New URLA for a New Year!

Why was the URLA updated? “They’ve been working for a number of years now to enhance the data quality, consistency, and the clarity of data they are capturing within the data set. In order to do that they had to update the document that we all use to capture that information,” commented Molly Stull, Compliance Consultant with Brode Consulting Services, Inc., in a webinar for Credit Union Webinar Network.

What are the changes? The redesigned document features a more consumer-friendly look, less industry jargon, plain language, clear instructions, separated information to be completed by the borrower(s) and lender, similar look to Loan Estimate and Closing Disclosure, greater efficiency and accuracy, outdated fields were removed, and new fields and options were added. A “Does not apply” box was also added to each subsection that can be checked when applicable, as well as the ability to collapse some sections, or expand to add extra fields.

The updated URLA has five sections, each as a PDF file, that include:

Section 1: Borrower Information. This required nine-page section contains a new flowing layout that has added white space to accommodate signatures or additional information if needed.

The new additions comprise of extra space to add more than one phone number, Email address(s), address unit number, Non-permanent Resident Alien citizenship option, added military and demographic information sections, unmarried marital status definition was expanded, and much more.

Section 2: Lender Loan Information. This section is required to be filled out by the lender. A Community Property State section has been inserted and the Qualifying the Borrower section is now on one page, making it easier to read.

Section 3: Continuation Sheet. This new page provides space for additional information such as state-specific disclosures or borrower signatures if required by your credit union.

Section 4: Additional Borrower. This section can be completed based upon the number of applicants and the financial relationship between multiple applicants, which include:

• Two applicants with joint financial information
• Two applicants with separate financial information
• More than two applicants
• Married couple with single parent as co-borrower n
• Single individual with married parents as co-borrowers

Section 5: Unmarried Addendum. According to Stull, “The Unmarried Addendum is only completed when a borrower selected ‘Unmarried’ in Section 1 and the information collected is necessary to determine how state property laws directly or indirectly affect how creditworthiness applies, including ensuring a clear title.”

In Stull’s webinar she broke down each of the five primary sections in detail and how to complete them. She also reviewed things to think about when implementing the new URLA at your credit union, including interdependencies, your policies and procedures, your testing plan, how the document will be completed, and how you are going to train your employees. Contact us to purchase New URLA for a New Year! Prepare Now for a Smooth Transition.