HUD adds translations of mortgage servicing documents

The Department of Housing and Urban Development has created translations of 19 Federal Housing Administration mortgage servicing documents to increase information access to borrowers with limited English proficiency.

These documents are now available in the five primary languages most spoken by U.S. residents other than English: Chinese, Korean, Spanish, Tagalog and Vietnamese.

"We continue to work to remove language access barriers for borrowers with FHA-insured mortgages," said Federal Housing Commissioner Julia Gordon in a press release. "We believe it's critical for borrowers to understand the options for purchasing a home and for accessing assistance if an existing borrower has difficulty in making their mortgage payments."

HUD wants to make sure all homebuyers, especially those in the market for their first house, have access to information about its programs, Adrianne Todman, acting secretary, said in a press release.

"This common-sense action will help families achieve their dream of owning a home," Todman continued. "Today, we are taking a crucial step towards a more inclusive, diverse and equitable generation of homeowners."

Previously, HUD translated 40 origination and homeownership education documents into those same five languages.

Since August 2023, the FHA has required mortgage lenders looking to obtain insurance to file the Supplemental Consumer Information Form, also known as Form 1103, with every application. That form is used to record the borrower's preference for the language they wish to communicate in.

The SCIF was first a Federal Housing Finance Agency requirement for loans submitted to Fannie Mae and Freddie Mac.

While the form needs to be included in the loan file, the borrower can opt to provide all, some or none of the information requested.

In April, the FHFA issued a final rule to codify requirements related to fair lending and preferred language use.