Improving Language Access in Mortgage Servicing Act of 2024
Impact
The enactment of HB8252 is expected to have a profound impact on state laws by increasing the regulatory obligations of creditors and servicers in terms of language access. It mandates that lenders make available essential mortgage documents translated into multiple languages commonly spoken by individuals with limited English proficiency. Additionally, the bill creates a standard language preference form that must be included in mortgage applications, enabling consumers to specify their language needs. This reinforces consumer rights and aims to decrease the inequalities faced by non-English speakers in the mortgage loan process.
Summary
House Bill 8252, titled the 'Improving Language Access in Mortgage Servicing Act of 2024,' seeks to amend the Truth in Lending Act and the Real Estate Settlement Procedures Act of 1974. The primary objective of this bill is to establish language access requirements for creditors and servicers, ensuring that individuals who have a preferred language other than English can receive important mortgage-related information in their native language. This is particularly significant in the context of promoting fairness and accessibility in the housing market, where language barriers often hinder equitable access to mortgage options and home ownership.
Contention
Notable points of contention surrounding HB8252 include concerns from certain industry stakeholders about the potential administrative burden and costs associated with complying with new language access requirements. Critics argue that these requirements may lead to increased operational complexities for lenders, particularly small and community-based firms. On the other hand, advocates assert that the benefits of ensuring equitable access to mortgage services far outweigh these concerns, emphasizing the importance of addressing historical inequities in housing finance stemming from language barriers.
Fair Lending for All Act This bill adds classes of individuals protected under the Equal Credit Opportunity Act.With respect to credit transactions, the bill adds sexual orientation, gender identity, and an applicant's location based on zip code or census tract as classes protected against discrimination. (Currently, discrimination is prohibited on the basis of race, color, religion, national origin, sex, marital status, age, or because an applicant receives public assistance.)The bill establishes criminal penalties for violations of prohibited credit discrimination.The Consumer Financial Protection Bureau is required to review loan applications for compliance with specified consumer laws and to establish an Office of Fair Lending Testing.