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The government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac announced this week that the optional use period for the redesigned Uniform Residential Loan Application (URLA) will not begin July 1 as previously scheduled. The redesigned application includes the addition of a preferred language question.

The decision is directed by Federal Housing Finance Agency (FHFA), which released its annual Report to Congress this week that included support for a number of NAFCU housing principles.

The delay announcement indicates that "the effective date of the form will be revised and an updated version will be provided at a later date." The redesigned URLA had been set to go into effect in February 2020.

The FHFA plans to engage with stakeholders in the coming weeks "to finalize issuance of an updated URLA form, corresponding datasets and a new implementation timeline."

The FHFA announced the addition of the preferred language question and compliance timeline in October 2017. As urged by NAFCU, the FHFA added disclosure language to the question to mitigate legal concerns raised by lenders – including credit unions.

NAFCU has a webinar available on-demand to help credit unions prepare to implement the redesigned URLA.