[House Report 117-370]
[From the U.S. Government Publishing Office]
117th Congress } { Rept. 117-370
HOUSE OF REPRESENTATIVES
2d Session } { Part 1
======================================================================
IMPROVING LANGUAGE ACCESS IN MORTGAGE SERVICING ACT OF 2021
_______
June 15, 2022.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Ms. Waters, from the Committee on Financial Services, submitted the
following
R E P O R T
[To accompany H.R. 3009]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred
the bill (H.R. 3009) 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, having considered the same, reports
favorably thereon with an amendment and recommends that the
bill as amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 6
Background and Need for Legislation.............................. 6
Section-by-Section Analysis of the Legislation................... 7
Hearings......................................................... 8
Committee Consideration.......................................... 8
Committee Votes.................................................. 8
Committee Oversight Findings..................................... 11
Statement of Performance Goals and Objectives.................... 11
New Budget Authority and C.B.O. Cost Estimate.................... 11
Committee Cost Estimate.......................................... 14
Federal Mandates Statement....................................... 14
Advisory Committee Statement..................................... 14
Applicability to Legislative Branch.............................. 14
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits....................................................... 14
Duplicative Federal Programs..................................... 14
Changes to Existing Law.......................................... 15
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Improving Language Access in Mortgage
Servicing Act of 2021''.
SEC. 2. 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 Commissioner
of the Federal Housing Authority, 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) 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 documents.--If a Federal agency
or a State or local agency in the State or locality in which
the residential property is located has produced a translation
of a document used in association with a residential mortgage
loan in the preferred language of a consumer documented by a
creditor pursuant to paragraph (1)(C), such creditor shall--
``(A) provide such translation in addition to any
English version of such 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 1(e) of the Improving Language
Access in Mortgage Servicing Act of 2021.
``(c) Translation of Mortgage Documents.--With respect to each
document published by the Federal Housing Finance Agency, the Bureau of
Consumer Financial Protection, the Department of Housing and Urban
Development, the Department of Veterans Affairs, and the Department of
Agriculture and used in association with a residential mortgage loan
transaction, including origination and servicing documents, the
Director of the Bureau of Consumer Financial Protection and the
Director of the Federal Housing Finance Agency shall jointly--
``(1) not later than 180 days after the date of the enactment
of this section, publish versions of such documents translated
into each of the 8 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
``(2) not later than 3 years after the date of the enactment
of this section, publish versions of such 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.
``(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 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 translation of a document used in associated
with a federally related mortgage loan in the preferred
language of a borrower as documented by the servicer
pursuant to paragraph (1)(C), 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 1(e) of the Improving Language Access in
Mortgage Servicing Act of 2021.
``(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; and
(B) the development of the standard language
preference form by the Director under section 129I(a)
of the Truth in Lending Act;
(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.
Purpose and Summary
On May 7, 2021, Representative Garcia introduced H.R. 3009,
the ``Improving Language Access in Mortgage Servicing Act of
2021'', which would amend the Truth in Lending Act (TILA) and
the Real Estate Settlement Procedures Act of 1974 (RESPA) to
establish language access requirements for creditors and
servicers to better serve borrowers with limited English
proficiency. Under the bill, the Consumer Financial Protection
Bureau (CFPB) would be required to create a standard language
preference form to be used by creditors and servicers to track
language preferences and transfer such information with the
loan. The CFPB and Federal Housing Finance Agency (FHFA) would
also be required to work jointly to translate federal documents
used in association with residential mortgage loan transactions
from English into the eight languages most commonly spoken by
individuals in the U.S. The bill would also require relevant
federal agencies to establish and maintain a language resources
website for mortgage originators and servicers, as well as to
improve existing websites that include information for
consumers about language services provided by housing
counseling agencies.
Background and Need for Legislation
According to the latest data from the U.S. Census Bureau,
over 20 percent of U.S. households speak a language other than
English, there are over 380 languages spoken in the U.S., and
nearly 9 percent of households speak English ``less than very
well.'' Other than English, the top 8 languages spoken by
households between 2016 and 2018 were: Spanish, Chinese,
Vietnamese, Korean, Russian, Arabic, Tagalog, and Polish. While
the financial services industry is largely centered on serving
English-speaking consumers, ensuring language access in housing
finance will help households with limited English proficiency
(LEP), such as among immigrant communities, have equal access
to mortgage lending products and services, and receive adequate
documentation and servicing in their preferred language.
During the Great Recession, many LEP homeowners lost their
homes to scams and foreclosure due to information gaps created
by a lack of adequate servicing and documentation translated in
their preferred language. During the current COVID-19 pandemic
and economic downturn, millions of homeowners are in
forbearance or behind on their mortgage payments, with the
threat of foreclosure once forbearance periods expire. As of
April 2020, 24.7 million people in the U.S. were unemployed,
with immigrants and Latinas experiencing some of the sharpest
decreases in employment in the U.S. This bill will ensure that
servicers and creditors covered under TILA and RESPA provide
LEP borrowers with translated documents, interpretation
services, and notice of other resources available in borrowers'
preferred languages. These changes will ensure equal treatment
and fair lending access, especially as the industry prepares to
move homeowners through critical loss mitigation processes to
avoid unnecessary foreclosures in the wake of COVID-19.
Section-by-Section Analysis
Section 1. Short title
This section establishes the short title of the bill as
``Improving Language Access in Mortgage Servicing Act of
2021.''
Section 2. Language access requirements and resources
This section amends the Truth in Lending Act
(TILA) and the Real Estate Settlement Procedures Act of
1974 (RESPA) to require the CFPB (through rulemaking
authority), in consultation with the Federal Housing
Administration (FHA), the Department of Agriculture
(USDA), and the Federal Housing Finance Agency (FHFA),
to establish language access requirements for creditors
and servicers to better serve borrowers with limited
English proficiency, including by:
Establishing a standard language
preference form that is to be translated into
the top eight most commonly spoken languages by
individuals with limited English proficiency,
as determined by the U.S. Census Bureau.
Requiring creditors and
servicers to share the standard language
preference form with borrowers to track
language preferences and transfer such
information with the loan, disclose when
language services are not available, and
provide oral translations to ensure borrowers
receive information and services in their
preferred language.
Requiring creditors and
servicers to publish links and explanatory
information regarding HUD-approved housing
counseling and federal language resources.
The CFPB and FHFA would also be required to
work jointly to translate federal documents used in
association with residential mortgage loan transactions
from English into the eight languages most commonly
spoken by individuals in the U.S. within 180 days of
enactment and into at least an additional 4 regionally
prevalent languages not later than 3 years after
enactment.
The CFPB, Department of Housing and Urban
Development (HUD), FHFA, USDA, and Department of
Veterans Affairs (VA) would be required to submit a
report to Congress within one year of enactment and
annually thereafter. The report would include
recommended regulations to enhance mortgage origination
and servicing processes for LEP borrowers, as well as a
description of any necessary legislative changes and of
progress toward implementation of prior
recommendations.
The CFPB, HUD, FHFA, USDA, and VA would be
required to set up a website to provide language
resources for creditors, servicers, and consumers,
including translated mortgage documents, a glossary of
relevant terms, guidance for creditors and servicers,
and translated sample notices of language services.
The CFPB would be required to establish a
stakeholder advisory group to advise the Bureau on
language access in housing finance transactions.
The CFPB and HUD would be required to
enhance their websites to allow for searching housing
counseling agencies by what language services they
provide. This section also authorizes appropriations
for language training of HUD-approved housing
counselors, counseling agencies, and staff.
Hearings
For the purposes of section 3(c)(6) of House rule XIII, the
Committee on Financial Services' full Committee held a hearing
to consider H.R. 3009 entitled, ``Justice for All: Achieving
Racial Equity through Fair Access to Housing and Financial
Services''' on March 10, 2021.
Committee Consideration
The Committee on Financial Services met in open session on
May 12, 2021 and ordered H.R. 3009 to be reported favorably to
the House with an amendment in the nature of a substitute by a
vote of 29 yeas and 24 nays, a quorum being present.
Committee Votes and Roll Call Votes
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, the Committee advises that the
following roll call votes occurred during the Committee's
consideration of H.R. 2543: An amendment offered by Mr.
Loudermilk, no. 6a, was NOT AGREED TO by a recorded vote of 25
ayes and 28 nays. Ordered reported to the House, as amended,
with a favorable recommendation by a recorded vote of 29 ayes
and 24 nays.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the Committee's oversight findings and recommendations are
reflected in the descriptive portions of this report.
Statement of Performance Goals and Objectives
Pursuant to clause (3)(c) of rule XIII of the Rules of the
House of Representatives, the goals of H.R. 3009 are to amend
the Truth in Lending Act (TILA) and the Real Estate Settlement
Procedures Act of 1974 (RESPA) to establish language access
requirements for creditors and servicers to better serve
borrowers with limited English proficiency.
New Budget Authority and CBO Cost Estimate
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the
House of Representatives and section 308(a) of the
Congressional Budget Act of 1974, and pursuant to clause
3(c)(3) of rule XIII of the Rules of the House of
Representatives and section 402 of the Congressional Budget Act
of 1974, the Committee has received the following estimate for
H.R. 3009 from the Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, March 8, 2022.
Hon. Maxine Waters,
Chairwoman, Committee on Financial Services,
House of Representatives, Washington, DC.
Dear Madam Chairwoman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3009, the
Improving Language Access in Mortgage Servicing Act of 2021.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is David Hughes.
Sincerely,
Phillip L. Swagel,
Director.
Enclosure.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
The bill would
Require the Consumer Financial Protection
Agency (CFPB) to create a standardized form to track
borrowers' language preferences in the mortgage
process, translate federal mortgage documents into
other languages, and update their website, among other
responsibilities
Impose private-sector mandates by requiring
creditors and mortgage servicers to provide consumers
with access to translators and other language-based
resources
Estimated budgetary effects would mainly stem from
Increases in direct spending by the CFPB to
implement the bill's requirements
Increases in spending subject to
appropriation for the Department of Housing and Urban
Development to provide language training.
Bill summary: H.R. 3009 would require the Consumer
Financial Protection Bureau (CFPB) to undertake several
projects and activities jointly with other federal agencies--
the Federal Housing Finance Agency (FHFA) and the Departments
of Housing and Urban Development (HUD), Agriculture, and
Veterans Affairs--as follows:
Issue rules to establish a form that
mortgage loan creditors and servicers would use to
document consumers' language preferences throughout the
mortgage process,
Translate federal documents related to
residential mortgage loan transactions from English
into 12 other languages,
Report annually to the Congress on
recommendations to improve the mortgage process for
consumers with limited English proficiency,
Establish and maintain a website to provide
language resources for mortgage loan creditors,
servicers, and consumers, and
Update their websites to allow users to
search for housing counseling agencies based on the
language services they provide.
H.R. 3009 also would require the CFPB to establish a group
to advise the bureau on providing foreign-language resources to
mortgage consumers and would require HUD to provide language
training for housing counselors, counseling agencies, and their
staff.
Estimated Federal cost: The estimated budgetary effect of
H.R. 3009 is shown in Table 1. The costs of the legislation
fall within budget functions 370 (commerce and housing credit)
and 600 (income security).
TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 3009
--------------------------------------------------------------------------------------------------------------------------------------------------------
By Fiscal Year, Millions of Dollars
-----------------------------------------------------------------------------------------------------
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2022-2026 2022-2031
--------------------------------------------------------------------------------------------------------------------------------------------------------
Increases in Direct Spending
Estimated Budget Authority........................ * 3 2 1 1 1 1 1 1 2 7 13
Estimated Outlays................................. * 3 2 1 1 1 1 1 1 2 7 13
--------------------------------------------------------------------------------------------------------------------------------------------------------
CFPB = Consumer Financial Protection Bureau; * = between zero and $500,000.
Implementing the bill also would increase spending subject to appropriation by less than $500,000 in each year and by $2 million over the 2022-2026
period.
Basis of estimate: CBO assumes that H.R. 3009 would be
enacted near the end of 2022. CBO estimates that enacting H.R.
3009 would increase direct spending by $13 million over the
2022-2031 period and would increase spending subject to
appropriation by $2 million over the 2022-2026 period.
Direct spending: Because the CFPB has permanent authority,
not subject to annual appropriation, to spend amounts
transferred from the Federal Reserve, enacting the bill would
increase direct spending. Using information from the CFPB, CBO
estimates that spending would increase by $13 million over the
2022-2031 period. That amount comprises $2 million for four
employees to issue new rules over two years; $2 million to
translate documents; $6 million for information technology and
staffing to establish, maintain, and update websites; and $3
million to establish and support the advisory group.
CBO expects that any costs to FHFA under the bill would be
insignificant because the agency could implement the bill's
requirements with existing staff and resources.
Spending subject to appropriation: CBO estimates that
implementing the bill would increase spending subject to
appropriation by $2 million over the 2022-2026 period, mostly
for HUD to provide language training and update its website.
The other departments would incur insignificant costs from
consulting with the CFPB.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures are shown in Table 1.
Increase in long-term deficits: CBO estimates that enacting
H.R. 3009 would not increase on-budget deficits by more than $5
billion in any of the four consecutive 10-year periods
beginning in 2032.
Mandates: H.R. 3009 would impose private-sector mandates as
defined in the Unfunded Mandates Reform Act (UMRA) by requiring
creditors and mortgage servicers to provide consumers with
access to translators and other language-based resources. CBO
has determined that the aggregate costs of the mandates would
not exceed the thresholds established in UMRA for private-
sector mandates ($170 million in 2021, adjusted annually for
inflation).
H.R. 3009 contains no intergovernmental mandates as defined
in UMRA.
Estimate prepared by: Federal Costs: David Hughes (CFPB);
Elizabeth Cove Delisle (HUD). Mandates: Fiona Forrester.
Estimate reviewed by: Justin Humphrey, Chief, Finance,
Housing, and Education Cost Estimates Unit; Kathleen
FitzGerald, Chief, Public and Private Mandates Unit; H. Samuel
Papenfuss, Deputy Director of Budget Analysis; Theresa Gullo,
Director of Budget Analysis.
Committee Cost Estimate
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison of the
costs that would be incurred in carrying out H.R. 3009.
However, clause 3(d)(2)(B) of that rule provides that this
requirement does not apply when the committee has included in
its report a timely submitted cost estimate of the bill
prepared by the Director of the Congressional Budget Office
under section 402 of the Congressional Budget Act.
Unfunded Mandate Statement
Pursuant to Section 423 of the Congressional Budget and
Impoundment Control Act (as amended by Section 101(a)(2) of the
Unfunded Mandates Reform Act, Pub. L. 104-4), the Committee
adopts as its own the estimate of federal mandates regarding
H.R. 3009, as amended, prepared by the Director of the
Congressional Budget Office.
Advisory Committee
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Application of Law to the Legislative Branch
Pursuant to section 102(b)(3) of the Congressional
Accountability Act, Pub. L. No. 104-1, H.R. 3009, as amended,
does not apply to terms and conditions of employment or to
access to public services or accommodations within the
legislative branch.
Earmark Statement
In accordance with clause 9 of rule XXI of the Rules of the
House of Representatives, H.R. 3009 does not contain any
congressional earmarks, limited tax benefits, or limited tariff
benefits as described in clauses 9(e), 9(f), and 9(g) of rule
XXI.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee states that no
provision of H.R. 3009 establishes or reauthorizes a program of
the Federal Government known to be duplicative of another
federal program, a program that was included in any report from
the Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139, or a program related to a
program identified in the most recent Catalog of Federal
Domestic Assistance. .
Changes to Existing Law
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, H.R. 3009, as reported, are shown as follows:
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italics and existing law in which no change is
proposed is shown in roman):
TRUTH IN LENDING ACT
* * * * * * *
TITLE I--CONSUMER CREDIT COST DISCLOSURE
* * * * * * *
CHAPTER 2--CREDIT TRANSACTIONS
Sec.
* * * * * * *
129I. Language access requirements.
* * * * * * *
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 Commissioner of the Federal
Housing Authority, 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) 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 documents.--If a Federal
agency or a State or local agency in the State or
locality in which the residential property is located
has produced a translation of a document used in
association with a residential mortgage loan in the
preferred language of a consumer documented by a
creditor pursuant to paragraph (1)(C), such creditor
shall--
(A) provide such translation in addition to
any English version of such 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 1(e) of the
Improving Language Access in Mortgage Servicing
Act of 2021.
(c) Translation of Mortgage Documents.--With respect to each
document published by the Federal Housing Finance Agency, the
Bureau of Consumer Financial Protection, the Department of
Housing and Urban Development, the Department of Veterans
Affairs, and the Department of Agriculture and used in
association with a residential mortgage loan transaction,
including origination and servicing documents, the Director of
the Bureau of Consumer Financial Protection and the Director of
the Federal Housing Finance Agency shall jointly--
(1) not later than 180 days after the date of the
enactment of this section, publish versions of such
documents translated into each of the 8 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
(2) not later than 3 years after the date of the
enactment of this section, publish versions of such
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.
(d) Rulemaking.--The Director may issue such rules as the
Director determines necessary to implement this section.
* * * * * * *
----------
REAL ESTATE SETTLEMENT PROCEDURES ACT OF 1974
* * * * * * *
servicing of mortgage loans and administration of escrow accounts
Sec. 6. (a) Disclosure to Applicant Relating to Assignment,
Sale, or Transfer of Loan Servicing.--Each person who makes a
federally related mortgage loan shall disclose to each person
who applies for the loan, at the time of application for the
loan, whether the servicing of the loan may be assigned, sold,
or transferred to any other person at any time while the loan
is outstanding.
(b) Notice by Transferor or Loan Servicing at Time of
Transfer.--
(1) Notice requirement.--Each servicer of any
federally related mortgage loan shall notify the
borrower in writing of any assignment, sale, or
transfer of the servicing of the loan to any other
person.
(2) Time of notice.--
(A) In general.--Except as provided under
subparagraphs (B) and (C), the notice required
under paragraph (1) shall be made to the
borrower not less than 15 days before the
effective date of transfer of the servicing of
the mortgage loan (with respect to which such
notice is made).
(B) Exception for certain proceedings.--The
notice required under paragraph (1) shall be
made to the borrower not more than 30 days
after the effective date of assignment, sale,
or transfer of the servicing of the mortgage
loan (with respect to which such notice is
made) in any case in which the assignment,
sale, or transfer of the servicing of the
mortgage loan is preceded by--
(i) termination of the contract for
servicing the loan for cause;
(ii) commencement of proceedings for
bankruptcy of the servicer; or
(iii) commencement of proceedings by
the Federal Deposit Insurance
Corporation or the Resolution Trust
Corporation for conservatorship or
receivership of the servicer (or an
entity by which the servicer is owned
or controlled).
(C) Exception for notice provided at
closing.--The provisions of subparagraphs (A)
and (B) shall not apply to any assignment,
sale, or transfer of the servicing of any
mortgage loan if the person who makes the loan
provides to the borrower, at settlement (with
respect to the property for which the mortgage
loan is made), written notice under paragraph
(3) of such transfer.
(3) Contents of notice.--The notice required under
paragraph (1) shall include the following information:
(A) The effective date of transfer of the
servicing described in such paragraph.
(B) The name, address, and toll-free or
collect call telephone number of the transferee
servicer.
(C) A toll-free or collect call telephone
number for (i) an individual employed by the
transferor servicer, or (ii) the department of
the transferor servicer, that can be contacted
by the borrower to answer inquiries relating to
the transfer of servicing.
(D) The name and toll-free or collect call
telephone number for (i) an individual employed
by the transferee servicer, or (ii) the
department of the transferee servicer, that can
be contacted by the borrower to answer
inquiries relating to the transfer of
servicing.
(E) The date on which the transferor servicer
who is servicing the mortgage loan before the
assignment, sale, or transfer will cease to
accept payments relating to the loan and the
date on which the transferee servicer will
begin to accept such payments.
(F) Any information concerning the effect the
transfer may have, if any, on the terms of or
the continued availability of mortgage life or
disability insurance or any other type of
optional insurance and what action, if any, the
borrower must take to maintain coverage.
(G) A statement that the assignment, sale, or
transfer of the servicing of the mortgage loan
does not affect any term or condition of the
security instruments other than terms directly
related to the servicing of such loan.
(c) Notice by Transferee of Loan Servicing at Time of
Transfer.--
(1) Notice requirement.--Each transferee servicer to
whom the servicing of any federally related mortgage
loan is assigned, sold, or transferred shall notify the
borrower of any such assignment, sale, or transfer.
(2) Time of notice.--
(A) In general.--Except as provided in
subparagraphs (B) and (C), the notice required
under paragraph (1) shall be made to the
borrower not more than 15 days after the
effective date of transfer of the servicing of
the mortgage loan (with respect to which such
notice is made).
(B) Exception for certain proceedings.--The
notice required under paragraph (1) shall be
made to the borrower not more than 30 days
after the effective date of assignment, sale,
or transfer of the servicing of the mortgage
loan (with respect to which such notice is
made) in any case in which the assignment,
sale, or transfer of the servicing of the
mortgage loan is preceded by--
(i) termination of the contract for
servicing the loan for cause;
(ii) commencement of proceedings for
bankruptcy of the servicer; or
(iii) commencement of proceedings by
the Federal Deposit Insurance
Corporation or the Resolution Trust
Corporation for conservatorship or
receivership of the servicer (or an
entity by which the servicer is owned
or controlled).
(C) Exception for notice provided at
closing.--The provisions of subparagraphs (A)
and (B) shall not apply to any assignment,
sale, or transfer of the servicing of any
mortgage loan if the person who makes the loan
provides to the borrower, at settlement (with
respect to the property for which the mortgage
loan is made), written notice under paragraph
(3) of such transfer.
(3) Contents of notice.--Any notice required under
paragraph (1) shall include the information described
in subsection (b)(3).
(d) Treatment of Loan Payments During Transfer Period.--
During the 60-day period beginning on the effective date of
transfer of the servicing of any federally related mortgage
loan, a late fee may not be imposed on the borrower with
respect to any payment on such loan and no such payment may be
treated as late for any other purposes, if the payment is
received by the transferor servicer (rather than the transferee
servicer who should properly receive payment) before the due
date applicable to such payment.
(e) Duty of Loan Servicer To Respond to Borrower Inquiries.--
(1) Notice of receipt of inquiry.--
(A) In general.--If any servicer of a
federally related mortgage loan receives a
qualified written request from the borrower (or
an agent of the borrower) for information
relating to the servicing of such loan, the
servicer shall provide a written response
acknowledging receipt of the correspondence
within 5 days (excluding legal public holidays,
Saturdays, and Sundays) unless the action
requested is taken within such period.
(B) Qualified written request.--For purposes
of this subsection, a qualified written request
shall be a written correspondence, other than
notice on a payment coupon or other payment
medium supplied by the servicer, that--
(i) includes, or otherwise enables
the servicer to identify, the name and
account of the borrower; and
(ii) includes a statement of the
reasons for the belief of the borrower,
to the extent applicable, that the
account is in error or provides
sufficient detail to the servicer
regarding other information sought by
the borrower.
(2) Action with respect to inquiry.--Not later than
30 days (excluding legal public holidays, Saturdays,
and Sundays) after the receipt from any borrower of any
qualified written request under paragraph (1) and, if
applicable, before taking any action with respect to
the inquiry of the borrower, the servicer shall--
(A) make appropriate corrections in the
account of the borrower, including the
crediting of any late charges or penalties, and
transmit to the borrower a written notification
of such correction (which shall include the
name and telephone number of a representative
of the servicer who can provide assistance to
the borrower);
(B) after conducting an investigation,
provide the borrower with a written explanation
or clarification that includes--
(i) to the extent applicable, a
statement of the reasons for which the
servicer believes the account of the
borrower is correct as determined by
the servicer; and
(ii) the name and telephone number of
an individual employed by, or the
office or department of, the servicer
who can provide assistance to the
borrower; or
(C) after conducting an investigation,
provide the borrower with a written explanation
or clarification that includes--
(i) information requested by the
borrower or an explanation of why the
information requested is unavailable or
cannot be obtained by the servicer; and
(ii) the name and telephone number of
an individual employed by, or the
office or department of, the servicer
who can provide assistance to the
borrower.
(3) Protection of credit rating.--During the 60-day
period beginning on the date of the servicer's receipt
from any borrower of a qualified written request
relating to a dispute regarding the borrower's
payments, a servicer may not provide information
regarding any overdue payment, owed by such borrower
and relating to such period or qualified written
request, to any consumer reporting agency (as such term
is defined under section 603 of the Fair Credit
Reporting Act).
(4) Limited extension of response time.--The 30-day
period described in paragraph (2) may be extended for
not more than 15 days if, before the end of such 30-day
period, the servicer notifies the borrower of the
extension and the reasons for the delay in responding.
(f) Damages and Costs.--Whoever fails to comply with any
provision of this section shall be liable to the borrower for
each such failure in the following amounts:
(1) Individuals.--In the case of any action by an
individual, an amount equal to the sum of--
(A) any actual damages to the borrower as a
result of the failure; and
(B) any additional damages, as the court may
allow, in the case of a pattern or practice of
noncompliance with the requirements of this
section, in an amount not to exceed $2,000.
(2) Class actions.--In the case of a class action, an
amount equal to the sum of--
(A) any actual damages to each of the
borrowers in the class as a result of the
failure; and
(B) any additional damages, as the court may
allow, in the case of a pattern or practice of
noncompliance with the requirements of this
section, in an amount not greater than $2,000
for each member of the class, except that the
total amount of damages under this subparagraph
in any class action may not exceed the lesser
of--
(i) $1,000,000; or
(ii) 1 percent of the net worth of
the servicer.
(3) Costs.--In addition to the amounts under
paragraph (1) or (2), in the case of any successful
action under this section, the costs of the action,
together with any attorneys fees incurred in connection
with such action as the court may determine to be
reasonable under the circumstances.
(4) Nonliability.--A transferor or transferee
servicer shall not be liable under this subsection for
any failure to comply with any requirement under this
section if, within 60 days after discovering an error
(whether pursuant to a final written examination report
or the servicer's own procedures) and before the
commencement of an action under this subsection and the
receipt of written notice of the error from the
borrower, the servicer notifies the person concerned of
the error and makes whatever adjustments are necessary
in the appropriate account to ensure that the person
will not be required to pay an amount in excess of any
amount that the person otherwise would have paid.
(g) Administration of Escrow Accounts.--If the terms of any
federally related mortgage loan require the borrower to make
payments to the servicer of the loan for deposit into an escrow
account for the purpose of assuring payment of taxes, insurance
premiums, and other charges with respect to the property, the
servicer shall make payments from the escrow account for such
taxes, insurance premiums, and other charges in a timely manner
as such payments become due. Any balance in any such account
that is within the servicer's control at the time the loan is
paid off shall be promptly returned to the borrower within 20
business days or credited to a similar account for a new
mortgage loan to the borrower with the same lender.
(h) Preemption of Conflicting State Laws.--Notwithstanding
any provision of any law or regulation of any State, a person
who makes a federally related mortgage loan or a servicer shall
be considered to have complied with the provisions of any such
State law or regulation requiring notice to a borrower at the
time of application for a loan or transfer of the servicing of
a loan if such person or servicer complies with the
requirements under this section regarding timing, content, and
procedures for notification of the borrower.
(i) Definitions.--For purposes of this section:
(1) Effective date of transfer.--The term ``effective
date of transfer'' means the date on which the mortgage
payment of a borrower is first due to the transferee
servicer of a mortgage loan pursuant to the assignment,
sale, or transfer of the servicing of the mortgage
loan.
(2) Servicer.--The term ``servicer'' means the person
responsible for servicing of a loan (including the
person who makes or holds a loan if such person also
services the loan). The term does not include--
(A) the Federal Deposit Insurance Corporation
or the Resolution Trust Corporation, in
connection with assets acquired, assigned,
sold, or transferred pursuant to section 13(c)
of the Federal Deposit Insurance Act or as
receiver or conservator of an insured
depository institution; and
(B) the Government National Mortgage
Association, the Federal National Mortgage
Association, the Federal Home Loan Mortgage
Corporation, the Resolution Trust Corporation,
or the Federal Deposit Insurance Corporation,
in any case in which the assignment, sale, or
transfer of the servicing of the mortgage loan
is preceded by--
(i) termination of the contract for
servicing the loan for cause;
(ii) commencement of proceedings for
bankruptcy of the servicer; or
(iii) commencement of proceedings by
the Federal Deposit Insurance
Corporation or the Resolution Trust
Corporation for conservatorship or
receivership of the servicer (or an
entity by which the servicer is owned
or controlled).
(3) Servicing.--The term ``servicing'' means
receiving any scheduled periodic payments from a
borrower pursuant to the terms of any loan, including
amounts for escrow accounts described in section 10,
and making the payments of principal and interest and
such other payments with respect to the amounts
received from the borrower as may be required pursuant
to the terms of the loan.
(j) Transition.--
(1) Originator liability.--A person who makes a
federally related mortgage loan shall not be liable to
a borrower because of a failure of such person to
comply with subsection (a) with respect to an
application for a loan made by the borrower before the
regulations referred to in paragraph (3) take effect.
(2) Servicer liability.--A servicer of a federally
related mortgage loan shall not be liable to a borrower
because of a failure of the servicer to perform any
duty under subsection (b), (c), (d), or (e) that arises
before the regulations referred to in paragraph (3)
take effect.
(3) Regulations and effective date.--The Bureau shall
establish any requirements necessary to carry out this
section. Such regulations shall include the model
disclosure statement required under subsection (a)(2).
(k) Servicer Prohibitions.--
(1) In general.--A servicer of a federally related
mortgage shall not--
(A) obtain force-placed hazard insurance
unless there is a reasonable basis to believe
the borrower has failed to comply with the loan
contract's requirements to maintain property
insurance;
(B) charge fees for responding to valid
qualified written requests (as defined in
regulations which the Bureau of Consumer
Financial Protection shall prescribe) under
this section;
(C) fail to take timely action to respond to
a borrower's requests to correct errors
relating to allocation of payments, final
balances for purposes of paying off the loan,
or avoiding foreclosure, or other standard
servicer's duties;
(D) fail to respond within 10 business days
to a request from a borrower to provide the
identity, address, and other relevant contact
information about the owner or assignee of the
loan; or
(E) fail to comply with any other obligation
found by the Bureau of Consumer Financial
Protection, by regulation, to be appropriate to
carry out the consumer protection purposes of
this Act.
(2) Force-placed insurance defined.--For purposes of
this subsection and subsections (l) and (m), the term
``force-placed insurance'' means hazard insurance
coverage obtained by a servicer of a federally related
mortgage when the borrower has failed to maintain or
renew hazard insurance on such property as required of
the borrower under the terms of the mortgage.
(l) Requirements for Force-placed Insurance.--A servicer of a
federally related mortgage shall not be construed as having a
reasonable basis for obtaining force-placed insurance unless
the requirements of this subsection have been met.
(1) Written notices to borrower.--A servicer may not
impose any charge on any borrower for force-placed
insurance with respect to any property securing a
federally related mortgage unless--
(A) the servicer has sent, by first-class
mail, a written notice to the borrower
containing--
(i) a reminder of the borrower's
obligation to maintain hazard insurance
on the property securing the federally
related mortgage;
(ii) a statement that the servicer
does not have evidence of insurance
coverage of such property;
(iii) a clear and conspicuous
statement of the procedures by which
the borrower may demonstrate that the
borrower already has insurance
coverage; and
(iv) a statement that the servicer
may obtain such coverage at the
borrower's expense if the borrower does
not provide such demonstration of the
borrower's existing coverage in a
timely manner;
(B) the servicer has sent, by first-class
mail, a second written notice, at least 30 days
after the mailing of the notice under
subparagraph (A) that contains all the
information described in each clause of such
subparagraph; and
(C) the servicer has not received from the
borrower any demonstration of hazard insurance
coverage for the property securing the mortgage
by the end of the 15-day period beginning on
the date the notice under subparagraph (B) was
sent by the servicer.
(2) Sufficiency of demonstration.--A servicer of a
federally related mortgage shall accept any reasonable
form of written confirmation from a borrower of
existing insurance coverage, which shall include the
existing insurance policy number along with the
identity of, and contact information for, the insurance
company or agent, or as otherwise required by the
Bureau of Consumer Financial Protection.
(3) Termination of force-placed insurance.--Within 15
days of the receipt by a servicer of confirmation of a
borrower's existing insurance coverage, the servicer
shall--
(A) terminate the force-placed insurance; and
(B) refund to the consumer all force-placed
insurance premiums paid by the borrower during
any period during which the borrower's
insurance coverage and the force-placed
insurance coverage were each in effect, and any
related fees charged to the consumer's account
with respect to the force-placed insurance
during such period.
(4) Clarification with respect to flood disaster
protection act.--No provision of this section shall be
construed as prohibiting a servicer from providing
simultaneous or concurrent notice of a lack of flood
insurance pursuant to section 102(e) of the Flood
Disaster Protection Act of 1973.
(m) Limitations on Force-placed Insurance Charges.--All
charges, apart from charges subject to State regulation as the
business of insurance, related to force-placed insurance
imposed on the borrower by or through the servicer shall be
bona fide and reasonable.
(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 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 translation of
a document used in associated with a federally
related mortgage loan in the preferred language
of a borrower as documented by the servicer
pursuant to paragraph (1)(C), 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 1(e) of the Improving
Language Access in Mortgage Servicing Act of
2021.
(7) Rulemaking.--The Director of the Bureau of
Consumer Financial Protection may issue such rules as
the Director determines necessary to implement this
section.
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