SHARE

August 11, 2022

FHFA Announces Mortgage Servicer Requirements for Maintaining Fair Lending Data

You've Reached Your
Free Article Limit This Month
Register for free to get unlimited access to all Law.com OnPractice content.
Register Now

Key Takeaways

  • The fair lending data must be stored in a searchable format, and must transfer with servicing throughout the loan term.

The FHFA announced that Fannie Mae and Freddie Mac will require mortgage servicers to maintain certain fair lending data elements, including the borrower's age, race, ethnicity, gender, and preferred language. The fair lending data must be stored in a searchable format, and must transfer with servicing throughout the loan term.

On the topic, Freddie Mac issued Bulletin 2022-17, and Fannie Mae issued Servicing Guide Announcement SVC-2022-06. These issuances specify that that data elements must be maintained and transferred, if obtained during the origination process, for loans originated on or after March 1, 2023. The issuances also note that servicers may, but are not required to, update the data elements in the event of a subsequent transfer of ownership or assumption of the loan.

While the effective date is March 1, 2023, servicers may implement the changes sooner. We note that the Fannie Mae issuance states that servicers are "encouraged to implement these policy changes immediately".

As previously reported, when the FHFA announced that Fannie Mae and Freddie Mac would require mortgage lenders to request a mortgage applicant's language preference for applications taken on or after March 1, 2023, the CFPB advised that such a request does not violate the Equal Credit Opportunity Act (ECOA).  It would be helpful if the CFPB addressed the permissibility under ECOA of a Fannie Mae and Freddie Mac requirement that mortgage servicers maintain certain fair lending data elements.  ECOA and Regulation B expressly require that creditors collect certain applicant demographic data in connection with mortgage loan applications to be secured by a primary residence.  ECOA and Regulation B do not expressly address the maintenance of such data by mortgage servicers.

ALM expressly disclaims any express or implied warranty regarding the OnPractice Content, including any implied warranty that the OnPractice Content is accurate, has been corrected or is otherwise free from errors.

More From Ballard Spahr

New York Restricts Automated Decision Making in Employment

By Timothy Dickens Ballard Spahr August 29 , 2022

Businesses operating in New York City should be aware of a local law addressing the use of automated employment screening and decision-making tools coming into effect on January 1, 2023.

Status Update: Federal Contractor Vaccine Mandate Injunction Narrowed

By Lila A. Sevener Ballard Spahr August 29 , 2022

On August 26, 2022, the United States Court of Appeals for the Eleventh Circuit narrowed the nationwide injunction of Executive Order 14042, which requires federal contractors and employees who work on or in connection with a covered federal contract, or share a workplace with another employee who works on or in connection with such contracts, to be fully vaccinated against COVID-19.

Unions Cannot Force OSHA to Issue Permanent COVID Standard

By Shannon D. Farmer Ballard Spahr August 26 , 2022

On August 26, 2022, the U.S. Court of Appeals for the District of Columbia Circuit turned back efforts by a group of unions seeking to force the Occupational Safety and Health Administration (OSHA) to quickly issue a permanent rule establishing protections for healthcare workers from COVID-19.

More From Banking & Finance

CO2 Costs for Heating: Starting 1 January 2023, Landlords in Germany Required to Pay a Share

By Dr. Martin Hamer Greenberg Traurig December 02 , 2022

On 25 November 2022, the parliamentary chamber of the German federal states (Bundesrat) cleared the way for the Carbon Dioxide Cost Sharing Act (Kohlendioxidkostenaufteilungsgesetz, CO2KostAufG), which the federal parliament (Bundestag) passed on 10 November 2022.

The 'top-up' (bank) guarantee in a Dutch Scheme - for as long as it lasts…

By Lilian Welling-Steffens Greenberg Traurig November 29 , 2022

The Dutch Scheme allows tenants to restructure their debt, including outstanding rent, outside of formal insolvency proceedings under a court-approved restructuring plan.

Alternative Dispute Resolution (ADR): Considerations for Real Estate Businesses in an Unpredictable Market

By Thijs Elseman Greenberg Traurig November 17 , 2022

Unpredictable market conditions require innovative solutions to tackle business challenges.

Featured Stories
Closeclose
Search
Menu

Working...