The Redesigned URLA (Effective 1/2021) became required by Fannie Mae and Freddie Mac for all new applications dated March 1, 2021 and after. DocMagic’s URLA Resources page with all prior articles discussing the Redesigned URLA can be found on our website, Compliance Edge.
The Redesigned URLA consists of five component documents: Borrower Information, Lender Loan Information, Continuation Sheet, Unmarried Addendum, and Additional Borrower. The Additional Borrower document is an optional document that may be used for joint applicants. DocMagic provides three different options for joint borrowers, including two which customers can request as a configuration with our Customer Service teams.
Option 1 – Dynamic Borrower Information Document (default)
DocMagic’s default option for joint borrowers is to include the second joint borrower dynamically on the same Borrower Information document as the primary borrower. The Borrower Information document includes Section 1 – Personal Information, which includes information specific to an individual, such as their gender, SSN, and employment information. For this option, Section 1 will repeat for a joint borrower immediately after Section 1 for the primary borrower. Sections 2, 3, & 4 are shared between the joint applicants. Sections 5, 7, & 8 will also repeat for a joint borrower, while sections 6 and 9 are shared.
Option 2 – Additional Borrower Document
A second option that can be used for joint borrowers is the use of the Additional Borrower component document, in conjunction with the primary borrower’s Borrower Information document. In this option, the joint borrower’s Section 1 information from the Borrower Information document is shown separately on the Additional Borrower document. For each shared section, the same as in Option 1 above, the Additional Borrower document will include a reference to the primary borrower’s Borrower Information document for that shared information. The remaining sections particular to an individual (Sections 6 and 9) are shown on the Additional Borrower document for the joint borrower.
Option 3 – Separate Borrower Information Documents
The third option for handling joint borrowers is to provide a separate Borrower Information component document for each joint borrower. This arrangement is helpful in scenarios where the borrowers have separate information for Sections 2 and 3. For this option, assets and liabilities are disclosed separately for joint borrowers, associated with one or the other joint borrower. Each borrower’s sections 5 – 9 are not shared with other borrower documents.
To use any of the options described above, other than the DocMagic default, please contact our Customer Service team for assistance.
