For the prior segment of this video introducing the borrower’s and transaction agent’s use of the Uniform Residential Loan Application (URLA) to apply for a mortgage, click here.

This video conforms to the redesigned 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.

Mechanics of the Uniform Residential Loan Application (URLA)

The first component of the Uniform Residential Loan Application (URLA) is titled Section 1: Borrower Information.

This section calls for the borrower to enter their personal identifying information and information concerning income from employment and other sources the borrower intends to use to qualify for the mortgage. [See RPI Form 202 (FNMA 1003)]

Information identifying the buyer, such as their name, alternate names, social security number and date of birth is entered towards the top. Also noted is their citizenship status.

Space is left to insert any co-borrower information if the income, assets and liabilities of a co-borrower are to be considered for mortgage qualification purposes.

Thus, the borrower is asked to indicate whether they are applying for:

  • individual credit; or
  • joint credit with a co-borrower.

The marital status, number of dependents and contact information of the borrower are called for next.

This is followed by the borrower’s address and a question of whether they or a spouse served or are or currently serving in the US armed forces.

The bottom of Section One: Borrower Information asks the borrower to indicate their language preference to determine if communications are available in the preferred language. The response to this question will not negatively affect the borrower’s mortgage application, and does not guarantee the lender will be able to communicate and provide documents in the preferred language.

The borrower’s, and any co-borrower’s, employment information necessary to identify their source of income is entered in the next section of the loan application.

Employment information includes:

  • the employment currently held by the buyer;
  • the buyer’s job title; and
  • years spent at that specific job and within that profession.

If the borrower is self-employed, they indicate this by checking the self-employed box.

Additional space is provided for the borrower to enter further or previous employment information, if applicable. They may also note whether they receive income from other sources.