A 1003 is Fannie Mae’s Uniform Residential Loan Application (URLA) form—the standardized document every U.S. mortgage applicant fills out.
What’s Happening
Since Fannie Mae’s 2026 URLA v1.3 update, DU rejects files with stale property-status codes or scrambled data.
Desktop Underwriter (DU) flags files as “Out of Scope” or rejects them? The usual suspects are outdated codes in Section II—S (Sold), PS (Pending Sale), or R (Rental). The 2026 schema also cracked down on the “ULI” field, which has been conditionally required since 2021. Leave that field blank, and your upload stalls. These issues aren’t rare either—Fannie Mae found 72% of DU rejections in 2025 traced back to URLA data errors (Fannie Mae URLA Tech Guide).
Step-by-Step Solution
Re-enter the correct property status code, export the URLA as a 2026-compliant PDF, upload it to DU, and validate.
- Fire up your lender’s Loan Operating System (LOS)—Encompass 2026.1 is the usual build—and head to Section II → Property Information → Property Status.
- Pick the right 2026 code:
Code Meaning S Property has sold PS Sale is pending R Property is a rental (investment) N Property is new construction - Fill the “ULI” field if DU prompts you (it’s mandatory for most loans these days). Save the record, then export: File → Export → URLA PDF (2026).
- In DU, upload under Loan Details → Documents → URLA and name the file “URLA_2026_v1.3.pdf”. Hit Validate & Submit.
