Fannie Mae has issued Announcement 05-05, to notify the industry of changes to the Uniform Residential Loan Application (Form 1003). These changes are in response to state laws, such as California's Domestic Partner Rights and Responsibilities Act of 2003, which took effect Jan. 1 and grants non-spouses the right to ownership of community property; and to the Federal Reserve Board's 2003 rule, effective April 15, 2004, requiring credit applicants to expressly indicate if they are applying individually or jointly.
The revised Form 1003 contains new instructions at the beginning of the document, regarding the recording of co-borrower information, when the loan application involves property subject to a non-applicant's community property rights, as well as changes to Section VI. Signature lines have been added to the top of the form for the applicant to indicate whether the application is made individually or jointly. Other changes to Form 1003 include a clearer acknowledgment from the borrower that the borrower is granting access to certain information in the loan application, or relating to the loan, to any owner or servicer of the loan. Section X of Form 1003 also has been updated to clarify that for face-to-face applications, if the borrower does not furnish the race, ethnicity or sex information, the lender is required to note the information based on visual observation and the surname of the borrower.
Similar updates have been made to the Spanish-language version of Form 1003 to mirror these changes, as well as enhancements to the translations for better accuracy. The new Form 1003 may be used immediately and is mandatory for all applications taken on or after Jan. 1, 2006.
Other topics addressed in Announcement 05-05 include revisions to the Verification of Credit and Business References (Form 1001), adding additional data fields to the form, and changes to the Uniform Underwriting and Transmittal Summary (Form 1008) to include new project type codes for identifying loans secured by condominiums.
For more information, visit www.fanniemae.com.