An Interactive Tool
prepared and posted 12-2008; note that laws change and forms may be revised at any time

The Fair Housing Council (FHCO) has selected the Uniform Residential Loan Application to use as a sample loan application because it is the standard form used for all Fannie Mae (http://www.fanniemae.com/faq/faq1.jhtml?p=FAQ) and Freddie Mac (http://www.freddiemac.com/corporate/company_profile/our_mission/index.html) conforming (http://banking.about.com/od/mortgages/p/conformingloan.htm), and FHA (http://banking.about.com/od/mortgages/a/FHALoans.htm) / VA (http://homebuying.about.com/cs/valoans/a/va_home_loans.htm) residential mortgage loans. 

It is our aim to demystify the loan application process by providing tips and instructions you can use in filling out this or other similar loan application forms.  We want you to become an informed buyer, to help you make better decisions, and avoid costly mistakes.

To quote Brian Montgomery, the HUD Assistant Secretary for Housing and Federal Housing Commissioner, "The core problem is that too many Americans sign a mountain of documents they don't understand and pay thousands of dollars for services that they've probably never heard of.”

In addition to hyperlinked tips and instructions specific to this form, we have provided you with additional links throughout this page with more general buying and lending information and definitions.

The FHCO would like to give special thanks to the industry professionals, trade associations, advocates, and colleagues who helped provide the material for this interactive forms project!

Jump to the:

Interactive Uniform Residential Loan Application now

View the Uniform Residential Loan Application in:

Contents of this Page:

Questions about Your Credit or the Mortgage Process?
What to Expect When Appling for a Mortgage
General Recommendations
Beware of Predatory Lending
About the Standard Loan Application
Using this Interactive Tool

	return to top of page

If you have questions about your credit or the mortgage process:

• Consult with your chosen lender and / or sales agent.
• To check mortgage lender licenses and registrations contact:
  ---For state-chartered lending institutions contact the Oregon Dept. of Consumer and Business Services at 866/814-9710, or http://www.oregon.gov/DCBS/
  ---For commercial banks contact the Office of the Comptroller of the Currency at http://www.occ.treas.gov or 800/613-6743
  ---For savings and loans contact the Office of Thrift Supervision at http://www.ots.treas.gov or 800/842-6929
  ---For credit unions contact the National Credit Union Administration at http://www.ncua.gov or 703/518-6330
• To report lending scams contact the State Attorney General Office at 877/877-9392, http://www.doj.state.or.us, or consumer.hotline@doj.state.or.us.
• For a list of Dept. of Housing and Urban Development (HUD)-approved housing counseling agencies by state visit http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm.
• If you feel you have been a victim of predatory lending, contact the Oregon Dept. of Consumer and Business Services Division of Finance and Corporate Securities at 866/814-9710, or http://dfcs.oregon.gov.  
• Visit our Home Buying, Credit, & Financial Literacy page at www.FHCO.org/hm_buying.htm for more information. This page includes information on avoiding predatory loans and foreclosure.

Some of the instructions and notes provided here were based on information provided by Fannie Mae at https://www.efanniemae.com/sf/formsdocs/forms/1003.jsp. 

	return to top of page

What to Expect When Applying for a Mortgage:

Your lender may accept your application during a face-to-face appointment, over the telephone, through the mail, or via the internet. S/he should complete all blanks and attach any separate exhibits, details, statements, or addenda that are needed to underwrite (http://en.wikipedia.org/wiki/Underwriting) the mortgage. You will be required to sign the original application at the time it is completed or as soon as possible thereafter; an electronic signature or facsimile is acceptable.

Never sign an application or legal document with blanks not filled in or “scratched out” as unscrupulous individuals could alter the document without your knowledge, making it look as if you had signed it with the information s/he had added.

Your lender should retain the original application with any supporting documentation; you should get a complete copy. Before or at closing (http://www.escrowhelp.com/qanda-1.html) you will be required to sign the final application your lender prepares based on his/her verification of the information you provided in the original application.  You should read and review the final application carefully.  Be certain that you thoroughly understand it before signing it and that all of the information is accurate. Again, be sure you get a complete copy.

	return to top of page

General Recommendations:

Never sign any document you don't understand or that has blank lines that are not filled in or "scratched out." 

Review all of your loan (and all of your legal and purchase) documents right away to be sure you understand them.  Be sure you know how your loan payments will be credited, what your obligations are to your lender, and what rights you have including what happens if you miss a mortgage payment. 

For example, your Truth-in-Lending disclosure and your loan documents will contain information about when your payments will be due and how to ensure your payments are posted on time.  If your loan is transferred or sold to another company down the road (which is a common practice) the lender or the holder of the loan must notify you in writing so you know when and whom to send your payments to.

It is also very important that you know whether you or your lender is responsible for making the payment for your property taxes and property insurance.  You pay for them either way, but you should know if your lender has wrapped these expenses into your monthly mortgage payment amount and will pass on the money to your county tax department and insurance company, or if they are bills you need to pay directly yourself.

Much of these General Recommendations were borrowed from the
State of Oregon’s Dept. of Consumer & Business Services'
brochure on avoiding foreclosure.

	return to top of page

Beware of Predatory Lending:

Most lenders are honest, but there are some who may employ “Predatory lending practices” which victimize and cause harm to uneducated borrowers. Predatory lenders can use their knowledge about how loans are structured to your disadvantage. They target people with low incomes or those assumed to have poor credit, including racial and ethnic minorities as well as seniors and individuals with disabilities. Since all of these targeted populations are members of groups protected under fair housing laws, we at The Fair Housing Council aim to educate you and the general public about fair housing laws, protected classes, and the threat of predatory lending practices.

Loan officers making these loans often use high-pressure tactics and charge considerably more than reasonable interest rates. In addition, sometimes predatory lenders intentionally lend more than the homebuyer or homeowner can afford to pay back and/or do not fully disclose the loan terms and costs, as required by law — two tactics that put homeowners at risk of losing their home.

Another predatory loan practice is to sell one loan product but have paperwork for a different loan product at the closing table—an example of a “bait and switch” tactic. Buyers either do not catch the difference, or if they do, feel pressured to accept the new terms or risk "losing the loan," loosing any prepaid costs, and missing out on purchasing the house of their dreams. How does the loan officer explain this change? Usually the excuse is that the lender changed their mind, which may or may not be true.

Sometimes the terms of the loan are changed without disclosure; hence the vital importance that you know how to read your HUD-1 Settlement Statement and understand everything on it before committing yourself to a loan by signing the note and trust deed. Learn more about predatory loans online at http://www.oregondfcs.org or call (866) 814-9710.

Another potentially unscrupulous practice used by some loan officers involves what is known as a Yield Spread Premium or mortgage “broker rebate." A Yield Spread Premium is a "rebate" given to a mortgage broker at the "back end" of a loan transaction in exchange for originating the loan at an interest rate higher than the prevailing market rate. These rebates can amount to several thousand dollars. This can provide an incentive for an unscrupulous loan office to originate the loan at an interest rate much higher than is necessary.

Click here for an eye-opening article entitled “Confusion Leads to Higher Closing Costs.” This article highlights some of the inappropriate and illegal activity that harm ill-informed and unsuspecting homebuyers and homeowners.

You are strongly encouraged to "shop around," that is, call banks yourself for terms and costs; talk to with your credit union if you are a member; talk to more than one mortgage broker. You should also educate yourself on the difference between loan originators who work for a single lender and those who work with several lenders without affiliation. The second group may appear to be a better choice, but sometimes they are not! With regard to the topic of Yield Spread Premiums specifically, following are some questions you should ask:

• Are there any Yield Spread Premiums involved with any loan program you are presenting to me? If so, how much (in dollars) are the rebates?
• Is it possible to get a lower interest rate that does not have any Yield Spread Premium attached to it?
• Would you be willing to show me the "wholesale" rate sheets so that I can see the various interest rates and Yield Spread Premiums? NOTE: brokers currently are not required to show these rate sheets.

	return to top of page

About the Standard Loan Application Form:

Mortgage lenders will use a form such as this to record relevant financial information about you when you apply for a conventional home loan.  This sample loan application is designed to print as a letter-sized document. You should know, however, that lenders might use the same form in a legal-sized format with different fonts or margins that may affect pagination, or (if you are not applying for a conventional loan), may use a different form all together.  The importance of reviewing this interactive sample form is to educate you about the mortgage process in general. 

	return to top of page

Using this Interactive Tool:

Click here to view a copy of the Uniform Residential Loan Application in Portable Document File (PDF) format. 

You will need the Adobe® Reader® software to view this document; in addition, if you have any difficulty viewing the document, downloading the latest version may remedy the matter. Download a free copy of Adobe Reader (http://www.adobe.com/products/acrobat/readstep2.html) if needed.

Once opened, you may read the file online or save a copy by selecting File / Save As and choosing a location on your computer to save the sample loan application document.

Whether reading the file online or saved to your computer, simply roll your mouse over the form to find hyperlinked sections. 

LEFT click once on each link to view the tips and instructions relevant to that section.  When you’re done with each, hit the "Return" button at the bottom or use your browser's "Back" button to continue on with the Interactive Uniform Residential Loan Application.

Go to the Interactive Uniform Residential Loan Application now

	return to top of page

	"Thank You" The FHCO would like to thank our partners and members for their support. Their grants and contributions have helped to make the resources on this site possible. Please join them in our efforts!

©2010. FHCO. All rights reserved.