Some key government forms are changing this year, which will directly affect mortgage processing.
Kicking things off, the transition period is over and for the first time this century, originators must now use the new and improved Uniform Residential Loan Application (URLA).
The Internal Revenue Services and Social Security Administration have both updated key forms, as well. The IRS has released Form 4506-C to replace Form 4506-T, and it will be the only form accepted through the Income Verification Express Service (IVES) to provide tax transcripts to third parties such as mortgage lenders. There is also a revised Form SSA-89 (12-2020) providing authorization for the SSA to release Social Security Number (SSN) verification which is also used by most mortgage lenders.
The Federal Housing Administration (FHA) has also revised its Form HUD 92900-A, Addendum to the URLA, as part of a wider effort included in the Housing Finance Reform plan to provide clarity and certainty to its program participants while also managing risk to the Mutual Mortgage Insurance Fund. The optional use period for the updated HUD 92900-A ends soon, with required use beginning with case numbers assigned on and after March 22, 2021.
Loan originators should check with their compliance staff, or the correlating government agency website, to confirm effective dates for required usage of all revised government forms.
As we usher in a wave of updated documentation, AFR is here to support you with information and resources to ease the transition. Here are some links you may find useful:
- Freddie Mac Single-Family Uniform Residential Loan Application (URLA) and Uniform Loan Application Dataset (ULAD)
- Fannie Mae Uniform Residential Loan Application (Form 1003)
- USDA LINC Training & Resource Library | Rural Development
- Fannie Mae Uniform Closing Dataset (UCD) Collection Solution
- Freddie Mac Uniform Closing Dataset (UCD)
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Tags: mortgage forms, URLA