Examples of URLA Changes Compare and Contrast Current and Redesigned - PowerPoint PPT Presentation

Freddie Mac Part II slides 19 to 28 Examples of URLA Changes Compare and Contrast Current and Redesigned Forms 1

URLA Redesign – 5 Flexible Modules • One-Borrower Modular Design Provides Maximum Flexibility URLA Lender These 2 components Loan used with every loan Borrower Information Information S These 3 components used as applicable Additional Borrower Unmarried Information Borrower S Continuation Addendum Sheet S “S” = Borrower Signs this form

Using the One-Borrower Design 1. Additional Borrower form is used when two borrowers share assets and liabilities 2. Asset, liability, and loan level information are requested only once — on the Borrower URLA 3. Additional borrower signs Borrower URLA

Key Features of the Redesigned URLA 1 3 2 4 1. One-borrower form design 2. Similar look as LE and CD 3. Can indicate entire sections are not 2 3 applicable 4 4. Most likely choices for asset, liability and income types are displayed for borrower to choose from 3 2 4

Current URLA Borrower Section ▪ Two-borrower format ▪ Small font, serif font ▪ Inconsistent field design No cell phone or Field not needed email fields for underwriting

Redesigned URLA Borrower Section One-borrower format Larger, sans serif font Clearer joint borrower information Updated contact fields Consistent and more granular data collection New question

Current Borrower Employment Section ▪ Cramped ▪ Current and previous employment mixed together ▪ Detailed employment income in separate section

Redesigned URLA Borrower Employment Section ▪ 3 separate sections provide easy-to-follow distinction between current and previous employment ▪ Income details provided in same section ▪ Clear self-employment data collection requirements ▪ Less detail necessary for previous employment ▪ Ability to indicate if data is not applicable

Current URLA Assets and Liabilities Section ▪ Combined assets and liabilities ▪ Limited space for additional information usually requires continuation sheets ▪ Additional annotations, references to other form sections, and calculations make this section especially prone to errors

Redesigned URLA Assets Sections Assets and Liabilities • are in separate sections for greater flexibility Asset “Pick Lists” • help borrowers know what assets to enter where Ability to add as • many assets as needed Ability to indicate a • borrower does not have additional assets