In recent years, there has been a growing recognition of the importance of providing services in a borrower's preferred language. To that end, the Federal Housing Finance Agency (FHFA) has updated its regulations to require lenders to capture a borrower's preferred language for loans with application dates on or after March 1, 2023.
"Collecting language preference and housing counseling information provides mortgage applicants with an additional method to inform lenders of their needs, enabling the industry to more fully respond to the nation's growing diversity," said FHFA Acting Director Sandra L. Thompson. " These steps will contribute to an equitable housing finance system that welcomes all qualified borrowers."
Now, with the new FHFA requirement, LenderLogix has updated our LiteSpeed Point of Sale to ensure compliance and make it easier for borrowers to choose their preferred language. The new update to LiteSpeed includes a language preference selection screen that appears during the mortgage application process.
Using the same UX best practices prevalent throughout the entire LiteSpeed application, borrowers can easily choose their preferred language from a set of options that match the SCIF Form 1103 or the borrower can enter their preferred language in free form text field. The borrower (and co-borrower) selection will then be saved in the standard fields in the lender's Loan Origination System.
This update to LiteSpeed is a significant step forward for mortgage lenders who want to comply with the FHFA's language preference requirement. With this update, lenders can provide a better experience for borrowers who speak languages other than English, while also streamlining their own processes and ensuring compliance with regulatory requirements. Whether you are a small mortgage broker or a large lending institution, if you're using Encompass®, LiteSpeed is a powerful tool that can help you serve your borrowers better and grow your business.