Pub. 4 2016 Issue 3

Issue 3. 2016 7 in the course of the loan process and filing it away correctly, espe- cially in the cases where paper copies are used, could get trickier. Secondly, the existing URLA has been around for so long that it is familiar to bankers and is already a firm part of most banks’ lending platforms, so swapping it out with a brand-new form could constitute a major and potentially expensive undertaking, depending on a bank’s particular set-up and costs. (Fortunately, the GSEs are providing a “GMI addendum” that can be tacked onto the old URLA instead of using the new URLA for the early part of 2018, but presumably a full conversion over to the new URLA will be required at some point.) Additionally, although a “final” version of the new form has been put out there, it could be up for a few more tweaks anyway—the CFPB has yet to finish looking at it to ensure it qualifies for “safe harbor” as valid application under Regu- lation B, and the automated underwriting system with which the new URLA is supposed to function was not expected to be available until late last month. Although the new URLA should be a major improvement once it’s fully up and running, it’s safe to say that the form is nowhere near “ready to rock” yet. The form still needs to be aligned with the GSEs’ automated underwriting and HM- DA’s expanded 2018 data collection requirements, and use of the form at this point likely would result in an over-col- lection of government monitoring information, which runs the risk of violating both Regulation B (ECOA) and Regu- lation C (HMDA) as they are currently written. Therefore, it’s best to hold off on using the new URLA to originate mortgage loans for the time being. Nevertheless, with all the other big regulatory chang- es looming on the horizon, financial institutions are encouraged to check out the new form and see how it can best fit into their existing lending platforms. The GSEs have yet to roll out an official launch schedule and training solutions for the form, but those should be arriving in the near future, so be sure to look out for them. A wonderful FAQ, a summary, copies of URLA forms and addenda and samples of filled-out URLAs for purchase and refinance transactions can be found on the GSEs’ website at https://www.fanniemae.com/singlefamily/uniform-residen- tial-loan-application . (A Spanish version of the form should be available soon as well, if not already.) I would highly encourage a visit to that page for some of the finer details on the new form, and recommend sticking by Com- pliance Alliance for any and all updates regarding the GSEs’ implementation of the new URLA in 2018 and beyond! n James McGuire has worked as an attorney and legal researcher in the financial industry since 2010. After graduating from the University of Minnesota Law School in 2007, he served as Assistant Gener- al Counsel for the Texas Attorney General in the Open Records Division, and later worked as a solo practitioner in the Austin area. Prior to joining Compliance Alliance in July of 2015, James assisted a major mortgaging servicer with the OCC’s independent foreclosure audit and was an SEC filing researcher for a major financial and legal research firm. He has extensive first-hand experience with open records, mortgage servicing, consumer law and securities regulation. Compliance Alliance offers a wide variety of compliance support resources. To learn how to put them to work for your bank, call us at (888) 353-3933 or visit compliancealliance.com.