Section 8

Section 8 of the Uniform Residential Loan Application (URLA) is titled "Demographic Information." This section is intended to gather information about the borrower's ethnicity, sex, and race for the purpose of ensuring fair treatment and fulfilling the housing needs of communities. Here's how a borrower should fill out Section 8:

  1. Introduction: The section explains the purpose of collecting demographic information and assures borrowers that providing this information is voluntary but encouraged. It also states that the information cannot be used for discriminatory purposes.
  2. Ethnicity: The borrower is asked to check one or more boxes that apply to their ethnicity. The options typically include Hispanic or Latino and Not Hispanic or Latino, with the possibility of selecting specific national origins under the Hispanic or Latino category.
  3. Race: Similar to ethnicity, the borrower is asked to check one or more boxes that correspond to their race. Options include American Indian or Alaska Native, Asian, Black or African American, Native Hawaiian or Other Pacific Islander, and White. For some categories, there is also a space provided to print the name of the enrolled or principal tribe.
  4. Sex: The borrower must select their sex by checking the appropriate box, with options including Male, Female, and possibly an option to not provide this information.
  5. Refusal to Provide Information: If the borrower does not wish to provide some or all of this demographic information, they can check the box indicating their choice not to provide it. However, if the application is made in person and the borrower does not provide this information, federal regulations require the lender to note the borrower's ethnicity, sex, and race based on visual observation or surname.

It is important for borrowers to understand that while providing this demographic information is optional, it helps to monitor compliance with equal credit opportunity, fair housing, and home mortgage disclosure laws. If a borrower is uncomfortable providing this information or has questions, they should discuss their concerns with their lender.