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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4265 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 4265
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 SENATE OF THE UNITED STATES
May 7, 2024
Ms. Butler (for herself, Ms. Warren, and Ms. Hirono) introduced the
following bill; which was read twice and referred to the Committee on
Banking, Housing, and Urban Affairs
_______________________________________________________________________
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.
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, disproportionately renting, and
disproportionately paying unaffordable rents, which acts as a
barrier to homeownership.
(3) Access to fair and affordable housing, both rental and
homeownership 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 homeownership, and preserve
their home equity.
SEC. 3. DEFINITIONS.
In this Act:
(1) Creditor.--The term ``creditor''--
(A) has the meaning given the term in section 103
of the Truth in Lending Act (15 U.S.C. 1602); and
(B) includes any assignee of a creditor.
(2) Director.--The term ``Director'' means the Director of
the Bureau of Consumer Financial Protection.
(3) Federally related mortgage loan.--The term ``federally
related mortgage loan'' has the meaning given the term in
section 3 of the Real Estate Settlement Procedures Act of 1974
(12 U.S.C. 2602).
(4) Residential mortgage loan.--The term ``residential
mortgage loan'' has the meaning given the term in section 103
of the Truth in Lending Act (15 U.S.C. 1602).
(5) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(6) Servicer.--The term ``servicer'' has the meaning given
the term in section 6(i) of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2605(i)).
SEC. 4. 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 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 that 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 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 under paragraph (1), the
Director of the Bureau shall consider the document
conveys information--
``(i) about credit terms and conditions;
and
``(ii) relating to borrower rights,
obligations, or entitlements under the terms of
the loan or applicable laws.
``(2) Translation.--The Director of the Bureau, 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
enactment of this section, publish model translations
of each document designated as a vital document under
this subsection in each of the 8 languages most
commonly spoken by individuals with limited English
proficiency, as determined by the Director using
information published by the Director of the Bureau of
the Census; and
``(B) not later than 3 years after the date of
enactment of this section, publish versions of the
vital documents described in subparagraph (A)
translated into not fewer than 4 language other than
those languages described in such subparagraph spoken
by individuals with limited English proficiency that
are regionally prevalent in the United States, as
determined by the Director 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 the form required under subparagraph (A) a
disclosure stating that documents and services may not
be available in the preferred language indicated by the
consumer on the 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, the creditor or assignee shall--
``(i) document the language preference in
each file or electronic file of information
associated with the consumer; and
``(ii) shall transfer the information and
the form to--
``(I) any servicer of the loan; and
``(II) 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), the
creditor shall--
``(A) provide to the consumer the translation in
addition to any English version of the vital document
that would have been provided to the consumer who
indicated the preferred language; and
``(B) include a notice in 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 form established under subsection (a),
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,
the creditor shall provide oral interpretation services
to the consumer.
``(B) Oral interpretation services.--If a creditor
is required under subparagraph (A) to provide oral
interpretation services to a consumer, the creditor--
``(i) 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 creditor and
the consumer; and
``(ii) may provide provide the services
described in clause (i) through 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 form established under subsection (a), 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, the creditor shall, not later
than 10 business days after receiving the information, notify
the 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, the creditor shall notify the transferee
servicer of any known language preference of the consumer
associated with the residential mortgage loan.
``(6) Information on website.--Each creditor shall publish
on the website of the creditor--
``(A) links to and explanatory information about
the websites maintained by the Secretary of Housing and
Urban Development and the Director of the Bureau 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, 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 4(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 (12 U.S.C. 2605) is amended by adding
at the end the following:
``(n) Language Access Requirements.--
``(1) Definition.--In this subsection, 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.
``(2) Requirements.--
``(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 information required under
subsection (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 determines is 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 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, the servicer or assignee shall document
the language preference in each file or electronic file
of information associated with the borrower and shall
transfer the information and the standard language
preference form to any other servicer that may service
the loan in the future.
``(3) 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 (2)(C)
of this subsection, the servicer shall--
``(i) provide to the consumer the
translation in addition to any English version
of the document that would have been provided
to the borrower; and
``(ii) include in the English and
translated versions a notice, 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,
the servicer shall provide oral interpretation
services to the borrower.
``(ii) Oral interpretation services.--If a
servicer is required to provide oral
interpretation services under clause (i), the
servicer--
``(I) 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 servicer and
the borrower; and
``(II) may provide the services
described in subclause (I) through
qualified staff of the borrower or a
qualified third party.
``(4) 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, the servicer shall, not later
than 10 business days after receiving the information, notify
the borrower in writing, in the preferred language of the
borrower, of any language services available, including the
services required under paragraph (3).
``(5) Transfer of language preference information.--If a
servicer transfers the servicing associated with a federally
related mortgage loan, the servicer shall notify the transferee
servicer of any known language preference of the borrower
associated with the federally related mortgage loan.
``(6) Information on website.--Each servicer shall publish
on the website of the servicer--
``(A) links to and information about the websites
maintained by the Secretary of Housing and Urban
Development and the Director of the Bureau 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, 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 4(e) of the Improving Language
Access in Mortgage Servicing Act of 2024.
``(7) Rulemaking.--The Director of the Bureau may issue
such rules as the Director determines necessary to implement
this section.''.
(c) Technical and Conforming 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 enactment of
this Act, and annually thereafter, the Director, 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 to Congress a report that contains--
(1) regulatory recommendations to enhance mortgage
origination and servicing processes for individuals 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 described in paragraph (1); and
(3) a description of any progress on the implementation of
any legislative change or regulatory recommendation made in a
previous report.
(e) Language Resource Website.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Director, 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 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, as added by subsection (a) of this section;
(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 individuals who have a preferred language that is
not English; and
(D) examples of notices that may be used by
creditors and servicers to inform individuals of
available language services provided in accordance with
section 129I of the Truth in Lending Act, as added by
subsection (a) of this section, and section 6(n)(2) of
the Real Estate Settlement Procedures Act of 1974, as
added by subsection (b) of this section.
(f) Advisory Group.--
(1) In general.--The Director 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 individuals
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, as added by subsection (a)
of this section; and
(C) updates to the language resource website
established by the Director, 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 shall consult with
the advisory group established under paragraph (1) with respect
to any issues that arise relating to mortgage origination and
servicing processes for individuals with a preferred language
that is not English.
(g) Housing Counseling Agency Language Resources.--
(1) Enhanced search capabilities.--
(A) HUD.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Housing and
Urban Development shall 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 the
agencies provide.
(B) Bureau.--Not later than 1 year after the date
of enactment of this Act, the Director shall 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 the housing counseling agencies provide.
(2) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary such sums as are necessary
to support language training for housing counselors approved by
the Department of Housing and Urban Development, counseling
agencies, and staff.
<all>
Introduced in Senate
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
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