Fannie Mae and Freddie Mac Issue Implementation Guidance and Update for Upcoming Redesigned Uniform Residential Loan Application

Fannie Mae and Freddie Mac issued an Implementation Guidance and Update (Update) for the upcoming redesigned Uniform Residential Loan Application (URLA). The Update announces a new Demographic Information Addendum (Addendum). The Addendum allows lenders to collect the new and expanded race and ethnicity subcategories pursuant to HMDA, while utilizing the current URLA. Lenders may choose to utilize the Addendum in 2017 as part of their preparation to meet the January 1, 2018 mandate date. The Update also reminds lenders that the redesigned URLA should not be utilized until the date for use has been established. As the date for use has yet to be established, Fannie Mae and Freddie Mac have republished all URLA forms with an updated footer stating “Not for Current Use” (as opposed to the previous statement, “Effective 1/2018”). Furthermore, the Update references an official notice published by the CFPB that establishes a safe harbor under the Equal Credit Opportunity Act (with respect to use of the redesigned URLA).

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