[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.
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