www.hudclips.org U. S. Department of Housing and Urban Development Washington, D.C. 20410-8000 March 2, 1992 OFFICE OF THE ASSISTANT SECRETARY FOR HOUSING-FEDERAL HOUSING COMMISSIONER MORTGAGEE LETTER 92-7 TO: ALL APPROVED MORTGAGEES SUBJECT: Single Family Loan Production - Implementation of the Uniform Residential Loan Application (URLA), HUD/VA Addendum to URLA (Form HUD 92900-A) and Request for Endorsement (Form HUD-54111) This letter is to inform you about HUD's adoption of the new Freddie Mac Form 65/Fannie Mae Form 1003-Uniform Residential Loan Application (URLA). Lenders no longer have to use the Form HUD-92900 as the borrower's application for HUD mortgage insurance. HUD will accept the URLA. This should streamline mortgage loan application processing for lenders and provide faster service for prospective borrowers. I. UNIFORM RESIDENTIAL LOAN APPLICATION (URLA) The HUD/VA Application for Insurance, Form HUD-92900 which had previously contained a basic application and certificates of commitment, will be eliminated effective on the mandatory URLA use date stated below. Instructions for completing the URLA for HUD-insured mortgages are attached as Exhibit A to this letter. II. FORMS HUD-92900-A AND HUD-54111 Because of the adoption of the URLA, lenders and borrowers will have to complete a HUD/VA Addendum to the Uniform Residential Loan Application (Form HUD-92900-A). This addendum to the URLA is necessary because HUD and VA have certain statutory and regulatory requirements that must be satisfied for insured or guaranteed loans. A copy of the Addendum and instructions for its completion are attached as Exhibit B to this letter. To accommodate use of the URLA by HUD, it was also necessary to revise Form HUD-54111, Request for Insurance Endorsement. This revised form and its instructions for completion are attached as Exhibit C to this letter. _____________________________________________________________________ IMPORTANT: When using the URLA you must also use with it the new HUD 92900-A. Together, these forms comprise the complete HUD application for mortgage insurance. III. EFFECTIVE DATE Lenders may begin using the URLA, the new HUD/VA Addendum (92900-A) and the revised Form 54111 immediately. The URLA, HUD/VA Addendum (92900-A) and revised Form 54111 must be used for all cases involving a sales contract signed on or after July 1, 1992. Lenders are reminded that they must continue to complete the Mortgage Credit Analysis Worksheet (Form HUD 92900-WS). HUD will not provide copies of these forms to lenders. Lenders must obtain copies of these forms from private sources or the Government Printing Office. Because the URLA is not a HUD form, it is not available from the GPO and must be obtained from private sources. Very sincerely yours, Arthur J. Hill Assistant Secretary for Housing - Federal Housing Commissioner Attachments _____________________________________________________________________ EXHIBIT A INSTRUCTIONS TO COMPLETE THE UNIFORM RESIDENTIAL LOAN APPLICATION (URLA) The URLA is a comprehensive collection of information related to the applicant(s). The URLA, for the purpose of a HUD insured mortgage, is not complete unless accompanied by the HUD/VA Addendum to the URLA (Form HUD-92900-A). The URLA is self explanatory, however, the blocks listed below require instruction to assure proper completion. SECTION I - AGENCY CASE NUMBER: To prevent confusion in the event the pages of the URLA become separated, we suggest that the HUD case number be inserted on all pages of the URLA. Page one contains a specific box for the case number. On all other pages write the case number in the upper right corner. SECTION VII - DETAILS OF PURCHASE: If the calculation in the Details of Purchase section of the URLA (revised 5/91 version) is followed literally, the "Cash from/to Borrower" line (item p) is too low by the amount of the Mortgage Insurance Premium. Lenders may choose one of the following three methods to correct this: o strike the words "paid in cash" (line g) of Section VII, Details of Transaction or o ignore line g and add the Upfront Mortgage Insurance Premium to "estimated closing costs", (line f) or o change the instruction in item "p" to "(subtract j,k,l, & m from i)". SECTION X - INFORMATION FOR GOVERNMENT MONITORING PURPOSES: If the applicant chooses not to furnish race or sex, Federal Regulations require the lender to note race and sex on the basis of visual observation or surname. This information is collected, in part, for the Home Mortgage Disclosure Act (HMDA). _____________________________________________________________________ EXHIBIT A continued STREAMLINE REFINANCE TRANSACTIONS: It is not necessary to complete Section IV (Employment) or Section VI (Assets and Liabilities) for streamline refinance transactions. ORDER OF DOCUMENTS IN CASE BINDER: Place the Uniform Residential Loan Application (URLA) in the order in place of the HUD-92900. _____________________________________________________________________ EXHIBIT B INSTRUCTIONS TO COMPLETE THE ADDENDUM TO THE UNIFORM RESIDENTIAL LOAN APPLICATION (form HUD-92900-A) The HUD/VA Addendum (92900-A) consists of five (5) pages. Pages 1 and 2 contain statutory and regulatory information and certifications. Pages 3 and 4 contain the Direct Endorsement lender's approval/certifications and the borrower(s) certification. Page 5 contains the VA Commitment for Guaranty. Do not submit page 5 for HUD applications. HUD PROCESSED CASES: Pages 1 and 2 completed, signed and dated must be included in the case binder at the time of submission for firm commitment processing. Omit pages 3 and 4. The HUD field office executes a Firm Commitment (form HUD 92900.4) in lieu of page 3 and 4. PRECLOSING DIRECT ENDORSEMENT CASES: Pages 1 through 3 completed, signed and dated must be included in the case binder at time of submission for firm commitment processing. Omit page 4 of the Addendum. The HUD field office executes a Firm Commitment (form HUD 92900.4) on preclosing cases. DIRECT ENDORSEMENT AND COINSURANCE CASES: Pages 1 through 4 completed, signed and dated must be included in the case binder at time of submission for insurance endorsement. EXECUTION OF THE ADDENDUM: It is not necessary to sign the URLA and the Addendum on the same date. It is possible that a borrower would start a case as a conventional mortgage and convert the application to a HUD case by signing the Addendum. Obviously, these documents would bear different dates. However, the lender's certification (Page 1, Part II of the Addendum) must be the same date or after the date of the borrower's certification (Page 2, Part IV of the Addendum). A copy of the Addendum must be provided to the borrower. ORDER OF DOCUMENTS IN CASE BINDER: Place the Addendum on top of the Uniform Residential Loan Application (URLA). _____________________________________________________________________ EXHIBIT B HUD/VA Addendum to Uniform Residential Loan Application __________________________________________________________________________ ******************************************************************** * * * * * * * * * * * * * * * * * * * GRAPHICS MATERIAL IN ORIGINAL DOCUMENT OMITTED * * * * * * * * * * * * * * * * * * * ******************************************************************** __________________________________________________________________________ VA Form form HUD-92900-A (12/91) Dec. 1991 26-1802a Page 1 (1 of 5) _____________________________________________________________________ EXHIBIT B ___________________________________________________________________________ ******************************************************************** * * * * * * * * * * * * * * * * * * * GRAPHICS MATERIAL IN ORIGINAL DOCUMENT OMITTED * * * * * * * * * * * * * * * * * * * ******************************************************************** __________________________________________________________________________ VA Form 26-1866a form HUD-92900-A Page 2 (2 of 5) _____________________________________________________________________ EXHIBIT B __________________________________________________________________________ ******************************************************************** * * * * * * * * * * * * * * * * * * * GRAPHICS MATERIAL IN ORIGINAL DOCUMENT OMITTED * * * * * * * * * * * * * * * * * * * ******************************************************************** __________________________________________________________________________ form HUD-92900-A Page 3 (3 of 5) _____________________________________________________________________ EXHIBIT B ___________________________________________________________________________ ******************************************************************** * * * * * * * * * * * * * * * * * * * GRAPHICS MATERIAL IN ORIGINAL DOCUMENT OMITTED * * * * * * * * * * * * * * * * * * * ******************************************************************** __________________________________________________________________________ form HUD-92900-A Page 4 (4 of 5) _____________________________________________________________________ EXHIBIT B __________________________________________________________________________ ******************************************************************** * * * * * * * * * * * * * * * * * * * GRAPHICS MATERIAL IN ORIGINAL DOCUMENT OMITTED * * * * * * * * * * * * * * * * * * * ******************************************************************** __________________________________________________________________________ VA Form 26-1866a form HUD-92900-A Page 5 (5 of 5) _____________________________________________________________________ EXHIBIT C INSTRUCTIONS TO COMPLETE THE REQUEST FOR INSURANCE ENDORSEMENT (form HUD-54111) The Request for Insurance Endorsement (54111), has been revised to collect information for the Computerized Homes Management System (CHUMS) as a result of the use of the URLA and Addendum (92900-A). The 54111, is a data entry form used by HUD for cases processed under the Direct Endorsement Program. The form is completed by the lender and the data is entered by the HUD Field Office staff. It is crucial that all of the data be correct on the 54111 so that HUD Field Office staff may enter the data into CHUMS accurately. The information is vital to HUD and incorrect data results in delays in issuing Mortgage Insurance Certificates. Lenders using the CHUMS Lender Access System (CLAS) are now able to transmit their requests for insurance endorsement (Form 54111) through CLAS. This process will speed endorsement processing and reduce errors by pre-filling the CHUMS screen. GOVERNMENT MONITORING INFORMATION: Race and Sex (boxes 11 through 17) of the 54111 are required to be completed by the lender. The information is obtained from the URLA. FIRST TIME HOME BUYER: Answer "yes" if any of the applicants is a First Time Home Buyer. EFFECTIVE DATE: Direct Endorsement cases submitted for endorsement and containing the URLA and Addendum must use the revised form 54111. _____________________________________________________________________ EXHIBIT C Request for Insurance Endorsement Under the Direct Endorsement Program __________________________________________________________________________ ******************************************************************** * * * * * * * * * * * * * * * * * * * GRAPHICS MATERIAL IN ORIGINAL DOCUMENT OMITTED * * * * * * * * * * * * * * * * * * * ******************************************************************** __________________________________________________________________________ form HUD-54111 (12/91) ref. Handbook 4000.4