Compliance Updates: April 2025 In Review
Sep 22, 2017
Earlier this year, we wrote about the new Uniform Closing Dataset (UCD) delivery requirement coming from Fannie Mae and Freddie Mac, which changes the way lenders provide loan information to the nation’s largest investors. The requirement is set to go into effect this Monday, September 25.
The UCD is a component of the government sponsored agencies’ (GSEs’) Uniform Mortgage Data Program® (UMDP®) which is an ongoing effort by Fannie Mae and Freddie Mac to provide a common industry dataset to support the Consumer Financial Protection Bureau’s (CFPB) integrated disclosure laws. In fact, lenders will now be able to transmit the CFPB Closing Disclosure documents and data electronically. This way, regulators and the GSEs see “what the borrower sees.” This also creates an accurate loan file that is consistent for all lenders who sell loans to the GSEs.
The UCD mandate serves as a springboard to greater acceptance of eMortgage and eDocuments. At Docutech, we have certainly seen increasing levels of interest in making the transition to digital lending as the industry has been approaching this deadline. The GSE’s UCD requirement has the effect of taking another speed bump out of the path to a completely paperless lending infrastructure. That serves everyone in the value chain.
Being Prepared for Change
Fortunately for lenders, being prepared for UCD has not been as complicated as the work required in the run-up to the TRID deadline. Most lenders have now taken the key steps required.
MISMO standards, a vital component for UCD compliance, are now industry standard and virtually all of our clients are using these industry-developed data standards in their normal workflows. This makes UCD compliance easier and will also help when the new HMDA reporting rules go into effect.
Some lenders have also done the work required to embed the UCD file into their GSE loans. This involved some additional workflow and IT development work, which drove many lenders to hand this off to their document and LOS providers to handle. We have had that work completed for some time, as have our LOS development partners.
Key Requirements of the UCD:
Certified by the GSEs
Certified by both Fannie Mae and Freddie Mac, Docutech’s ConformX dynamic document generation
engine can generate the UCD XML file from the same data at the same time that the CD is created. In fact, Docutech clients can begin testing UCD delivery immediately. ConformX imports data directly from loan origination systems (LOSs), therefore you can be confident that the data will match the document, a requirement of the GSEs.
The preceding is for informational purposes only and is not and may not be construed as legal advice. No third-party entity may rely upon anything contained herein when making legal and/or other determinations regarding its practices, and such third party should consult with an attorney prior to embarking upon any specific course of action.