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GSEs Provide Supplemental Consumer Information Form

Fannie Mae and Freddie Mac (the “GSEs”) recently published a new Supplemental Consumer Information Form (Form 1103).  The form includes questions regarding homeownership education and language preference, which were previously part of the redesigned Uniform Residential Loan Application (“URLA”) but were removed after industry feedback and made optional in October 2019.

In August 2019, the Federal Housing Finance Agency (“FHFA”) announced that the questions were being removed from the new URLA and would be provided at a later date as a separate form.  The homeownership education question asks if a borrower has completed homeownership education and counseling within the previous 12 months and with which agency. The language preference question allows a borrower to indicate if they would like to communicate in a language other than English.  The section discloses that the mortgage transaction will likely be conducted in English and that language resources may not be available. The FHFA received hundreds of public comments which expressed concerns that the language preference question could create translation expectations and increase the legal risk for lenders.

The GSEs do not require the form and will not collect additional data gained from its use. The form (all or in part) is voluntary for lenders, and completion of the form is voluntary for borrowers.  The GSEs advised that the standardized questions are being made “available for industry use for those who may find value in collecting borrower homeownership education, housing counseling and language preference information.”

 In addition to the English version, Form 1103 is available in five additional languages (Spanish, traditional Chinese, Vietnamese, Korean, and Tagalog) on the GSEs’ URLA webpages and the FHFA’s Mortgage Translations clearinghouse.

Beginning on January 6, 2022, DocMagic will provide the Supplemental Consumer Information Form by request.

If you have any questions, please contact DocMagic Compliance Department.