Don't Wait for Regulations: Mortgage Servicers Need to Embrace Non-English-language Support Now

The United States is becoming increasingly multi-lingual. The U.S. Census Bureau estimates that in 2019, more than 67 million people spoke a language other than English at home, a 52% increase from 2000. Non-native speakers are also making up an increasingly significant proportion of home buyers. According to the National Association of Hispanic Real Estate Professionals (NAHREP), in 2021 the Hispanic homeownership rate increased (for the seventh consecutive year) to 48.4 percent. The NAHREP  expects 70% of new homes sold between 2020 and 2040 to be purchased by Latino families.

The government expects mortgage professionals to help borrowers with Limited English Proficiency (LEP) successfully navigate the complicated mortgage process. To accommodate LEP borrowers, mortgage servicers must build in processes to ensure fair and equal customer service throughout the life of the loan. Additionally, regulatory and legal pressure is building to ensure that LEP borrowers have equal access to customer support and default servicing options. Servicers should be familiar with the state laws, Consumer Financial Protection Bureau (CFPB) guidelines and any new federal legislation related to language access for LEP borrowers.

Fortunately, 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. This helps servicers direct borrowers to the right staff who can quickly and easily assist them. The language preference indicator can also alert customer support or collections staff that a borrower may need translated documents or an interpreter.

Read the DSNews article to discover language resources for LEP borrowers.