No official summary available for this bill.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8252 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 8252
To amend the Truth in Lending Act and the Real Estate Settlement
Procedures Act of 1974 to establish language access requirements for
creditors and servicers, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 6, 2024
Ms. Garcia of Texas introduced the following bill; which was referred
to the Committee on Financial Services, and in addition to the
Committee on Veterans' Affairs, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Truth in Lending Act and the Real Estate Settlement
Procedures Act of 1974 to establish language access requirements for
creditors and servicers, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Improving Language Access in
Mortgage Servicing Act of 2024''.
SEC. 2. FINDINGS.
The Congress finds the following:
(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.
SEC. 3. LANGUAGE ACCESS REQUIREMENTS AND RESOURCES.
(a) In General.--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:
``Sec. 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.''.
(b) Requirements for Servicers.--Section 6 of the Real Estate
Settlement Procedures Act of 1974 is amended by adding at the end the
following:
``(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.''.
(c) Clerical Amendment.--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:
``129I. Language access requirements.''.
(d) Report.--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.
(e) Language Resource Website.--
(1) In general.--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.
(2) Website requirements.--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.
(f) Advisory Group.--
(1) In general.--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).
(2) Required consulting.--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.
(g) Housing Counseling Agency Language Resources.--
(1) Enhanced search capabilities.--
(A) HUD.--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.
(B) Bureau.--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.
(2) Authorization of appropriations.--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.
(h) Definitions.--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.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Financial Services, and in addition to the Committee on Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committee on Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Economic Opportunity.
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