During a document audit, it was brought to our attention that the “No. of Months” box in Section I of the Uniform Residential Loan Application has been formatted to show the Loan Term twice. While this may be applicable for balloon loans, in which case clients may wish to see the balloon period and the amortization period (e.g. 240/360), there is no compliance reason to present a non-balloon loan in the same format (e.g. 360/360). In addition, a review of the Practice Cases promulgated by FNMA shows that the Loan Term is displayed as a single number in all cases (e.g. 360). Consequently, for non-balloon loans, we will be changing the Loan Term section of our Cx4193 to match the format on the FNMA Practice Cases.
This change will go out immediately. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.