The Department of Housing and Urban Development has produced translations of 19 Federal Housing Administration mortgage servicing documents to improve access to information for borrowers with limited English proficiency.
These documents are currently available in the five major languages other than English most commonly spoken by U.S. residents: Chinese, Korean, Spanish, Tagalog and Vietnamese.
“We continue to work to remove language access barriers for borrowers of FHA-insured mortgages,” Federal Housing Administrator Julia Gordon said in a press release. “We believe it's critical that borrowers understand their options for buying a home and that existing borrowers can get help if they're having difficulty making their mortgage payments.”
HUD wants to ensure that all homebuyers, especially those looking to buy a home for the first time, have access to information about the department's programs, Acting Secretary Adrienne Todman said in a press release.
“This common sense action will help families realize their dreams of homeownership,” Todman continued. “Today, we take an important step toward a generation of more inclusive, diverse and equitable homeownership.”
Previously, HUD translated 40 homebuying and homeownership educational documents into the same five languages.
Beginning in August 2023, the FHA will require mortgage lenders seeking to obtain insurance to submit a Supplemental Consumer Information Form with every application, also known as Form 1103. This form is used to record a borrower's preferred communication language.
The SCIF was originally a Federal Housing Finance Administration requirement for loans submitted to Fannie Mae and Freddie Mac.
The form must be included in the loan file, but the borrower may choose to provide all, some, or none of the information requested.
In April, FHFA issued a final rule codifying requirements regarding fair lending and the use of preference language.