The Federal Housing Finance Agency (FHFA) notes that Fannie Mae and Freddie Mac will require mortgage lenders and servicers to transmit fair lending information to servicers with other loan information.
According to the FHFA, the requirement will include a borrower’s language preference, with data to be maintained containing the
borrowers’ age, race, ethnicity, and gender, and transferred with servicing throughout the mortgage term.
“The need for collection and maintenance of quality fair lending data is a lesson learned from the foreclosure crisis and COVID-19 response,” FHFA Director Sandra L. Thompson said. “Having fair lending data travel with servicing will help servicers do the important work of providing assistance to borrowers in need, helping to further a sustainable and equitable housing finance system.”
The servicer requirement is slated to be implemented on March 1, 2023, following a May 2022 announcement indicating lenders would collect borrowers’ language preference data.
Senate Committee on Banking, Housing and Urban Affairs Chairman Sherrod Brown (D-OH) recently commended FHFA for requiring lenders to collect a borrower’s language preference and housing counseling information when they apply for a mortgage.
“It’s common sense – if you’re talking with a homeowner or trying to help them get back on track with their payments, you should know what language they’re most comfortable with,” Brown said in a statement regarding the FHFA maintenance requirements.
Brown said the action would ensure the nation’s housing system serves all eligible homebuyers.