Fannie Mae Form 1003 is a loan application form designed by Fannie Mae and Freddie Mac that is used by lenders to obtain financial and personal information from borrowers who apply for a mortgage loan secured by a one to four unit residential real estate. Form 1003 is also known as the Uniform Residential Loan Application (URLA). Form 1003 is widely adopted by mortgage lenders as a standard loan application form. It is generally referred to as Form 1003, or just 1003 and pronounced as "ten-o-three". Freddie Mac also uses the same application form and is known as the Freddie Mac Form 65.
Form 1003 is filled at two times during the loan process. Form 1003 is first completed at the time of making a loan application and this form is generally referred to as "Initial 1003". Initial 1003 helps establish the date of application, permissible purpose for obtaining credit report, and intent of borrowers to make a joint application. The initial 1003 may be completed by the borrower or by the loan originator on behalf of the borrower. However, the initial Form 1003 should be signed by each borrower. For applications taken over phone, the loan originator may complete the application form and then send the completed form to the borrower for signature. For applications taken through the Internet, the lender may obtain an electronic signature or send a printed copy to the borrower for signature.
The second Form 1003 is prepared at the time of loan closing. This is generally referred to as "Final 1003" and is prepared by the lender. The purpose of Final 1003 is to have the borrower confirm the loan application information after all the details have been verified by the lender.
Another Form 1003 is prepared at the time of loan closing. This is generally referred to as "Final 1003" and is prepared by the lender. The purpose of Final 1003 is to have the borrower confirm the loan application information after all the details have been verified by the lender. Therefore, the final 1003 has the income, asset, and employment information that the lender verified and used for underwriting purposes.
The Form 1003 contains the following information:
The loan originator or loan processor should have the primary responsibility to review the form for completeness and consistency of information. Any discrepancy in the income, employment, or asset information should be investigated and verified through independent sources. The lender’s Quality Control (QC) department may perform additional reviews of the form to ensure operational effectiveness. Internal audit, compliance, and risk management department would form the final layer of reviews to ensure that the form is being correctly completed.
Form 1003 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. Therefore, Form 1003 should be kept with the loan file for as long as the loan is outstanding. For cancelled, declined, or withdrawn loan the Form 1003 should be maintained for at least 25 months after the date when the decline notice was sent. This will meet the recordkeeping requirements of Regulation B.
Updated: Oct 19, 2013