Fannie Mae and Freddie Mac are delaying the mandatory use of their new Uniform Residential Loan Application to an unspecified future date.
The delay follows a Federal Housing Finance Agency directive to the government-sponsored enterprises to make certain changes to the new URLA form. As a result, the GSEs are no longer requiring lenders to use the new URLA by Feb. 1, 2020.
Among the requested changes is the removal of the “Language Preference Question.” ICBA and other groups previously advocated this question not be required as it could create consumer expectations that can’t be met, or legal issues for lenders unable to provide language services in the borrower’s preferred language.
Earlier this summer, the FHFA directed Fannie and Freddie to postpone the optional-use period for the redesigned URLA and automated underwriting system implementations, which was supposed to begin in July.