Bill Overview
Title: Improving Language Access in Mortgage Servicing Act of 2021
Description: This bill establishes language translation requirements related to residential mortgage applications and servicing. The Consumer Financial Protection Bureau (CFPB) must create a standard language preference form. Creditors and servicers must provide this form to consumers along 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. The CFPB and the Federal Housing Finance Agency must publish translated documents used in association with a residential mortgage.
Sponsors: Rep. Garcia, Sylvia R. [D-TX-29]
Target Audience
Population: People engaged in mortgage application and servicing processes; non-native English speakers
Estimated Size: 15000000
- This bill specifically targets individuals involved in residential mortgage processes, which includes applying for and servicing these mortgages.
- Homeownership statistics show that around 64% of households in the U.S. are owner-occupied, according to the U.S. Census Bureau.
- The bill will positively impact non-English speakers involved in the mortgage market who may experience language barriers.
- Based on the U.S. Census data, about 22% of people in the U.S. speak a language other than English at home.
- Assuming similar language needs globally, OECD countries have similar rates of homeownership and might have similar needs for language support in financial services.
Reasoning
- The policy will primarily affect non-native English speakers who are involved in the mortgage application process, which is a significant portion of U.S. households given the high rate of homeownership.
- Providing language access services might reduce stress related to misunderstandings in mortgage documents, potentially improving overall wellbeing.
- It's important to include perspectives from diverse demographic backgrounds because language needs and financial situations vary widely.
- The budget will limit the scale of impact, focusing assistance on areas with higher concentrations of non-English speakers.
- Some people without language barriers will experience no impact, providing a baseline for comparison.
Simulated Interviews
Teacher (San Jose, CA)
Age: 35 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 10/20
Statement of Opinion:
- It is a relief to know I can get explanations in Spanish. Sometimes I worry about signing papers that I don't fully understand.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Small Business Owner (Miami, FL)
Age: 40 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 8/20
Statement of Opinion:
- I don't always understand the mortgage paperwork; having it in Creole would help a lot.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Retired (Phoenix, AZ)
Age: 60 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- During my last mortgage application, a lot of things weren't clear. Translations would make me feel more secure.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Software Engineer (New York, NY)
Age: 28 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- I can handle English documents, but having my parents understand fully in Mandarin would ease a lot of stress.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Nurse (Houston, TX)
Age: 50 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 7/20
Statement of Opinion:
- I feel anxious about mortgage documents; getting help in Vietnamese is reassuring.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 9 | 6 |
Truck Driver (Los Angeles, CA)
Age: 42 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 9/20
Statement of Opinion:
- Mortgage papers are hard enough; in Spanish, I'd feel more confident.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Construction Worker (Chicago, IL)
Age: 55 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- Communicating in Polish would make the whole process much more straightforward.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 6 |
Retired (Seattle, WA)
Age: 70 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- It will be nice to have French clarification even if I manage with English. It's a peace of mind thing.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Financial Analyst (Atlanta, GA)
Age: 30 | Gender: female
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 15/20
Statement of Opinion:
- I understand all the mortgage processes fine in English, I won't really notice a change.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Homemaker (Dallas, TX)
Age: 45 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 6/20
Statement of Opinion:
- I feel overwhelmed by the English in mortgage documents; help in Hindi would be a huge relief.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 6 |
| Year 20 | 9 | 7 |
Cost Estimates
Year 1: $50000000 (Low: $30000000, High: $70000000)
Year 2: $40000000 (Low: $25000000, High: $60000000)
Year 3: $40000000 (Low: $25000000, High: $60000000)
Year 5: $35000000 (Low: $20000000, High: $50000000)
Year 10: $30000000 (Low: $15000000, High: $45000000)
Year 100: $20000000 (Low: $10000000, High: $30000000)
Key Considerations
- Initial roll-out costs related to IT and translation services could be significant, but costs may decrease over time as these services are integrated.
- The need for real-time oral interpretation services might significantly impact ongoing operational costs.
- The need for oversight by the CFPB and FHFA in ensuring compliance with these translation requirements will add to administrative costs.