Continuing our series of commonly asked questions at closing, we asked Houston-based Attorney Nick Stevens for his insght on this question:
Nick, when is the deadline for lenders to switch to the new interactive URLA Form 1003?
Fannie Mae and Freddie Mac announced the redesigned uniform residential loan application (URLA Form 1003) in August of 2016. Since that time, the agencies have delayed implementation several times. Finally, the 1003 is ready for use. Starting January 1, 2021 all lenders may begin to submit the redesigned loan application; however, on March 1, 2021 all lenders are required to submit using the redesigned 1003 from this point onward.
What about loan applications that are received prior to March 1, 2021, but with loans still in the pipeline?
Fannie Mae and Freddie Mac will continue to process 1003s received prior to the March 1, 2021 mandate on the old form if that is how the 1003 was initially submitted. If a pipeline loan was submitted prior to the March 1, 2021 mandate, the submitted 1003 may remain in the original format and the lender may complete the loan using the older format.
However, March 1, 2022 is the retirement date for the old 1003 format even for 1003s received prior to March 1, 2021. Effective March 1, 2022, old 1003 forms will not be accepted by the agencies.