Welcome to the Ace the 1003 URLA Quiz: Master the Uniform Loan Application! Designed to challenge mortgage pros and aspiring loan officers, this free Uniform Residential Loan Application quiz helps you test your command of 1003 URLA questions, build confidence in your URLA test prep, and learn key details of income, assets, and property specifics. You'll sharpen your ability to analyze borrower credit profiles, interpret property data, and ensure compliance with underwriting standards - all critical skills for smooth loan approvals. Ready to see where you stand? Dive into this URLA practice test now, and after you've aced it, explore our nmls practice questions or fine-tune your appraisal savvy with a valuation quiz . Let's elevate your expertise - start the challenge today!
What is the primary purpose of the Uniform Residential Loan Application (Form 1003)?
To apply for a residential mortgage loan
To register property with the county recorder
To transfer deeds between parties
To report credit inquiries to the credit bureaus
The URLA, or Form 1003, is the standard document used by lenders to collect information from borrowers applying for a residential mortgage loan. It gathers the borrower's personal, employment, income, asset, and liability data. This form is accepted by most conventional and government-insured lenders in the United States. Learn more.
Which section of the URLA collects the borrower's current employment information?
Section IV
Section VII
Section I
Section II
Section IV of Form 1003 is dedicated to employment information, including the borrower's current employer, position, start date, and gross monthly income. Accurate employment details are critical for underwriting income considerations. The section also provides space for additional employer entries. See Form 1003.
In which section of the URLA does the borrower report their assets and liabilities?
Section III
Section V
Section VIII
Section X
Section V of the URLA is used to list the borrower's assets (bank accounts, investments) and liabilities (loans, credit card debt). Lenders use this information to calculate the borrower's net worth and debt-to-income ratio. This section ensures that all outstanding obligations are properly documented. CFPB Form 1003.
Which of the following must be provided under "Borrower Information" on the URLA?
Social Security number
Mortgage interest rate
Appraised property value
Title company name
Under the "Borrower Information" section, the applicant must supply personal data including their full name, Social Security number, date of birth, marriage status, and contact information. This data helps lenders verify identity and perform credit checks. Mortgage-specific details are collected later in the application. Investopedia Overview.
Which section asks about the property to be purchased or refinanced on the URLA?
Section IX
Section II
Section VI
Section XI
Section II of the URLA collects property details, including address, year built, purpose of the loan (purchase, refinance), and the loan amount requested. This section ensures the lender has adequate information about the collateral. Clear property data is vital for appraisal and underwriting. Mortgage Training Center.
Who must sign the URLA to make it a valid mortgage application?
Loan officer only
Co-borrower only
Borrower and co-borrower (if applicable)
Borrower only
The borrower - and any co-borrower listed - must sign and date the Form 1003 to certify that all information provided is true and correct. Without these signatures, the form is incomplete and cannot proceed to underwriting. Lender certifications are on a different page. Freddie Mac Form Guide.
In which section does the borrower declare intentions regarding occupancy status (e.g., primary residence, second home)?
Section IX
Section VIII
Section X
Section VII
Section VIII of the URLA requires borrowers to indicate whether the property will be a primary residence, second home, or investment property. Occupancy status affects loan pricing and eligibility. Misrepresentation of occupancy can result in loan fraud penalties. CFPB Occupancy Rule.
How many years of employment history must be documented on the URLA if the borrower has changed jobs recently?
5 years
No limit
1 year
2 years
The URLA requires a minimum of two years of consistent employment history. If the borrower has changed jobs during that period, each employer must be listed, along with dates and position titles. This helps underwriters assess employment stability. Urban Institute URLA Review.
Which type of income should be listed under 'Other Income' on Section II of the URLA?
Gifts from family for down payment
Interest on savings account
Regular salary
Alimony or child support
Alimony, child support, and separate maintenance payments should be disclosed under 'Other Income' if the borrower chooses to have them considered by the lender. These must be received consistently for at least six months and expected to continue for three years. Regular salary and interest are reported elsewhere. CFPB Mortgage Income.
On the URLA, how is self-employment income documented?
By listing it under 'Other Income' without details
By listing employer name as 'Self' in Section IV and providing net income
Only by providing a W-2 form
By excluding it entirely
Self-employed borrowers must list themselves as the employer in Section IV and report their gross monthly income after expenses. Underwriters then require tax returns and profit/loss statements to verify consistency. A W-2 alone is insufficient for self-employment. CFPB Self-Employment.
Which section of the URLA contains the borrower's declarations of judgments, bankruptcies, and foreclosures?
Section IX
Section VI
Section XI
Section XII
Section IX is the Declarations section where borrowers disclose any legal or financial events (bankruptcies, foreclosures, judgments, suits) over the past seven years. This information is used to evaluate credit risk. Failure to disclose can result in loan denial or fraud allegations. Fannie Mae Declarations.
If a borrower is in the military, which occupancy status may they select on the URLA when leaving the home temporarily?
Second home
Vacation property
Primary residence
Investment property
Active-duty military personnel can still classify their home as a primary residence even when deployed, under certain VA guidelines. Lenders must follow VA occupancy rules that permit this designation. It's important for loan eligibility and VA entitlement. VA Home Loan Occupancy.
What is the correct way to report gift funds on the URLA?
In Section IX as a declaration
Under assets with a gift letter from the donor
In 'Other Income' without documentation
As employment income
Gift funds must be reported as an asset in Section V, with a gift letter from the donor certifying no repayment is required. Underwriters review both the source of funds and the donor's ability to provide the gift. Reporting incorrectly can delay or invalidate approval. CFPB Gift Funds.
How many months of mortgage or rent history should be listed on the URLA?
3 months
6 months
24 months
12 months
Section VI of Form 1003 requires the borrower's housing history for the last six months, including landlord or mortgage lender contact information, payment amounts, and account numbers. Underwriters use this to gauge payment history reliability. Less than six months may require explanations or rent verifications. URLA Instructions.
What is the impact on the debt-to-income (DTI) ratio if a borrower has a pending revolving credit account with a zero balance?
It is excluded from liabilities
A 5% of credit line is added as liability
Full credit line is counted as debt
It is reported in assets instead
When a borrower has a revolving account with a zero balance, under most underwriting guidelines the lender must include 5% of the total credit limit as a monthly liability in the DTI calculation. This accounts for potential drawing on the line of credit. Ignoring it could understate obligations. Underwriting Revolving Credit.
Which property type code on the URLA indicates a condominium unit?
3
4
1
2
On Form 1003, the property type codes designate one-family detached (1), condominium (2), planned unit development (3), or manufactured housing (4). Choosing the correct code is crucial for risk assessment and appropriate underwriting guidelines. Freddie Mac Form Codes.
When calculating adjusted income for qualification, which of the following is excluded under URLA guidelines?
Child support not disclosed as qualifying income
Social Security benefits
Net rental income from investment property
Overtime regular for past two years
If the borrower does not choose to have child support considered as qualifying income, it must be excluded from adjusted income calculations. Only income sources intended for loan qualification are included, provided documentation requirements are met. Overtime, rental, and SSA can be included if verified. CFPB ATR Rule.
How should a borrower report a co-maker liability on the URLA?
Under liabilities with notation 'co-maker'
Under Section IX as a declaration
It is not reported
Under assets with no amount
A co-maker liability (where the borrower is jointly responsible for another individual's debt) must be listed in Section V under liabilities, with an annotation indicating 'co-maker' next to the creditor name. This ensures accurate debt-to-income evaluation. Omitting it may result in incorrect underwriting. MBAA URLA Update.
What documentation is required to verify rental income from a second property on the URLA?
Credit report of tenant only
Appraisal of the second property
Lease agreement and two years' tax returns
Bank statement deposits alone
Underwriters generally require a copy of the lease agreement and the borrower's two most recent years of tax returns to verify rental income. This demonstrates consistent rental receipts over time. Bank statements alone do not provide the same level of historical income evidence. CFPB Mortgage Handbook.
How is a pending lawsuit disclosed on the URLA?
Under Section VI housing history
In Section IX Declarations
In Section V under liabilities
It does not need to be disclosed
Pending lawsuits must be disclosed in Section IX (Declarations) of the URLA. Borrowers answer yes/no to legal actions such as lawsuits, judgments, and liens from the past seven years. Failing to disclose can result in loan denial for misrepresentation. Fannie Mae Declarations.
Which section of the URLA must list the borrower's monthly alimony or child support obligations if not considered qualifying income?
Section II Property Information
Section XI Acknowledgments and Agreements
Section VIII Declarations
Section V Assets and Liabilities
Section V requires borrowers to list all monthly debts, including alimony or child support, even if they choose not to have them counted as qualifying income. This ensures accurate calculation of debt-to-income ratio. Omitting them can lead to underwriting issues. Investopedia DTI.
Under the Ability-to-Repay rule, which qualifying ratios does the URLA support lenders in calculating?
Neither ratio
Only back-end ratio
Only front-end ratio
Both front-end and back-end ratios
The URLA framework provides fields to capture all recurring debts and housing expenses, enabling lenders to calculate both front-end (housing expense) and back-end (total debt) ratios under the ATR rule. Compliance with ATR ensures borrowers have the capacity to repay. CFPB ATR Guidance.
Which form version code on the URLA identifies it as compliant with the 2018 redesign?
2015 URLA
2021 URLA
2020 URLA
URLA v2
The redesigned URLA implemented in March 2021 is commonly referred to as the 2021 URLA. It streamlined data collection and incorporated new data points for digital processing. Lenders must use the current version for compliance with GSE requirements. Fannie Mae URLA Redesign.
0
{"name":"What is the primary purpose of the Uniform Residential Loan Application (Form 1003)?", "url":"https://www.quiz-maker.com/QPREVIEW","txt":"What is the primary purpose of the Uniform Residential Loan Application (Form 1003)?, Which section of the URLA collects the borrower's current employment information?, In which section of the URLA does the borrower report their assets and liabilities?","img":"https://www.quiz-maker.com/3012/images/ogquiz.png"}
Score4/23
Easy1/7
Medium1/7
Hard2/7
Expert0/2
AI Study Notes
Email these to me
You can bookmark this page to review your notes in future, or fill out the email box below to email them to yourself.
Study Outcomes
Identify Key Sections of the 1003 URLA -
Recognize and differentiate the main parts of the Uniform Residential Loan Application to navigate the form with confidence.
Analyze Occupancy and Property Details -
Examine questions related to occupancy status and property information to determine borrower eligibility and loan terms.
Apply Residence History Requirements -
Accurately input past address details by understanding the duration and documentation needed for each residency period.
Recall Documentation Needed for URLA Completion -
List essential supporting documents and data points required to complete the application correctly and avoid delays.
Evaluate Common Mistakes and Pitfalls -
Spot typical errors in URLA entries and learn strategies to correct or prevent them in real-world scenarios.
Improve Your URLA Confidence and Speed -
Use instant quiz feedback to pinpoint weaknesses, reinforce knowledge, and boost efficiency when filling out the 1003 URLA.
Cheat Sheet
Structure of the 1003 URLA -
The Uniform Residential Loan Application is divided into key sections - Borrower Information, Employment, Assets, Liabilities, and more - to organize vital data (Fannie Mae Selling Guide B3-3.1-01). Familiarizing yourself with each part on a Uniform Residential Loan Application quiz helps you breeze through the test and real-world 1003 URLA processes.
Calculating Debt-to-Income (DTI) -
Use the formula DTI = (Total monthly debt obligations / Gross monthly income) × 100 to determine your borrower's eligibility; according to CFPB guidelines, most conventional loans cap DTI at 43%. Practicing this calculation on a URLA practice test with sample numbers (e.g., $1,200 debts ÷ $6,000 income = 20%) reinforces retention and speed.
Asset Verification Essentials -
Lenders often require two months of bank statements to confirm cash reserves and validate assets listed on the 1003 URLA (Freddie Mac Lender Letter 2020-1). Use the mnemonic "CASH" (Current balance, Activity, Source, Holding institution) during your URLA test prep to ensure you review every element in an applicant's accounts.
Navigating the Declarations Section -
The Declarations segment poses critical yes/no questions about past bankruptcies, legal judgments, or alimony obligations, directly influencing credit risk (HUD Single Family Housing Policy Handbook). Carefully reviewing these 1003 URLA questions and answering honestly can prevent underwriting delays and compliance issues.
Mastering Government Monitoring Data -
Section X of the URLA collects voluntary demographic details - race, ethnicity, sex - under Regulation B to uphold fair lending compliance (CFPB). Treat this as a mock demographic survey in your URLA practice test and use "SEER" (Sex, Ethnicity, Entries on Race) as a quick memory aid.
