Fannie Mae & Freddie Mac – Translating Documents In Another Language

Question:

We have bank statements in Spanish. I’m wondering whether we, as the lender, can fully translate and certify the translation ourselves, or whether we need to engage a third party to translate the bank statement or obtain a fully translated version directly from the bank?

Answer:
Fannie states in Section B3-4.2-05 the following:
“All documents of a foreign origin must be completed in English, or the originator must provide a translation, attached to each document, and ensure the translation is complete and accurate.”

Freddie states in Section 1201.9 the following:

“All documents in the Mortgage file related to the origination of the Mortgage must be in English or must be translated into English by the document originator or an unaffiliated third-party translation service. Such translations must be attached to each non-English document, and the Seller represents and warrants to Freddie Mac that the translation is complete and accurate.”

Conclusion:
For Fannie Mae, the language “originator must provide a translation” suggests the lender is responsible for providing and ensuring the accuracy of the translation, supporting your interpretation that the lender may facilitate this process.

For Freddie Mac, I conclude that the guideline indicates the translation should come from the source of funds (i.e., the bank itself) or an independent professional, not from the lender seeking to close the loan.

Ultimately, your investor or lender should have guidelines for document translation, as the agency holds the lender responsible for accuracy.

References:
Freddie Mac Section 1201.9

Fanne Mac Section B3-4.2-05

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