MBA, Trade Groups Ask More Time on Limited English Proficiency Proposal
The Mortgage Bankers Association and other industry trade groups sent a letter to the Federal Housing Finance Agency asking for an extension to respond to a proposal to improve language access in mortgage lending and servicing.
FHFA in May issued a Request for Input on Improving Language Access in Mortgage Lending and Servicing. Developing ways to better serve Limited English Proficiency borrowers with safe and affordable credit (https://www.fhfa.gov/Media/PublicAffairs/PublicAffairsDocuments/Language_Access_RFI.pdf). The RFI requested input on issues faced by qualified LEP borrowers to learn more about the procedures and tools that loan originators, servicers and other parties in the mortgage lending process presently employ to assist LEP borrowers, to identify existing requirements, including laws and regulations that guide practices for interacting with LEP borrowers and to better understand the challenges in effectively servicing this population.
The MBA/trade group letter agrees that more efficiently addressing the challenges of LEP borrowers is critical to both these borrowers and the mortgage market itself. “The importance of this issue is expected to grow over time, as LEP borrowers continue to increase as a share of the overall population of borrowers in the years ahead,” the letter said.
But MBA and the other trade groups noted such a request asks for extensive information on current resources and poses numerous, detailed questions. They asked for, at minimum, doubling the response time to the RFI from 45 to 90 days.
“Considering, however, the need for broad and diverse participation by lenders of all sizes and business models; thoughtful consideration of the manifold resources and approaches today; identification of legal and other concerns; and the multi-year effort that FHFA admits will be needed to better serve LEP borrowers, there is ample justification for an extension of this RFI’s comment period of at least 45 days,” the letter said. “[We] are committed to working with FHFA and other stakeholders on improving methods for identifying and alleviating challenges faced by LEP borrowers. The time currently allotted, however, is simply insufficient to thoughtfully respond to issues of this magnitude.”
Joining MBA in the letter: the American Bankers Association; Consumer Bankers Association; Consumer Mortgage Coalition; Credit Union National Association; Housing Policy Council of the Financial Services Roundtable; Independent Community Bankers of America; and the National Association of Federally-Insured Credit Unions.
(EDITOR’S NOTE: Late last week the Federal Housing Finance Agency, in response to the MBA/trade group letter, extended the comment deadline to July 31.)
