How to gain more from operational risk management practices. Modern risk management technology solutions improve efficiency and provide greater visibility into risks. Today’s tools provide real-time visibility, action plans, enhanced reporting and business intelligence, and proactive notifications for operational risk. Real-time data empowers banks and financial services organizations to proactively manage risks and instantly detect and mitigate emerging issues. Click here to learn more.
GSEs delay URLA implementation
Fannie Mae and Freddie Mac have announced that the Federal Housing Finance Agency (FHFA) directed the GSEs Fannie Mae and Freddie Mac to state in June 2019 that the optional use period for the redesigned Uniform Residential Loan Application (URLA) and automated underwriting system (AUS) implementations would be postponed. FHFA has now directed the GSEs to make specific modifications to the URLA form. The deadlines for implementation of the URLA and AUS datasets will now be delayed further; the mandatory use of the redesigned form and data will no longer begin on February 1, 2020.
The changes to be made to the URLA form include:
- Removal of the language preference question in section 1a and the homeownership education and housing counseling question in section L5. A voluntary consumer information form, not part of the URLA, will be developed to collect this information.
- In the Borrower Information, Section 6: Acknowledgments and Agreements, the statement on "Use and Sharing of Information" will be revised to address specific uses of borrower data.
- The Military Service question (Borrower Information, Section 1a.) will be moved to a new section adjacent to Section 7: Demographic Information.
- Minor edits for consistency and usability will be made throughout the URLA form.
The impact of those changes to the timeline will be assessed and more information about the new implementation dates will be disseminated as soon as it is available.