Improving Language Access in Mortgage Servicing Act of 2024

“129I. Language access requirements.

“(a) Standard language preference form—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.

“(b) Designation and translation of vital documents

“(1) Designation

“(A) In general—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.

“(B) Considerations—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.

“(2) Translation—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.

“(c) Requirements for creditors

“(1) Use of standard language preference form by creditors

“(A) Inclusion in application—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).

“(B) Inclusion of disclosure—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.

“(C) Documentation and transfer of preferred language information—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.

“(2) Provision of translated vital documents—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.

“(3) Oral interpretation services

“(A) In general—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.

“(B) Oral interpretation services—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.

“(4) Notice of available language services—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).

“(5) Transfer of language preference information—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.

“(6) Information on website—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.

“(d) Rulemaking—The Director may issue such rules as the Director determines necessary to implement this section.”

“(n) Language access requirements

“(1) In general

“(A) Inclusion in notices—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.

“(B) Inclusion of disclosures—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.

“(C) Documentation and transfer of preferred language information—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.

“(2) Required language services for servicers

“(A) Provision of translated vital documents—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.

“(B) Oral interpretation services

“(i) In general—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.

“(ii) Oral interpretation services—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.

“(3) Notice of available language services—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).

“(4) Transfer of language preference information—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.

“(5) Standard language preference form defined—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.

“(6) Information on website—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.

“(7) Rulemaking—The Director of the Bureau of Consumer Financial Protection may issue such rules as the Director determines necessary to implement this section.”