FHA Loan Borrowers Will Fill Out New Form
After Aug. 28, FHA borrowers will fill out a Supplemental Consumer Information Form, where they can request things like language translation services.
WASHINGTON – Starting on Aug. 28, 2023, the Federal Housing Administration (FHA) will require lenders to use the Supplemental Consumer Information Form (SCIF) when originating mortgages for FHA insurance.
The SCIF (Fannie Mae/Freddie Mac Form 1103) is an industry-recognized form that allows borrowers to voluntarily identify language preferences and provide information on any housing counseling and education. They may provide all, some or none of the information requested on the form. The SCIF will be required for loan applications dated on or after August 28, 2023.
The form, according to FHA, will tell lenders or mortgage servicers if the applicant would prefer a language other than English. It will also offer some insight into the borrower’s understanding of the homebuying and mortgage lending processes.
“Borrowers should be able to fully understand their options and obligations when they are seeking mortgage financing,” says Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon. “The SCIF is an important means of obtaining information to assess the breadth of education and language needs of borrowers so that lenders can best meet their needs.”
For FHA, information from borrowers’ SCIFs will help it get an aggregate view of language preferences, which will influence future actions to keep breaking down language and other barriers to homeownership.
After Aug. 28, lenders with prospective borrowers seeking FHA-insured Title II forward mortgage financing must present the SCIF to borrowers as part of the mortgage application process. Lenders will also transmit any information a borrower provides to FHA as part of its required loan application data submissions.
“The SCIF has already been adopted for conventional mortgages, and we believe that its use is even more important for FHA-insured mortgages, given FHA’s outsized role in providing access to mortgage financing for underserved populations,” says Deputy Assistant Secretary for Single Family Housing Sarah Edelman.
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