A redesigned mortgage application first unveiled last year by the government-sponsored enterprises has received a safe-harbor blessing from the Consumer Financial Protection Bureau.
In August 2016, Fannie Mae and Freddie Mac revealed a redesigned Uniform Residential Loan Application. It was the first time in more than two decades that the form was redesigned.
On Friday, Fannie and Freddie, under the conservatorship of the Federal Housing Finance Agency, issued an update to the application that included an additional question about an applicant’s language preference.
Prior to the planned Jan. 1, 2018, implementation date, the application needed to undergo a safe-harbor review by the CFPB.
The bureau has reviewed the final redesigned application and found that it is in compliance.
On Monday, the CFPB disclosed a notice about the new application that is being published in the Federal Register pursuant to section 706(e) of the Equal Credit Opportunity Act.
The notice indicated that the revised form was found by the CFPB to be in compliance with Regulation B, the implementing regulation for ECOA.
“This notice (bureau official approval) constitutes such an interpretation or approval, and therefore section 706(e) protects a creditor from civil liability under ECOA for any act done or omitted in good faith in conformity with this notice.”
The Federal Register filing and the redesigned application is online at www.consumerfinance.gov.
