As previously announced, Fannie Mae and Freddie Mac published a notice on October 23, 2019 concerning updates to the Redesigned 1003, available here: https://www.fanniemae.com/content/notification/notification-urla-announcement-october-2019. Our copy of the Redesigned 1003 Uniform Residential Loan Application, Cx20667, which is currently only in use for testing, will be modified to reflect the revisions announced. In particular, there are several text and formatting updates that will be made throughout the document, including (but not limited to) the following:
a. “Effective Date TBD” will be added to all pages.
(From the announcement: “The GSEs are on track to … announce the updated implementation timeline and mandate before the end of the year.”)
b. The “Military Service” area will be moved from Section 1 to its own, new section, located just before the Demographic Information.
i. The new section will be Section 7.
ii. Previous “Section 7: Demographic Information” will be renumbered to Section 8.
iii. Previous “Section 8: Loan Originator Information” will be renumbered to Section 9.
c. The “Language Preference” area of Section 1 and Section “L5. Homeownership Education and Housing Counseling” will be removed entirely.
i. At some point in the future, the GSEs might create an additional, optional form to gather this information.
In addition, several field modifications will be made, as follows:
a. Two sets of fields that already exist in ConformX will be added to the document.
i. “Employer Address: Country”
ii. “Real Estate Owned: Country”
b. One set of fields will need to be created and then added to the document.
i. “Employer Address: Unit”
c. The uses of two fields already on the document will be modified.
i. “Real Estate Owned: Status” is already used to populate the REO “Status” column (Sold, Pending Sale, or Retained). It will also be used to populate the new REO “Intended Occupancy” column (Investment, Primary Residence, Second Home, Other).
ii. “FHA Secondary Residence” has been moved from the “Occupancy” options to its own checkbox.
d. The types for “2b. Other Assets You Have” will be expanded to support “Lot Equity” and “Relocation Funds” as additional options.
i. The imports for all fields in both Sections 2a and 2b will be updated to support these two new options. (The field and import updates will not be made until the MISMO enumerations for the new types are known.)
e. The Sources for Section 4d will be expanded to support “Lender” as an additional option. (This will affect only the “Borrower Gift Source” fields.)
These updates to Cx20667 will be made available for testing as they are completed over the course of the next few weeks. If you have any questions or concerns, please contact Client Support at 1.800.497.3584.