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FHA translates dozens of mortgage docs into new languages

The move is designed to assist lenders and servicers whose borrowers have limited proficiency in English

The Federal Housing Administration (FHA) announced this week that it has translated over 30 single-family mortgage documents and related resources for FHA-insured mortgage origination into several additional languages, including Chinese, Korean, Spanish, Tagalog and Vietnamese. These documents were previously available in English and Spanish.

The documents include some that are relevant to the Home Equity Conversion Mortgage (HECM) program, including the HUD Addendum to the Uniform Residential Loan Application (HUD 92900-A) required for all FHA-insured single family mortgages; model documents like mortgage notes and riders used in FHA forward and HECM transactions; and required borrower disclosures.

juliagordon_fha
Julia Gordon

“Understanding the products, processes, and documents associated with a mortgage transaction is vital to a borrower’s ability to become a successful homeowner,” said FHA Commissioner Julia Gordon in a statement. “These new resources will help prospective homebuyers better understand their transaction and make more informed decisions before they are at the closing table.”

Form HUD-92901-HECM, or the HECM Anti-Churning Disclosure, is among the translated documents. This document requires lenders to provide homeowners who want to refinance a HECM with the total cost of the new mortgage based on the projected total future loan balance.

“The lender must disclose all fees and charges associated with the refinance of the HECM, provide the borrower with the new maximum mortgage limit, and estimate the new funding that will be available to the borrower,” the form states.

The full list includes a series of mortgage documents and riders, loss mitigation documents and FHA homebuying information resources and a series of documents related to “Dispelling Homebuying Myths,” with specific topics including single-family homes, income limits, changed jobs and student loan debt.

There are also documents intended to assist with avoiding foreclosures.

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