Mortgage Disclosure Form Now Translated in Five Languages

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The Department of Business Oversight (DBO) has posted to its website translated mortgage disclosure forms in Spanish, Chinese, Tagalog, Vietnamese, and Korean. These forms can be used by a financial organization that negotiates primarily in any of the above languages the modification of any of the terms of a loan or extension of credit secured by residential real property. 

The forms are available for download at DBO’s Master Forms page under Form # DBO-CRMLA 8019.  The forms available are the CFPB Closing Disclosure Form, Fannie Mae Loan Modification Form (for fixed and variable rates), and the Fannie Mae Mortgage Modification, Re-amortization or Extension Form.

There is pending legislation, SB 1201 by Senator Hannah-Beth Jackson, that will require a supervised financial organization that negotiates the modification of a residential mortgage loan primarily in one of the above languages to give the borrower a written disclosure of the modified terms of the loan in the same language as the negotiation.  The bill has not been signed into law yet, but the League anticipates that it will be signed into law by the Governor and be effective Jan. 1, 2019.  The League negotiated amendments to SB 1201 to require the DBO to provide translated forms.  In that the bill has not been signed into law yet, these forms are not yet mandatory, but they are available to use now and when the bill becomes effective.    

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