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INVESTMENT GOVERNMENT PROPERTY PRESERVATION
Journal
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GSEs TO REQUIRE
SERVICERS TO
OBTAIN FAIR
LENDING DATA
Starting March 1, 2023, the Federal
Housing Finance Agency (FHFA) announced
that Fannie Mae and Freddie Mac will be
requiring servicers to "obtain and maintain"
fair lending data on their loans. e data that
FHFA and the GSEs will need to gather
includes the borrowers' age, race ethnicity,
gender, and language.
is announcement follows additional
documentation requirements announced
in May that requires lenders to use a
Supplemental Consumer Information Form
(SCIF) as part of the application process
which will gather information about the
borrowers' language preference and any
financial counseling they received before home
purchase so that lenders can better understand
borrower needs during the home buying
process.
"e need for collection and maintenance
of quality fair lending data is a lesson learned
from the foreclosure crisis and COVID-19
response," said Sandra L. ompson, Director
of the FHFA. "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."
As per the SCIF, lenders will be required
to adopt these changes and reporting
requirements for loans with application dates
on or after March 1, 2023. Response by
borrowers to the preferred language question
in the SCIF will remain voluntary.
"As those lenders and financial companies
that already collect the language preference
of applicants and borrowers know, this
information allows lenders to serve their
customers better. e collection of applicants'
language preference does not violate the Equal
Credit Opportunity Act or its implementing
regulations," Consumer Financial Protection
Bureau (CFPB) Director Rohit Chopra said.
"e CFPB is eager to see advances in broader
language access to better serve all borrowers."
