completing the uniform residential loan application (URLA)

Future URLA- Section L1

Property and Loan information - community property state- if property is in a community property state or any borrower lives in a community property state, the lender must so indicate. -Transaction detail- when the loan is for the conversion of contract for deed or land contract, a renovation loan or a construction loan -Refinance Type- Lender must identify it is a no cash-out, limited cash-out, or cash-out transaction. energy improvement- Lender must indicate if the loan will finance energy-related improvements or that the property is currently subject to an energy-related lien -Project Type- If property is a condominium, cooperative

co-signor

a credit applicant who does not have ownership interest in the security property as indicated on the title but signs the note.

Balloon mortgage

a loan that has level monthly payments that amortize over a stated term but provides for a lump-sum payment due at the end of an earlier specified term.

Section VIII :Declarations

bankruptcies, foreclosures, lawsuits, deliquency or defaults on any federal debt or other loan, child support, borrowed funds used for any part of a down payment, co-signers on any debts

Uniform Residential Loan Application (URLA)

(fannie Mae Form 1003 or Freddie MAc Form 65) a form that a lender requires a potential borrower to complete, allowing the lender to collect pertinent information about the borrower and the subject property.

Whats included in the redesigned URLA applications

- borrower information (8 pages with 8 sections) - Additional borrower (4 pages with 8 sections) - unmarried Addendum (1 page) - Lender Loan information ( 2 pages with 5 sections) - Continuation Sheet ( 1 page)

When is an application a complete application?

- submission of the borrower's financial information in anticipation of a credit decision relating to a federally-related mortgage loan

Section IX

Acknowledgment and Agreement; sign to acknowledge that they answered everything truthfully

Future URLA- Section 8

Loan Originator information; name address , email , phone, state license id #, NMLS Id #, signed and dated

future URLA - Section 4

Loan and Property information- loan amount, loan purpose, property address, number of units, occupancy and property value; any liens on property

Section VII: details of the transaction

MLo estimates what funds are required by the borrower at closing by adding and subtracting itmes such as purchase price, prepaid items, estimated closing costs. mortgage insurance, loan amount.

Future URLA- L2

Title information - names that title to the property will be held in or is currently held in - if title will be held sole ownership

co-borrower

a person who signs the promissory note along with the primary borrower and accept a joint obligation to repay the loan.

A __________ is a person who signs the promissory note along with the primary borrower and accepts a joint obligation to repay the loan. a. co-borrower b. co-signer

a. co-borrower

Which of the following are assets? select all correct responses a. stocks b. installment loans c. cash value of insurance policies d. credit cards e. automobiles

a. stocks c. cash value of insurance policies e. automobiles

future URLA- Section 5

declarations ; intention to occupy the property as primary residence - borrowers relationship to the seller - whether money is being borrowed for the transaction that has not been disclosed -outstanding judgments, bankruptcies

future URLA- Section 7

demographic information; subcategories added for ethnicity and race in compliance with the updates to HMDA

net worth

determined by subtracting liabilities from total assets

assets

items of value, such as cash on hand, savings or checking accounts, stocks, bonds, cash value of insurance policies, equity in real estate, retirement funds, automobiles, and personal property

Future URLA- l3

mortgage loan information - mortgage type- conventional, FHA, VA, USDA -terms of loan- note rate, loan term, if loan will be a first or subordinate lien -amortization type- lender must indicate if the loan is fixed, adjustable -loan features- if its interest only, negative amortization, balloon, prepayment penalty -proposed monthly payment- total of all housing expenses for the property

Future URLA- Section 1 section 1 :borrower information

name, addresses, citizenship, military, married

Future URLA- Section l4

qualifying the borrower-minimum required funds or cash bank, makes it clear the process to compute the amount of money that is due from (purchase) or due to the borrower (cash-out refinance)

The four Cs of underwriting

quality, quantity and durability of income are important -Credit history of the borrower, which demonstrates a borrower's diligence in repaying debt -Capacity to repay the loan, which includes income and employment history - Cash assets, which are available to close the mortgage. -Collateral, which evaluates the value of the home being purchased or refinanced.

Future URLA- Section 6

Acknowledgement and Agreements; acknowledge the truth, accuracy, and completeness of the application - that the appraisal is for the lender's use and that the lender has not made any representations as to the property, its value or its condition

Section L1: Property and Loan information of the new URLA is to be completed by the a. borrower b. lender

B. lender

Future URLA- Section l5

Homeownership education and housing counseling -designed for borrowers applying for loan programs that require homeownership education or housing counseling, including many FHA programs, Fannie Mae's HomeReady, state loan programs, and HOEPA loans.

Section X

Information for Government Monitoring Purposes in compliance with equal credit and equal housing laws. prohibits discrimination in granting credit based on age, sex, race, material status, color, religion ect.

loan processor

One who is responsible for verifying information contained in a prospective borrower's loan file and for coordinating aspects of the loan process.

When do you not consider installment loan debt?

When its ten or fewer monthly payments

Future URLA- Section 2

financial information- assets and liabilities ;

Future URLA- Section 3

financial information- real estate if you own anything

liabilities

financial obligations owed by a borrower; include any debts - any recurring monetary obligation that will not be canceled (e.g. monthly bills); child support or alimony