Thread Options
#2250391 - 03/11/21 03:39 PM NEW URLA WILL YOU OCCUPY
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,280
Declarations A. Will you occupy the property as your primary residence?

If YES, have you had an ownership interest in another property in the last three years?
2) type of property
3) how did you hold title

Borrowers (and me too) confused on use of the word in bold.
Does this only apply if the borrower owns more than one property or is this supposed to take the place of the same questions on the old 1003 which means the questions pertain to the collateral property?

There's nothing in the UMDP instructions that speak to this clearly nor have I found anything else. Thanks in advance.

Return to Top
Lending Compliance
#2250402 - 03/11/21 04:45 PM Re: NEW URLA WILL YOU OCCUPY Truffle Royale
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 76,979
Galveston, TX
It is any residential property, is it not. I just base that on the possible answers:

If YES, complete (1) and (2) below:

(1) What type of property did you own: primary residence (PR), FHA secondary residence (SR), second home (SH),
or investment property (IP)?

(2) How did you hold title to the property: by yourself (S), jointly with yourspouse (SP), or jointly with another person (O)?
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2250420 - 03/11/21 06:41 PM Re: NEW URLA WILL YOU OCCUPY Truffle Royale
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,280
It was the if/then part that was throwing me off.
As someone who prides herself on proper use of the English language, the use of 'another' means just that.
Answering yes to the collateral property will be my primary residence has nothing to do with 'another' property.

But your answer is likely the right one given who wrote the new URLA.

Thanks, Randy.

Return to Top
#2250421 - 03/11/21 06:46 PM Re: NEW URLA WILL YOU OCCUPY Truffle Royale
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 76,979
Galveston, TX
I guess I just do not see what is confusing.

5a. About this Property and Your Money for this Loan

A. Will you occupy the property as your primary residence?

If you answer Yes you go on to other questions. Seems pretty straight forward to me.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2250674 - 03/16/21 05:52 PM Re: NEW URLA WILL YOU OCCUPY Truffle Royale
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,280
That part is straightforward. My question has to do with the questions that follow.
The old 1003 asked if you had an ownership interest in A property. that lead applicants to say yes on a refi and list their primary residence and how they owned it.
The new URLA states ANOTHER property.
I'm seeing applications completed in the same manner as on the old 1003. But I'm also seeing applications for refinances of primary where the ANOTHER is marked yes and investment. So which is right?

Return to Top
#2250679 - 03/16/21 06:12 PM Re: NEW URLA WILL YOU OCCUPY Truffle Royale
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 76,979
Galveston, TX
That is why they changed it - the old series of questions on the old 1003 made no sense.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2261286 - 10/19/21 09:39 PM Re: NEW URLA WILL YOU OCCUPY Truffle Royale
TrTillman Offline
New Poster
Joined: Jul 2021
Posts: 1
Chiming in late, but I'm being asked the same question by our QC manager and figured I'd put forth the citation. Based on the UMDP instructions on FNMA's site, I'm in agreement with Randy.

The new forms clarify the question in order to determine whether or not the borrower is first time home buyer. If the borrower only owns a primary residence and is refinancing that property, the answer to "Have you had ownership interest in another property in the last three years?" would be a "No" and that's the end of the questions for declaration question A. Here's the explanation for the declaration question from the "Instructions for Completing the URLA" guide found on FNMA's site:

These questions are asked to determine whether the Borrower is a first-time homebuyer. The first-time homebuyer designation is applicable only for primary residence purchases, but 5a.A must be completed for both purchases and refinances.
▪ If you answer “YES” to the first question, “Will you occupy the property as your primary residence?” you must answer the second question.
▪ If you answer “YES” to the second question, “Have you had an ownership interest in another property in the last three years?” you must answer questions A (1) and A (2).
▪ If you answer “NO” to the first question, “Will you occupy the property as your primary residence?” continue on to question 5a.B.

Return to Top

Moderator:  Andy_Z