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X12 transaction guide · Finance

EDI 201 Residential Loan Application

The X12 document used to transfer the data of the Uniform Residential Loan Application between lenders and other parties.

Sent by
Mortgage lender or broker
Received by
Service vendors, insurers, credit agencies or investors
Standard
ANSI ASC X12

What is an EDI 201?

The EDI 201 Residential Loan Application is the ANSI X12 transaction set used to transfer the data contained in the Uniform Residential Loan Application between mortgage lenders, mortgage service vendors, insurance companies, credit reporting agencies and others.

The loan application is the core data set of a mortgage: borrower, employment, income, assets, liabilities, property and loan terms. Sharing it as data lets every party in the process start from the same information. The industry now generally exchanges application data in MISMO XML formats.

How the EDI 201 worksDiagram of the EDI 201 Residential Loan Application. Mortgage lender or broker sends it to service vendors, insurers, credit agencies or investors. It usually starts the exchange. It is usually followed by 198, 199 and 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BGN (Beginning Segment) and the required N1 loop with N1 (Party Identification) and detail: the required LRQ loop with LRQ (Mortgage Characteristics Requested), REF (Reference Information), YNQ (Yes/No Question), N1 (Party Identification), the required PEX loop with PEX (Property or Housing Expense), the required IN1 loop with IN1 (Individual Identification), IN2 (Individual Name Structure Components) and YNQ (Yes/No Question) and the required LX loop with LX (Transaction Set Line Number). 11 optional loops are listed by their first segment.How the EDI 201 worksResidential Loan Application: who sends it, where it fits and what the standard marks required1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 201SENDERMortgage lender orbrokerRECEIVERService vendors,insurers, creditagencies or investors997 or 999 acknowledgment back, if the partners agreeUSUALLY FOLLOWED BY198Loan VerificationInformation199Real Estate SettlementInformation997FunctionalAcknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDsISA … IEAFunctional group, ID code MEGS … GETransaction set 201ST … SEHEADINGBGNBeginning SegmentRequired loop N1 · repeats up to 5N1Party IdentificationDETAILRequired loop LRQ · repeats many timesLRQMortgage Characteristics RequestedREFReference InformationYNQYes/No QuestionN1Party IdentificationRequired loop PEX · repeats up to 20PEXProperty or Housing ExpenseRequired loop IN1 · repeats up to 15IN1Individual IdentificationIN2Individual Name Structure ComponentsYNQYes/No QuestionRequired loop LX · repeats many timesLXTransaction Set Line Number+ 11 optional loops, starting with:NX1AMTAINPEXN1REANM1CDAFAABlue box: required loop. Optional loops are listed by the segment that starts them; when a loop is used, that first segment is required. Optional segmentsoutside loops are not drawn.Structure: required segments and loops in the X12 008010 listing for the 201. Your trading partner's implementation guide adds its own requirements.
How the EDI 201 worksDiagram of the EDI 201 Residential Loan Application. Mortgage lender or broker sends it to service vendors, insurers, credit agencies or investors. It usually starts the exchange. It is usually followed by 198, 199 and 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BGN (Beginning Segment) and the required N1 loop with N1 (Party Identification) and detail: the required LRQ loop with LRQ (Mortgage Characteristics Requested), REF (Reference Information), YNQ (Yes/No Question), N1 (Party Identification), the required PEX loop with PEX (Property or Housing Expense), the required IN1 loop with IN1 (Individual Identification), IN2 (Individual Name Structure Components) and YNQ (Yes/No Question) and the required LX loop with LX (Transaction Set Line Number). 11 optional loops are listed by their first segment.How the EDI 201 worksResidential Loan Application: who sends it,where it fits and what the standard marksrequired1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 201SENDERMortgage lenderor brokerRECEIVERServicevendors,insurers, creditagencies orinvestors997 or 999 acknowledgment back, if the partnersagreeUSUALLY FOLLOWED BY198Loan Verification Information199Real Estate Settlement Information997Functional Acknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDs (ISA… IEA)Functional group, ID code ME (GS … GE)Transaction set 201 (ST … SE)HEADINGBGNBeginning SegmentRequired loop N1 · repeats up to 5N1Party IdentificationDETAILRequired loop LRQ · repeatsmany timesLRQMortgage CharacteristicsRequestedREFReference InformationYNQYes/No QuestionN1Party IdentificationRequired loop PEX · repeatsup to 20PEXProperty or HousingExpenseRequired loop IN1 · repeatsup to 15IN1IndividualIdentificationIN2Individual NameStructure ComponentsYNQYes/No QuestionRequired loop LX · repeatsmany timesLXTransaction Set LineNumber+ 11 optional loops, starting with:NX1AMTAINPEXN1REANM1CDAFAABlue box: required loop. Optional loops are listedby the segment that starts them; when a loop isused, that first segment is required. Optionalsegments outside loops are not drawn.Structure: required segments and loops in the X12008010 listing for the 201. Your trading partner'simplementation guide adds its own requirements.

How to read this diagram: the top row shows who sends the 201, to whom, and which documents usually come before and after it. The lower part shows what X12 release 008010 itself requires: the envelopes around the 201 and the segments and loops the standard marks as required, area by area. Optional loops are listed by the segment that starts them rather than drawn in full. This is the standard's minimum, not a trading partner's requirement: each partner's implementation guide usually makes some optional loops mandatory, restricts the codes and may use a different release.

Expand diagram Download SVG

When it is used

  • Sending applications from brokers to lenders
  • Sharing application data with service providers
  • Submitting applications for automated underwriting

Where it fits in the document flow

This document 201 Residential Loan Application
Usually followed by 198 Loan Verification Information199 Real Estate Settlement Information997 Functional Acknowledgment

Structure

Mandatory segments in the 201 (X12 release 008010)

The segments X12 release 008010 marks as mandatory at their level, in order. Segments inside optional loops are needed only when the loop is used. This is the standard's requirement, not your trading partner's: each partner's implementation guide names the release it uses, adds the optional segments it requires and restricts the values. The requirement status comes from one published X12 reference listing and has not been checked against a second source.

  • ST
  • BGN
  • N1
  • LRQ
  • REF
  • YNQ
  • NX1
  • NX2
  • PEX
  • AMT
  • IN1
  • IN2
  • AIN
  • REA
  • NM1
  • CDA
  • FAA
  • LX
  • SE

Practical example

The 201 in practice

A mortgage broker takes an application from a homebuyer. Its loan origination system sends the lender a 201 with the borrower's details, income, assets, debts and the property and loan requested. The lender loads the application and starts verifications without rekeying.

Implementation

Implementation considerations for the 201

  • Check whether partners use MISMO XML instead of X12.
  • Protect borrowers' personal and financial data.
  • Keep the application data synchronized as it changes.
  • Follow regulatory disclosure requirements.

How ECOM helps

Automate the 201 with ECOM

Industry

Financial Services

Secure file transfer and B2B integration for banks and financial institutions.

Solution

Financial Document Automation

Automate invoices, remittances, payment files and bank statements from capture to posting.

Solution

EDI Integration

Exchange X12 and EDIFACT documents with partners and integrate them directly with your ERP.

More general questions about EDI are answered in the EDI FAQ.

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