FHFA Announces Update for Housing Loan Servicers to Maintain Fair Lending Data

The Federal Housing Finance Agency (FHFA) has announced that Fannie Mae and Freddie Mac (the Enterprises) will require loan servicers to obtain and maintain fair lending data on their loans, and for this data to transfer with servicing throughout the mortgage term.

FHFA Director Sandra L. Thompson commented: “The need for collection and maintenance of quality fair lending data is a lesson learned from the foreclosure crisis and COVID-19 response,” 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 fair lending data to be maintained includes borrowers’ age, race, ethnicity, gender, and preferred language. Servicers will be required to implement this change starting on March 1, 2023. This update follows a May 2022 announcement, which requires lenders to collect borrowers’ language preference data.

Specifically, that announcement require lenders to use the Supplemental Consumer Information Form (SCIF) as part of the application process for loans that will be sold to the Enterprises. The SCIF collects info regarding the borrower's language preference, if any, and on any homebuyer education or housing counseling the borrower received, so lenders can better understand borrower needs during the home buying process. Lenders are 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 continue to be voluntary.

The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $7.5 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is available at www.FHFA.gov, on Twitter, @FHFA, YouTube, Facebook, and LinkedIn.

For more information, contact: ​Adam Russell - Adam.Russell@FHFA.gov

Read the August 10, 2022 FHFA release.

Federal Advisory Committee on Affordable, Equitable and Sustainable Housing Formed

The Federal Housing Finance Agency (FHFA) has announced that it will establish a Federal Advisory Committee on Affordable, Equitable and Sustainable Housing to provide guidance to the government about regulatory or policy changes needed to improve those housing issues. The committee's main activities will be the role of FHFA’s regulated entities, including Fannie Mae, Freddie Mac, and the Federal Home Loan Banks (the Government-Sponsored Enterprises, or GSEs) in supporting liquidity and funding in the single-family and multifamily housing markets.

FHFA Director Sandra L. Thompson commented: “The formation of an advisory committee will better position FHFA to fulfill its strategic goal of supporting access to affordable, equitable, and sustainable housing. Today’s announcement exemplifies our commitment to transparency, ongoing dialogue with stakeholders and the public, and thoughtful policymaking that connects equitable access with safety and soundness.”

Following publication in the Federal Register, the FHFA will be seeking applications and nominations for members, prioritizing relevant expertise related to the GSEs. To ensure diversity in the views represented by members, experience in at least one of the following areas will be required: fair housing, fair lending, or civil rights; single-family lending, servicing, development, mortgages, or capital markets; multifamily lending, servicing, development, mortgages, capital markets, or investments (i.e. Low-Income Housing Tax Credits); consumer, tenant, or community advocacy; market technology; state, local, or tribal government housing policies and programs; and academic or non-academic affiliated housing research.

Contact: Ada​m Russell​ - Adam.R​ussell@FHFA.gov

Read the full Federal Register notice for further details.

The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $7.9 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is at www.FHFA.gov, on Twitter, @FHFA, YouTube, Facebook, and LinkedIn.

Read the August 23, 2022 FHFA news release.