Improving Language Access in Mortgage Servicing Act of 2024

(1) Housing is the largest portion of most household budgets in the United States and therefore a foundational component of financial access and opportunity.

(2) Due in part to a legacy of discrimination in the United States, people of color are disproportionately experiencing homelessness, are disproportionately renting, and disproportionately paying unaffordable rents, which acts as a barrier to home ownership.

(3) Access to fair and affordable housing, both rental and home ownership opportunities, is critical to upward economic mobility. This includes addressing language barriers in mortgage servicing to ensure borrowers have culturally sensitive, in-language access to critical lending information, can enter into fair and sustainable home ownership, and preserve their home equity.

Chapter 2 of title I of the Truth in Lending Act (15 U.S.C. 1631 et seq.) is amended by inserting after section 129H the following:

Not later than 90 days after the date of the enactment of this section, the Director of the Bureau of Consumer Financial Protection shall, after consulting with the Secretary of Agriculture, the Director of the Federal Housing Finance Agency, the Secretary of Veterans Affairs, and the Secretary of Housing and Urban Development, by rule, establish a standard language preference form which includes a standard language preference question asked in each of the 8 languages most commonly spoken by individuals with limited English proficiency, as determined by the Director of the Bureau using information published by the Director of the Bureau of the Census.

Not later than 90 days after the date of the enactment of this section, the Director of the Bureau of Consumer Financial Protection shall, after consulting with the Secretary of Agriculture, the Director of the Federal Housing Finance Agency, the Secretary of Veterans Affairs, and the Secretary of Housing and Urban Development, by rule, establish a list of vital documents associated with the origination and servicing of residential mortgage loans.

In determining which documents are vital documents pursuant to paragraph (1), the Director shall consider—

(i) whether the document conveys information about credit terms and conditions;

(ii) whether the document conveys information relating to borrower rights and obligations under applicable laws; and

(iii) whether the document conveys information relating to a change in borrower rights, obligations, or entitlements under the terms of the loan or applicable laws.

The Director of the Bureau of Consumer Financial Protection, the Director of the Federal Housing Finance Agency, the Secretary of the Department of Housing and Urban Development, the Secretary of Veterans Affairs, and the Secretary of the Department of Agriculture shall jointly—

(A) not later than 180 days after the date of the enactment of this section, publish model translations of each document designated as a vital document under this subsection in the eight languages most commonly spoken by individuals with limited English proficiency, as determined by the Director of the Bureau of Consumer Financial Protection using information published by the Director of the Bureau of the Census; and

(B) not later than 3 years after the date of the enactment of this section, publish versions of such vital documents translated into at least 4 additional languages spoken by individuals with limited English proficiency that are regionally prevalent in the United States, as determined by the Director of the Bureau of Consumer Financial Protection using information published by the Director of the Bureau of the Census.

Each creditor shall include, in any written application used in connection with a residential mortgage loan, the standard language preference form established by the Director of the Bureau under subsection (a).

Each creditor may include with such standard language preference form a disclosure stating that documents and services may not be available in the preferred language indicated by the consumer on the standard language preference form.

If a creditor, or assignee of a creditor receives information about a language preference of a consumer through the standard language preference form, orally or in writing in connection with a residential mortgage loan, as determined by the Director of the Bureau, including from another creditor or a servicer, such creditor or assignee shall document this language preference in each file or electronic file of information associated with such consumer and shall transfer such information and the standard language preference form to any servicer of the loan and to any creditor that may own the loan in the future.

If a Federal agency or a State or local agency in the State or locality in which the residential property subject to the residential mortgage loan is located has produced a model translation for a document designated as a vital document under subsection (b), in the preferred language of a consumer, as documented by a creditor pursuant to paragraph (1)(C), such creditor shall—

(A) provide such translation in addition to any English version of such vital document that would have been provided to such consumer who indicated such preferred language; and

(B) include a notice on the English and translated versions indicating that the English version is the official and operative document and the translated version is for informational purposes only.

If a creditor receives information about a language preference of a consumer through the standard language preference form, orally or in writing in connection with a residential mortgage loan, as determined by the Director of the Bureau, including from another creditor or a servicer, such creditor shall provide oral interpretation services to such consumer.

If a creditor is required under subparagraph (A) to provide oral interpretation services to a consumer, such creditor shall ensure qualified oral interpretation services, as defined by the Director of the Bureau, are made available in the preferred language of the consumer for all oral communications between the such creditor and the consumer and these oral interpretation services may be provided by qualified staff of the creditor or a qualified third party.

If a creditor receives information about a language preference of a consumer through the standard language preference form, orally or in writing in connection with a residential mortgage loan, as determined by the Director of the Bureau, including from another creditor or a servicer, such creditor shall not later than 10 business days after receiving such information, notify such consumer in writing, in the preferred language of the consumer, of any language services available, including the services required under paragraphs (2) and (3).

If a creditor transfers the servicing associated with a residential mortgage loan, such creditor shall notify the transferee servicer of any known language preference of the consumer associated with such residential mortgage loan.

Each creditor shall on the website of the creditor publish—

(A) links to and explanatory information about the websites maintained by the Secretary of Housing and Urban Development and the Director of the Bureau of Consumer Financial Protection that identify housing counselors approved by the Department of Housing and Urban Development; and

(B) a link to and explanatory information about the language resources website established by the Director of the Bureau of Consumer Financial Protection, the Secretary of Housing and Urban Development, the Director of the Federal Housing Finance Agency, the Secretary of Agriculture, and the Secretary of Veterans Affairs under section 3(e) of the Improving Language Access in Mortgage Servicing Act of 2024.

The Director may issue such rules as the Director determines necessary to implement this section.

Section 6 of the Real Estate Settlement Procedures Act of 1974 is amended by adding at the end the following:

Each servicer shall include the standard language preference form with—

(i) any notice required under section 1024.39(b) of title 12, Code of Federal Regulations;

(ii) any notice required under section (c);

(iii) any notice required under section 1024.41(b)(2) of title 12, Code of Federal Regulations;

(iv) any notice required under section 1024.41(c)(2)(iii) of title 12, Code of Federal Regulations; and

(v) any other additional notice as the Director of the Bureau of Consumer Financial Protection determines necessary.

A servicer may include with the standard language preference form a disclosure stating that documents and services may not be available in the preferred language of the borrower indicated by the consumer on the standard language preference form.

If a servicer or an assignee of a servicer receives information about a language preference of a borrower through the standard language preference form, orally or in writing in connection with a federally related mortgage, as determined by the Director of the Bureau, including from another servicer or creditor, such servicer or assignee shall document this language preference in each file or electronic file of information associated with such borrower and shall transfer such information and the standard language preference form to any other servicer that may service the loan in the future.

If a Federal agency or a State or local agency in the State or locality in which the property subject to the federally related mortgage loan is to be located has produced a model translation for a document designated as a vital document under section 129I(b) of the Truth in Lending Act in the preferred language of a borrower documented by the servicer pursuant to paragraph (1)(C) of this subsection, the servicer shall—

(i) provide such translation in addition to any English version of such document that would have been provided to such borrower; and

(ii) include a notice on the English and translated versions, in the preferred language of the borrower, indicating that the English version is the official and operative document and the translated version is for informational purposes only.

If a servicer receives information about a language preference of a borrower through the standard language preference form, orally or in writing in connection with a federally related mortgage, as determined by the Director of the Bureau, including from another creditor or a servicer, such servicer shall provide oral interpretation services to such borrower.

If a servicer is required under subparagraph (A) to provide oral interpretation services to a borrower, such servicer shall ensure qualified oral interpretation services, as defined by the Director of the Bureau, are made available in the preferred language of the borrower for all oral communications between the such servicer and the borrower and these oral interpretation services may be provided by qualified staff of the borrower or a qualified third party.

If a servicer receives information about a language preference of a borrower through the standard language preference form, orally or in writing in connection with a federally related mortgage, as determined by the Director of the Bureau, including from another creditor or a servicer, such servicer shall, not later than 10 business days after receiving such information, notify such borrower in writing, in the preferred language of the borrower, of any language services available, including the services required under paragraph (2).

If a servicer transfers the servicing associated with a federally related mortgage loan, such servicer shall notify the transferee servicer of any known language preference of the borrower associated with such federally related mortgage loan.

The term standard language preference form means the standard language preference form established by the Director of the Bureau under section 129I of the Truth in Lending Act.

Each servicer shall on the website of the servicer publish—

(A) links to and information about the websites maintained by the Secretary of Housing and Urban Development and the Director of the Bureau of Consumer Financial Protection that identify housing counselors approved by the Department of Housing and Urban Development; and

(B) a link to and information about the language resources website established by the Director of the Bureau of Consumer Financial Protection, the Secretary of Housing and Urban Development, the Director of the Federal Housing Finance Agency, the Secretary of Agriculture, and the Secretary of Veterans Affairs under section 3(e) of the Improving Language Access in Mortgage Servicing Act of 2024.

The Director of the Bureau of Consumer Financial Protection may issue such rules as the Director determines necessary to implement this section.

The table of sections in chapter 2 of the Truth in Lending Act (15 U.S.C. 1631 et seq.) is amended by inserting after the item relating to section 129H the following:

Not later than 1 year after the date of the enactment of this section, and each year thereafter, the Director of the Bureau of Consumer Financial Protection, the Secretary of Housing and Urban Development, the Director of the Federal Housing Finance Agency, the Secretary of Agriculture, and the Secretary of Veterans Affairs shall submit a report to the Congress that contains—

(1) regulatory recommendations to enhance mortgage origination and servicing processes for persons with a preferred language that is not English;

(2) a description of any legislative changes needed to provide authority necessary to implement the regulatory recommendations; and

(3) a description of any progress on the implementation of any legislative or regulatory recommendation made in a previous report.

The Director of the Bureau of Consumer Financial Protection, the Secretary of Housing and Urban Development, the Director of the Federal Housing Finance Agency, the Secretary of Agriculture, and the Secretary of Veterans Affairs shall jointly not later than 1 year after the date of the enactment of this section establish and maintain a website that provides language resources for creditors, servicers, and consumers.

The website developed pursuant to paragraph (1) shall include—

(A) the translations of documents published pursuant to section 129I(c) of the Truth in Lending Act;

(B) a glossary of terms relating to residential mortgage loans and federally related mortgage loans, provided in each commonly spoken language;

(C) guidance for creditors and servicers working with persons who have a preferred language that is not English; and

(D) examples of notices that may be used by creditors and servicers to inform persons of available language services, provided in accordance with section 6(n)(2) of the Real Estate Settlement Procedures Act of 1974 and section 129I of the Truth in Lending Act.

The Director of the Bureau of Consumer Financial Protection shall establish an advisory group consisting of stakeholders, including industry groups, consumer groups, civil rights groups, and groups that have experience improving language access in housing finance transactions, to provide advice to the Director about—

(A) issues that arise relating to mortgage origination and servicing processes for persons with a preferred language that is not English;

(B) the development of the standard language preference form by the Director under section 129I(a) of the Truth in Lending Act; and

(C) updates to the language resource website established by the Director of the Bureau of Consumer Financial Protection, the Secretary of Housing and Urban Development, the Director of the Federal Housing Finance Agency, the Secretary of Agriculture, and the Secretary of Veterans Affairs under subsection (e).

The Director of the Bureau of Consumer Financial Protection shall consult with the advisory group established pursuant to paragraph (1) with respect to any issues that arise relating to mortgage origination and servicing processes for persons with a preferred language that is not English.

The Secretary of Housing and Urban Development shall not later than 1 year after the date of the enactment of this section update the website maintained by the Secretary that identifies housing counselors approved by the Department of Housing and Urban Development, to allow for searching for housing counseling agencies based on the language services they provide.

The Director of the Bureau of Consumer Financial protection shall not later than 1 year after the date of the enactment of this section update the website maintained by the Director that identifies housing counselors approved by the Department of Housing and Urban Development, to allow for searching for housing counseling agencies based on the language services they provide.

There is authorized to be appropriated to the Secretary of the Department of Housing and Urban Development, such sums as are necessary to support language training for HUD-approved housing counselors, counseling agencies, and their staff.

In this section—

(1) The term creditor has the meaning given the term in section 103 of the Truth in Lending Act and shall include any assignee of a creditor.

(2) The term director means the Director of the Bureau of Consumer Financial Protection.

(3) The term servicer has the meaning given the term in section 6(i) of the Real Estate Settlement Procedures Act of 1974.

(4) The term residential mortgage loan has the meaning given the term in section 103 of the Truth in Lending Act.

(5) The term federally related mortgage loan has the meaning given the term in section 3 of the Real Estate Settlement Procedures Act of 1974.