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72 with residential mortgage applications and certain notices related to a mortgage loan. » Upon notice of a consumer's language preference, creditors and servicers must provide (1) oral interpretation services; and (2) translated documents, if available. » e CFPB and the Federal Housing Finance Agency must publish translated documents used in association with a residential mortgage. If passed, the law will have a significant impact on originators' and servicers' operations. Proposed on May 7, it was already reported out of committee for consideration by the House, but no action has been taken as of September 2021. Whether it's this bill or the next, a federal mandate to improve language access for LEP borrowers is on the horizon. Both the Biden administration and Congress are focused on efforts to provide additional resources and protections to LEP borrowers. If they aren't already doing so, servicers should start providing language resources and assistance to LEP borrowers now. BEST PRACTICES FOR SERVICERS To provide better customer service to LEP borrowers and comply with regulations and guidelines, mortgage servicers should: » Know the Rules. Keeping up with new regulatory requirements is particularly important during times of rapid change. Servicers should be familiar with the state laws, CFPB guidelines and/or any new federal legislation related to language access for LEP borrowers. Call center representatives should be trained how to respond to callers who need assistance in another language. » Be Familiar with Available Resources. ere are many language resources already available to help mortgage servicers and their borrowers, and more will likely be coming. As forbearance ends, servicers must provide information about repayment options and preventing foreclosure in borrowers' preferred language. » Share Language Resources with LEP Borrowers. Understanding the complicated mortgage process is challenging for many borrowers—even without a language barrier. On the servicing side, LEP borrowers must be able to understand escrow (a concept that doesn't translate well), forbearance repayment options, and how to avoid foreclosure, among other servicing topics. Servicers can provide interpretation services and translated documents to help LEP borrowers navigate these processes. While developing the Language Access Multi-Year Plan, Fannie Mae and Freddie Mac conducted interviews and focus groups with borrowers whose primary language wasn't English, as well as with lenders and servicers, to learn how borrowers and mortgage professionals interact throughout the mortgage process. Not surprisingly, LEP borrowers want to use documents written in their own language. While they appreciate translated documents, LEP borrowers prefer interpretation (in-person translation). ey want to speak with knowledgeable people who can explain (and be sure they understand) the complicated mortgage process and answer their questions. Mortgage Translations Clearinghouse. is FHFA website includes many language resources available through the CFPB, Fannie Mae, and Freddie Mac: » Borrower Education Materials: Avoiding foreclosure, hurricane relief, and disaster recovery » Glossaries of Financial Terms: Standardized glossaries are available in five languages: Spanish, traditional Chinese, Vietnamese, Korean, and Tagalog » COVID-19-related resources: Forbearance and repayment options information and a forbearance servicer script in multiple languages » Interpretive Services: Live interpretation services and counseling in more than 200 languages to help LEP borrowers understand the mortgage process, navigate forbearance, and prevent foreclosure CFPB. e CFPB website provides mortgage information for consumers in eight languages. Fannie Mae. Fannie Mae's website provides translations for important mortgage documents, including the mortgage statement, escrow documents, delinquency/workout notices, and a mortgage assistance application. It also provides a helpful forbearance script. Freddie Mac. Freddie Mac provides information about COVID-19 relief for homeowners in Spanish and several other languages. Housing and Urban Development. e HUD website includes resources (e.g., housing counseling and COVID-19 outreach) related to Fair Housing for LEP individuals. MORTGAGE SERVICING SOFTWARE CAN HELP Mortgage servicing software can and should play a role in assisting LEP borrowers. Servicers should use mortgage servicing software that, at a minimum, allows them to indicate borrowers' preferred language throughout their software systems. is helps servicers direct borrowers to the right staff who can quickly and easily assist them. e language preference indicator can also alert customer support or collections staff that a borrower may need translated documents and/or an interpreter. America's diversity increases every year, and mortgage lenders and servicers have a responsibility to serve all people in their service areas with a high level of support and fairness. By taking steps now to consider how to best serve LEP borrowers, lenders and servicers can expand their potential customer base while ensuring compliance with new regulations intended to keep the doors of homeownership open to all. Anita Bush is VP of Mortgage Servicer Product Development for Financial Industry Computer Systems, Inc. (FICS), a leading mortgage software company specializing in flexible, cost-effective, in-house mortgage loan origination, residential mortgage servicing, and commercial mortgage servicing software for mortgage lenders, housing agencies, banks, and credit unions. FICS' software solutions provide customers the flexibility to choose an in-house or cloud hosting solution. e company also provides innovative document management, API, and web-based capabilities in its full suite of products. Visit FICS.com for more information about our exceptional mortgage software solutions. Feature By: Anita Bush