The new required Uniform Residential Loan Application form is going to impact a lender’s entire workflow. Lenders need to consider some existing aspects of their current Encompass system as well look into the newer changes which along with the form in order to prepare themselves for a smooth transition into the new system.
The latest timeline for the implementation of URLA:
• August 1, 2020 – Limited Production Begins. GSEs refer to this period as the pilot period. This period is intended for a limited number of industry participants ideally aggregators and investors to work closely with the GSEs to ensure that using the new URLA is not going to have any unintended gaps or misses that may cause any concerns in the secondary market.
• January 1, 2021 – Open Production Begins. This will be the earliest date that any lender can start using the newly re-designed URLA application.
• March 1, 2021 – Mandate and Pipeline Transition Period Begins. All the news loans will be expected to use the re-designed URLA application from this date.
• March 1, 2022 – Retirement Date. The current version of the loan application will become obsolete and and GSEs will no longer accept loans on the previous format from this date.