Fannie Mae and Freddie Mac Announce Use of Form 1103
Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac will require lenders to use the Supplemental Consumer Information Form (“SCIF”) as part of the application process for loans sold to either Fannie Mae or Freddie Mac. The SCIF collects information about a borrower’s preferred language and whether the borrower has received homebuyer education or housing counseling.
The SCIF must be provided on loans with application dates on or after March 1, 2023. Lenders must present the SCIF questions to borrowers and report any data collected to the purchaser of the loan. Responses by the borrower remain voluntary.
Fannie Mae
On July 6, 2022, Fannie Mae issued Lender Letter 2022-03. In the Lender Letter, Fannie Mae requires lenders to present the form to borrowers and report any data collected to Fannie Mae.
Homeownership Education and Housing Counseling – The lender and the borrower should complete the education and counseling sections if required by Selling Guide B2-2-06, or if the borrower obtained education or counseling even if not required for the specific transaction.
Language Preference – The lender must present the form to the borrower to provide a language preference, but the borrower is not required to make a selection.
If lenders are not already using the form, they may begin using the form immediately. For loans with an application date beginning March 1, 2023, a copy of the form must be maintained in the loan file and data shared with Fannie Mae via Desktop Underwriter.
Freddie Mac
On July 6, 2022, Freddie Mac issued Bulletin 2022-15. A record of Form 1103 must be present in the mortgage file beginning with mortgages sold to Freddie Mac with application received dates on or after March 1, 2023.
Homeownership Education and Housing Counseling – This section of Form 1103 must be completed if required by the loan program or product for which the borrower has applied.
Language Preference – The lender must present the form to the borrower to provide a preferred language, but the borrower is not required to select any of the language options.