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70 Mortgage industry regulators have made it clear that lenders and servicers must treat mortgage borrowers fairly and provide equal access to financial services regardless of the consumer's ability to speak English proficiently. As such, they are expected to provide resources to help borrowers with limited English proficiency navigate the complicated mortgage process. e government has made it clear to mortgage lenders that all Americans deserve equal access to credit. ey have even taken some enforcement actions against lenders who have violated its fair lending mandates. Now, with eviction and foreclosure moratoria ending and borrowers coming out of COVID-19 forbearance, mortgage servicers must be prepared to meet the needs of borrowers with limited English proficiency (LEP). THE REGULATOR'S PERSPECTIVE In January 2021, the Consumer Financial Protection Bureau (CFPB) issued its "Statement Regarding the Provision of Financial Products and Services to Consumers with Limited English Proficiency." e Bureau's position is clear: "e Bureau encourages financial institutions to better serve LEP consumers while ensuring compliance with relevant Federal, State, and other legal requirements," including fair lending laws. e statement outlines compliance principles and guidelines that encourage financial institutions to expand access to products and services for LEP consumers. e CFPB has stated that providing services to LEP consumers is part and parcel of full compliance with "the Dodd- Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), the Equal Credit Opportunity Act (ECOA), and other applicable laws." Mortgage servicers are expected to improve their practices with respect to LEP borrowers. e Equal Credit Opportunity Act Baseline Review Modules include module iv: Risks Related to Mortgage Servicing. Examiners are asked to describe the institution's policies and procedures for servicing loans held by LEP borrowers, including the following information: 1) Does the institution flag files that require non-English language assistance? If so, how is this flagged? 2) Do calls for customer service have an option for languages other than English? If so, how are those calls processed? 3) Does the institution have customer service personnel available to provide assistance in languages other than English? A settlement between a large nationwide mortgage servicer and 48 state attorneys general regarding improper servicing allegations required the servicer to improve its practices regarding LEP borrowers. e servicer was required to provide translation services and accept hardship letters and state and federal government forms in languages other than English. Although some states have laws regarding servicing for LEP borrowers, there is currently no federal law that specifically mandates the provision of non-English language services to LEP borrowers during the mortgage servicing process. However, that may soon change. In May 2021, Texas representative Sylvia Garcia introduced a new bill in the House of Representatives. H.R. 3009—the Improving Language Access in Mortgage Servicing Act— establishes language translation requirements related to residential mortgage applications and servicing. e bill includes these provisions: » e Consumer Financial Protection Bureau (CFPB) must create a standard language preference form. Creditors and servicers must provide this form to consumers along Feature By: Anita Bush BREAKING DOWN THE LANGUAGE BARRIER Here's how the industry is pushing to improve communication with limited English proficiency borrowers.