The Federal Housing Finance Agency has directed Fannie Mae and Freddie Mac to make several changes to the Uniform Residential Loan Application, including the removal of a question asking applicants to indicate their preferred language. ABA has long opposed the inclusion of a language preference question on the loan application form, noting that such a question was likely to confuse or mislead borrowers, and it previously raised concerns about the legal implications for lenders.
As a result of the changes, FHFA also announced that it will postpone the deadlines for the implementation of the URLA and automated underwriting system. FHFA said it plans to assess how the changes will affect the timeline and will provide a new implementation date soon. Read more.