan Application (URLA) which was scheduled to become mandatory February 2020. Implementation of the redesigned URLA has been pushed back to March 2021 in response to the COVID-19 pandemic.

The URLA presently in use and the redesigned URLA are based on the same fundamentals, though feature different sequencing and some distinctions in content.

After the borrower enters information about the purpose of the loan and the property they intend to purchase or refinance with the funds, the next component of the Uniform Residential Loan Application (URLA) is titled Section 5: Declarations.

Here, the borrower answers specific questions about:

  • their past financial history;
  • the property involved in the transaction; and
  • the funding sought.

The borrower is to answer these questions truthfully and honestly.

In Section 6: Acknowledgments and Agreements, the borrower learns of their legal obligations which are crated when they sign and submit the application.

Next, the borrower and any co-borrower(s) sign the application to acknowledge and agree to the numerous conditions.

These conditions and acknowledgments include:

  • the property will be occupied as represented in the application;
  • the borrower will amend the application and resubmit it to the lender if the facts originally stated substantially change;
  • the lender may report information about the borrower’s account to credit bureaus; and
  • the lender is authorized to verify all aspects of the mortgage application as represented by the buyer.

On the very last page, the borrower completes Section 7: Demographic Information which concerns the borrower’s ethnicity, sex and race.

This information is collected to ensure all mortgage applicants are treated fairly and that the housing needs of all communities and neighborhoods are being fulfilled.

The borrower may choose not to provide answers to some or all of the demographic questions – that’s not a problem. They only have to answer whatever they’re comfortable with.

Finally, the Uniform Residential Loan Application concludes with Section 8: Loan Originator Information, where identifying information concerning the loan originator is supplied.