URLA date change: a 2-minute guide
As we all know, the changes to URLA were intended to go into effect before the end of 2020, but due to recent developments and energy focused on dealing with COVID-19 the implementation dates have been moved out. There are many alterations coming to URLA but there are a key few points that lenders should understand as soon as possible, to ensure readiness when the transition time comes.
Here’s your 2-minute guide to the revised URLA:
What is the new official timeline for the revised URLA?
On April 14th, 2020, the GSEs published a revised timeline for the implementation of the new URLA. The new date for the required use of URLA is March 1, 2021.
Here are the key dates lenders should know:
August 1, 2020: Pre-approved lenders will begin a limited production pilot of the new URLA.
January 1, 2021: All lenders can begin using the new URLA. This is officially called the Open Use Period.
March 1, 2021: By this date, all lenders are required to use the redesigned URLA.
It’s a good idea to monitor the GSEs’ websites for any future updates to the above timeline. Roostify will continue to communicate any changes, should they arise.
What are the biggest changes to the URLA?
The new URLA is designed to reflect changes in the way the mortgage industry operates as well as the evolution of borrower expectations. The new version is not only an update to the physical version of URLA, but also the corresponding dataset used by technology vendors.
Important changes include:
Modernized borrower information: Added fields for mobile phone numbers and email addresses. Borrowers may also need to include additional information about their current housing expenses.
HMDA demographic data: Designed with Home Mortgage Disclosure Act compliance built-in. Borrowers can supply this information while filling out their application. This eliminated the demographic information addendum, saving borrowers from the headache of filling out another form and making compliance easier for lenders.
Homeownership education: Lenders must include information about whether or not borrowers were made aware of homeownership education and counseling services.
What does the new URLA mean for lenders using outdated customer engagement methods?
Lenders using static web contact forms will likely need to make changes to their technology stack to comply with the redesigned URLA. Fortunately, this means lenders can benefit from modern innovations in mortgage technology.
Compliant DLPs that utilize the new URLA dataset can offer a more modern and delightful customer experience. In some cases, borrowers may be able to begin their loan application and create a pre-approval letter completely on their own. This leaves loan officers free to process and close loans more efficiently.
That covers all of the basic information you need to know about the new URLA. For more details about these changes, check out our blog post.