National CAPACD Applauds FHFA for Adding Language Preference
to Universal Residential Mortgage Applications
On Friday, October 20, 2017 the Federal Housing Finance Agency (FHFA) announced its decision to include preferred language on the Uniform Residential Loan Application (URLA), the industry standard form used by nearly all mortgage lenders in the United States that borrowers must complete when applying for a mortgage. In coalition with Americans for Financial Reform, National CAPACD has been part of ongoing national advocacy efforts to include preferred language in the URLA. We applaud the FHFA for taking affirmative steps to assist limited English proficient (LEP) and Asian American and Pacific Islander (AAPI) borrowers and commented on FHFA’s Request for Input in July. The modified URLA will allow applicants to self-identify in the following preferred languages: English, Chinese, Korean, Spanish, Tagalog, Vietnamese, and “Other.” The forms will be in use beginning July 2019 and mandatory for institutions to use effective January 2020.
“This is a significant step in improving access to safe credit and ensures better language coverage from consumers when buying a home. It will enable financial institutions, agencies, and advocates to better understand their client base and language needs. This will inform hiring practices of loan officers in local markets and increase partnerships with organizations like those in National CAPACD’s housing counseling network who provide financial advice in-language,” said Seema Agnani, Executive Director. Language access continues to be a significant hurdle for AAPI households. Improving language access in federal forms and in-language resources for LEPs is one of National CAPACD’s top advocacy priorities. Households who speak English as a second language, or who cannot read English, are particularly disadvantaged in their ability to review and understand mortgage terms, statements and notices related to the status of their home mortgage as well as any other financial products.
Collectively, AAPIs speak more than 100 different dialects and represent more than 50 different ethnic groups. Many low-income AAPI communities also include a high proportion of LEP families. According to the U.S. Census, approximately 71% of Asian Americans speak a language other than English at home, compared to 20% of the total population. Of these, 32% of Asian Americans and 8% of Native Hawaiians and Pacific Islanders are considered LEP, compared to 9% of the total U.S. population. As such, many LEP households are more likely to be victims of fraud or misconduct by services.
For the past eight years, National CAPACD has fostered the growth of a network of 20 HUD-approved Counseling Agencies that serve LEP immigrants and refugees in 16 geographic regions and ability to serve over 25 different languages and dialects. These organizations currently provide housing counseling in a diverse set of languages including: Bengali, Burmese, Bhutanese, Cantonese, French, Hindi, Hmong, Laotian, Mandarin, Mon, Nepali, Pumjabi, Urdu, Spanish, Tagalog, Thai, Tibetan, and Vietnamese.
National CAPACD thanks FHFA for addressing the needs of LEP populations and hopes that FHFA will continue its ongoing efforts to address obstacles of affordable homeownership for LEP communities and low-income communities of color.