WASHINGTON –A half-dozen-plus consumer groups are praising an announcement by the Federal Housing Finance Agency’s (FHFA) that Fannie Mae and Freddie Mac will make it mandatory for lenders provide borrowers information in their preferred language.
Specifically, the new rule requires Fannie Mae and Freddie Mac to use the Supplementary Consumer Information Form (SCIF) during the loan application process.
The groups announcing their support of the decision include the National Consumer Law Center, Unidos US, Empire Justice Center, National Fair Housing Alliance and more.
“We are pleased to see FHFA recognize the need to create a more inclusive home buying experience for borrowers with limited English proficiency,” said Sarah Bolling Mancini, staff attorney at the National Consumer Law Center. “Asking about the borrowers’ preferred language is the necessary first step to identifying the tools and assistance needed to make the dream of homeownership more attainable for all communities.”
The Change
The organizations noted the SCIF asks applicants to identify their preferred language for communications regarding the mortgage loan, if available.
Previously, the FHFA had included the language preference on the Uniform Residential Loan Application (URLA), after an extensive process of seeking feedback from industry stakeholders regarding key steps for financial inclusion of borrowers with limited English proficiency (LEP). The question was removed from the redesigned URLA suddenly in 2019 and was eventually published on the SCIF, along with a question about whether the applicant has received homeownership education or housing counseling.
FHFA publishes the SCIF in English, Spanish, Chinese, Korean, Vietnamese, and Tagalog on its Mortgage Translations Clearinghouse, along with a host of other translated documents.
“For the more than 16 million Latinos with limited-English proficiency and other LEP groups, the mandatory use of SCIF is an imperative step to ensure they are afforded the opportunity to attain homeownership,” said Laura MacCleery, senior director of Public Policy, UnidosUS, the nation’s largest Latino civil rights and advocacy organization.