Why the 1003?
Uniform Residential Loan Application Freddie Mac Form 65 7/05 (rev.6/09) Page 1 of 5 Fannie Mae Form 7/05 (rev.6/09) This application is designed to be completed by the applicant(s) with the Lender’s cft-group.tk://cft-group.tk · Uniform Residential Loan Application Freddie Mac Form 65 7/05 (Rev. 6/09) VMP21N () Wolters Kluw er Financial Services Page 1 of 4 VMP Fannie Mae/Freddie Mac Fannie Mae Form 7/05 (Rev. 6/09) (including the Borrower's spouse) will be used as a basis for loan qualification orcft-group.tk Uniform Residential Loan Application Freddie Mac Form 65 7/05 (rev.6 /09) Page 1 of 8 Fannie Mae Form 7/05 (rev.6/09) Uniform Residential Loan Application _____ This application is designed to be completed by the applicant(s) with cft-group.tk
Mortgages Analyzed - Whatsapp Share. What is Fannie Mae Form ? Contents of Form The Form contains the following information: The first section contains certain instructions for the borrowers and explains who needs to complete the form. The loan product that is applied for is entered in this section. This section contains information relating to the property that will be used as collateral for the loan. The loan purpose and title information is also entered.
Personal information of the borrower and co-borrower is entered. Section IV — Employment Information: Two years of employment history is entered in this section. Part-time, temporary, and seasonal jobs held in last two years should also be entered. This section contains the income information for the borrower and co-borrower. The second set of information is the Combined Monthly Housing Expense information which determines the current cost of housing expense.
Section VI — Assets and Liabilities: The information relating to all the assets and liabilities of the borrowers is entered here. The section also requires detailed information of any real estate owned by the borrowers in the Scheduled of Real Estate Owned. Details of the structure of the property transaction is entered here. Declarations related to past credit, current residency status, purpose of residence, and other declarations are made. Certain sections may require the borrowers to provide detailed explanations.
Section IX — Acknowledgement and Agreement: The borrowers provide acknowledgment to various disclosures and affirmations.
The section also contains additional information that the loan originator needs to enter. The sheet is used to enter any additional information such as when there is not enough space in the form or when detailed explanations are required. Why is Form used as a standard loan application form?
Fannie Mae and Freddie Mac require lenders to the use of Form for all loans that are sold to them. Since lenders sell a large number of loans to Fannie Mae and Freddie Mac, it is much easier to implement the Form for all loans instead of having different forms for agency and non-agency loans. Simplifies Technology Development and Implementation: Most of the loan origination software systems have support for the Form , including the ability to transmit the loan application electronically.
Building customized application form entails additional costs. Form is widely used and understood by the industry which makes it easier to sell or transfer loans. This is especially useful when mortgage brokers are trying to shop at different lenders to obtain the best deal.
They can simply take the same application form and submit to different lenders and not worry about filling different forms for each lender. However, no regulation specifically requires the use of Form The lenders are free to use an alternate form as long as it is consistent regulatory requirements. Lender's Considerations Reviewed By The loan originator or loan processor should have the primary responsibility to review the form for completeness and consistency of information.
Recordkeeping Form is a vital document for a loan file and is used to demonstrate compliance with various regulations such as Regulation C, Regulation B, and Regulation X. Form is used to obtain financial and personal information about borrowers who apply for a mortgage loan secured by a one to four unit residential real estate.
Borrower completes and signs the form. The blank or pre-filled form is provided by the lender. Maintain for as long as loan is outstanding. For cancelled, withdrawn, denied loans, maintain for at least 25 months from date of action taken. Loan application form that is used by lenders to obtain financial and personal information from borrowers. Regulation B Related Documents. Responding To A Loan Decline. Average Prime Offer Rate. The loan application form, also called the Uniform Residential Loan Application, was developed by the Federal National Mortgage Association, or Fannie Mae, as a standardized form for the industry.
These entities purchase mortgages from individual lenders and hold the loans in their own portfolios, or sell the loans to other entities as part of a mortgage-backed security MBS. By selling consumer mortgage debt to these federally backed entities, lenders maintain the liquidity necessary to continue offering new loans.
Mortgages need to be documented in the way that Fannie Mae and Freddie Mac dictate. Since both entities require the use of Form , or Form 65, its Freddie Mac equivalent, for any mortgage they consider for purchase, it is simpler for lenders to use the appropriate form at the outset than to try to transfer information from a proprietary form to a when it comes time to sell the mortgage. The form includes all the information a mortgage lender needs to determine whether a potential borrower is worth the risk of the loan.
This includes information about the borrower's identity. While some lenders do not require employment information to consider a new mortgage, the form requires up to two years of employment history to be entered for each borrower. This is used as a means of establishing the financial security and reliability of the borrower. The form also requires a borrower to disclose the total monthly income for his household, as well as his regular monthly expenses.