CNDC-005 FHA Supplemental Consumer Information Form Requirement

The U.S. Department of Housing and Urban Development (HUD) Published Mortgagee Letter 2023-13 on June 27, 2023 with provisions of their new requirement where FHA will require the use of the Supplemental Consumer Information Form 1103 (SCIF), to collect and report certain information from Borrowers effective with FHA loans with applications dated on or after August 28, 2023.

Background: The SCIF Form collects information about the Borrower(s) preferred language, and any applicable homeownership education, and housing counseling the Borrower may have received, so to this end, FHA is adopting industry-standard requirements regarding the provision of the Fannie Mae/Freddie Mac Form 1103, Supplemental Consumer Information Form (SCIF), to a Borrower at the time of application for an FHA-insured Mortgage commencing on August 28, 2023.

Language Preference – The lender must present the SCIF to one borrower on the loan application and ask the borrower to provide a preferred language for completing the loan transaction. The borrower is not required to select any of the language options in the “Language Preference” section, including “I do not wish to respond.” For loans with multiple borrowers, the lender may determine whether …..