Revised Uniform Residential Loan Application (Form 1003)

By: Jennifer Kramer

In July of 2005, Fannie Mae and Freddie Mac revised the Uniform Residential Loan Application (Fannie Mae Form 1003/Freddie Mac Form 65) to make some technical and substantive changes that accommodate advances in underwriting and make the form more user-friendly.

The new form incorporates several changes. The instructions on the form have been amended to recognize that applicable law in some states.

In 2004, the Federal Reserve Board clarified its ruling requiring credit applicants to indicate whether the application is for joint or individual credit. The revised form includes signature lines for the applicant to indicate whether the application is for joint or individual credit.

The attestation was revised to make it clearer to borrowers that they are allowing access to certain information in connection with the application and the resulting loan. The new form clarifies the authorization with respect to the lender’s responsibility to include information on the borrower’s sex, race, and ethnicity on the basis of appearance and surname if the borrower declines to furnish this information.

Conforming changes have been made to Form 1003s, the Spanish language version of the Uniform Residential Loan Application including substitutions of some Spanish words to provide a translation of the English form that more accurately reflects current usage. Because Form 1003A (Statement of Assets and Liabilities) and its Spanish equivalent, Form 1003As, reference non-applicant spouses, these forms have also been amended to recognize the assets of all non-applicants who share community property with the applicant.

At this time Fannie Mae is also revising its instructions for use of Form 1003. These instructions provide guidance to lenders using this form in connection with loans to be sold to Fannie Mae. Instructions are being clarified with respect to non-citizen borrowers, first time homebuyers, and the collection of race and ethnicity information.

These new forms may be used by lenders immediately, but are required for loans with an application date on or after January 1, 2006. The current version of the Uniform Residential Loan Application (Form 1003) will remain available through December 31, 2005.

A copy of the revised instructions and the revised Form 1003, 1003A, 1003s and 1003As are available at www.efanniemae.com in Portable Document Format (PDF) file.

Contact Nichols, Cauley & Associates by Email, phone, or online form with your questions.

Site visitors should keep in mind that the content is generally designed to be of general applicability. Particular state laws, regulations and special contractual provisions can greatly impact rights, responsibilities and legal obligations. Only a competent attorney, accountant or other professional looking at all the pertinent facts and circumstances of a particular situation can provide definitive guidance for you. Please refer to our important legal discalimer which can be accessed from the bottom of any BankAudit.net webpage.