Section 6
Section 6 of the Uniform Residential Loan Application (URLA) is titled "Acknowledgments and Agreements." This section outlines the legal obligations of the applicant when they sign the application. Here are some key points from Section 6:
- Electronic Records and Signatures: If the application is created or converted into an electronic format, the applicant consents to the use of electronic records and signatures as defined by applicable Federal and/or state electronic transactions laws.
- Intent to Sign: The applicant indicates their intention to sign the application, which can be done either with an electronic signature or a written signature. If a paper version is converted into an electronic application, the electronic record will contain a representation of the applicant's written signature, which will serve as their binding electronic signature.
- Definitions: The section defines terms such as "Lender," which includes the lender's agents, service providers, successors, and assigns, and "Other Loan Participants," which includes actual or potential owners of the loan, acquirers of any interest in the loan, mortgage insurers, guarantors, servicers of the loan, and their service providers, successors, or assigns.
- Truthful Information: The applicant agrees to provide true and accurate information in the application and acknowledges that providing false information could result in penalties.
- Cooperation with Lender: The applicant agrees to cooperate with the lender and to provide any further information as directed by the lender.
- Legal Effect: Signing the application signifies that the applicant agrees to the terms and acknowledges their legal obligations.
This section is crucial because it contains the legal affirmations and consent from the borrower regarding the information provided in the application. It also sets the framework for the legal and binding nature of the electronic or written signature on the application. It's important for the applicant to read and understand this section thoroughly before signing, as it outlines their agreement to the terms and their acknowledgment of the responsibilities and potential consequences associated with the application process.
