To support sustainability and equity, the Federal Housing Finance Agency (FHFA) has announced that Servicers of federally backed loans will acquire and retain fair lending data. Servicers must begin keeping records of borrowers’ age, color, ethnicity, gender, and preferred language by March 1, 2023. No matter who owns the servicing rights, the data will remain with the loan for the mortgage duration.
The foreclosure crisis and COVID-19 response have shown the Industry the importance of collecting and maintaining high-quality fair lending data, said Sandra Thompson, director of the FHFA. Fair lending information that travels with servicing will aid servicers in supporting borrowers in need and advancing a sustainable and just housing finance system.
The data must be in a queryable format, per the most recent Servicing Guides from Fannie Mae and Freddie Mac. When a servicer transfers the servicing privileges, the data must be given to the new servicer. The new servicer must store the data to supply it in subsequent transfers; however, it is not obliged to update the data points. According to Fannie Mae’s instructions for servicers, the policy modification does not apply to reverse mortgages.
This regulation is similar to one that applies to lenders who sell loans to the GSEs. The FHFA announced earlier this year that starting in March 2023; conventional mortgage lenders must gather information on language preference and housing counseling. To get more detailed information on the FHFA’s implementation of this regulation, click here.
https://www.housingwire.com/articles/fhfa-gse-servicers-must-keep-fair-lending-data/
About Note Servicing Center
Note Servicing Center provides professional, fully compliant loan servicing for private mortgage investors so they can avoid the aggravation of servicing their own loans and just relax and get paid.
Contact us today for more information.
Share This Story, Choose Your Platform!
Related Posts
Disclaimer
The information provided in this article is for general educational and informational purposes only and does not constitute legal, financial, investment, tax, or professional advice. Note Servicing Center, Inc. is a licensed loan servicer and does not provide legal counsel, investment recommendations, or financial planning services. Reading this content does not create an attorney-client, fiduciary, or advisory relationship of any kind.
Nothing in this article constitutes an offer to sell, a solicitation of an offer to buy, or a recommendation regarding any security, promissory note, mortgage note, fractional interest, or other investment product. Any references to notes, yields, returns, or investment structures are illustrative and educational only. Past performance is not indicative of future results, and all investments involve risk, including the potential loss of principal.
Note investing, real estate transactions, and lending activities are subject to federal, state, and local laws that vary by jurisdiction and change over time. Before making any decision based on the information in this article, you should consult with a qualified attorney, licensed financial advisor, certified public accountant, or other appropriate professional who can evaluate your specific circumstances.
While we make reasonable efforts to ensure the accuracy of the information presented, Note Servicing Center, Inc. makes no warranties or representations regarding the completeness, accuracy, or current applicability of any content. We disclaim all liability for actions taken or not taken in reliance on this article.