Fannie Mae and Freddie Mac released a redesigned mortgage application form in October. The Uniform Residential Loan Application is a standardized form used by borrowers when applying for a mortgage. This is the first time in 20 years there has been a change to the standard mortgage application form.
Presently, no specific date for the mandatory use of the new URLA has been set. But the GSEs will publish an interactive fillable PDF version of the new URLA in early 2020.
The new form explicitly references real estate sales contracts and requires the borrower to submit to the lender before closing any changes or new information including “providing any updated/supplemental real estate sales contract.” Additionally, the new form demands the borrower state that the terms and conditions of any real estate sales contract are true the best of their knowledge and that, “I have not entered into any other agreement, written or oral, in connection with this real estate transaction.”
The new form also requires a more explicit statement as to the borrower’s intended occupancy. For single family property the borrower will indicate whether their intended occupancy is “Investment, Primary Residence, Second Home” or “Other.”