• Greggory B. Oberg, Esq.

New 1003 URLA Will Present Major Hurdles for Lenders in 2020


Big News: One of the great things about SCA is the range of issues we get to see, and the wealth of knowledge we get to tap into while working with dozens of clients on a monthly basis. Today, we'll share some important news about the new 1003 URLA.



By: Bill Dolan, CMB



SCA’s certified systems technology consultant, Mr. Lance McGrath, just returned from the Ellie Mae 2-day seminar held in Chicago last week. The focus of the program centered around the new 1003 Uniform Residential Loan Application (URLA) and Dataset (ULAD) and as Lance stated, “it was incredibly eye opening!”


Though Fannie Mae and Freddie Mac decided to postpone the initial optional use of the redesigned 1003 form as well as the initial start date of February 1, 2020, Ellie Mae’s position however is to continue working under the assertion, that until the GSEs (who are also working in conjunction with FHA, VA and USDA government agencies to integrate their requirements as well) provide a concrete implementation date, Ellie Mae will continue to work to fully support the new URLA changes and provide best practices for lenders to meet the new requirements in a timely manner.


The changes being made, from what our systems technology consultants learned promise to improve efficiency, transparency and certainty for both lenders and borrowers alike. It will however be as challenging as TRID was, when first implemented by lenders, MLOs, systems administrators, trainers as well as their borrowers ….and that is no exaggeration!


During the training sessions, Ellie Mae stated that approximately 454 new fields will be added to the Ellie Mae LOS platform to support the revised 1003 not to mention existing fields that may need to be altered as well. With that, changes to existing business rules that were initially built (if you use rules to guarantee a complete application by your MLO), templates, custom print and input forms created, borrowers utilizing your Point-of-Sale (POS) systems and the LOs performing either a pre-qual or taking a loan application will all require significant re-training.


You should be aware that the multiple input forms you may be utilizing today and that are currently being supported by Ellie Mae may be eliminated altogether and may no longer be supported after the implementation date.


Redesigning the workflow along with extensive testing will be required so “end users” will have sufficient preparation time for training to ensure a seamless transition as well as a positive up-front borrower experience through the entire mortgage process (this may take longer to learn and master in order to eventually become more “user friendly”).


These major changes will be just as time consuming as TRID was to your mortgage lending and operations units and project planning and decision making will be required prior to building out the system, testing, training and going “live”. It may also require multiple phases as new settings within the system for URLA are turned on using the 2020 requirements while 2009 settings are required to be turned off. Furthermore, some phases may also be deployed after the implementation date and systems build.


SCA has begun scheduling on-site meetings with community financial institutions and non- depositories who are currently utilizing not only the Ellie Mae Encompass system but any/all other LOS/POS platforms that the 1003 will reside on. This also includes those of you who are also in the decision-making process of implementing a new loan origination platform.


Initial meetings will consist of a thorough understanding of the changes outlined in the Scope of Work to meet these new requirements along with the creation of a project plan required to ensure a smooth and seamless transition for both a positive Lender and Borrower experience.


For more information, please contact Bill Dolan, CMB, Director of Business Development at (781) 356-2772 or email at WDolan@scapartnering.com




Spillane Consulting Associates has served the residential mortgage lending business since 1991. We have specialized in mortgage banking consulting services and provided quality control reviews, risk management and process consulting and employee training to credit unions, community banks and non-depository institutions. We are a thought leader on the strategic growth of residential mortgage lending. You can learn more by visiting our website, or scheduling a meeting with me or one of my colleagues.


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**These are our opinions. We're not authorized, or willing, to express those of others.**
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