CUNA joined with several other trade organizations this week to raise compliance and legal concerns with the Federal Housing Finance Agency’s (FHFA) potential change to the new Uniform Residential Loan Application (URLA). The change would add a question asking borrowers to indicate their language preference.
“While we support a range of efforts to ensure that borrowers are well informed during the mortgage process, the inclusion of such a question on the redesigned form raises several serious compliance and legal concerns that strongly weigh against including it on the form or, at the very least, warrant a full vetting through a notice and comment process before its inclusion,” the letter reads.
Specifically, CUNA and the other organizations believe a language question on the URLA would:
The letter, addressed to FHFA Director Mel Watt, was also signed by the American Bankers Association, Consumer Bankers Association, Consumer Mortgage Coalition, Housing Policy Council, Independent Community Bankers of America, Mortgage Bankers Association and National Association of Federal Credit Unions.