Washington, D.C. – U.S. Senator Laphonza Butler (D-Calif.) is introducing a package of financial literacy bills that would expand resources for limited and non-English speakers. According to data from the U.S Census Bureau, over 20 percent of U.S. households speak a language other than English with more than 380 languages spoken nationwide. While the financial services industry is largely centered on serving English-speaking consumers, studies by federal agencies and other advocacy groups have found that access to materials in a consumer’s native language is essential to increasing knowledge about financial products and services. The package of bills is co-sponsored by Mazie Hirono (D-Hawai’i), and the Improving Language Access in Mortgage Servicing Act is also co-sponsored by Elizabeth Warren (D-Mass.).
“The goal of this package of bills is to break down language barriers in accessing financial information, empowering individuals with the resources they need to achieve financial stability and success,” said Senator Butler.
The Multilingual Financial Literacy Act would direct the Financial Literacy Education Commission (FLEC) to carry out a study on the impact of language barriers to financial health. Following the study, FLEC would:
- Issue a report with recommendations on how to address these barriers, with the goal of achieving better financial inclusion for individuals with limited English proficiency.
- Coordinate and promote efforts of Federal agencies to make financial literacy and education resources, including websites and hotlines, available in at least eight of the most commonly spoken languages in the United States.
The following organizations endorse the Multilingual Financial Literacy Act: Americans for Financial Reform, Catholic Charities, Coalition of Adult Basic Education (COABE), Latinos for Education, California Community Action Partnership Association (CalCAPA), Urban League of San Diego, Alliance San Diego, Housing and Economic Rights Advocates (HERA), Habitat for Humanity California, California Coalition for Community Investment (CCCI), and City Heights Community Development Corporation.
The Improving Language Access in Mortgage Servicing Act would:
- Require the Consumer Financial Protection Bureau (CFPB) to translate mortgage documents from English into the 8 languages most commonly spoken by individuals.
- Require the CFPB to incorporate an additional top 4 spoken languages within 3 years, for a total of 12 languages.
- Require relevant federal agencies to establish and maintain a language resources website for mortgage originators and servicers, as well as improve existing website information for consumers about language services by housing counseling agencies.
- Require servicing companies to provide oral translation services when necessary for servicing a borrower’s loan, for Limited English Proficiency (LEP) borrowers who speak one of the top 8 languages (and the top 12 after 3 years).
The following organizations endorse the Improving Language Access in Mortgage Servicing Act: The National Consumer Law Center (on behalf of its qualifying clients), UnidosUS, Americans for Financial Reform, National Fair Housing Alliance, National Housing Resource Center, National Housing Law Project, Asian Real Estate Association of America, National Association of Hispanic Real Estate Professionals, Inclusive Communities Project, Avenue Community Development Corporation, and California Reinvestment Coalition, Urban League of San Diego, Alliance San Diego, Housing and Economic Rights Advocates (HERA), Habitat for Humanity California, Habitat for Humanity Greater Los Angeles, Habitat for Humanity Greater San Francisco, California Coalition for Community Investment (CCCI), City Heights Community Development Corporation, and the National Fair Housing Alliance.
The Community Finance Language Inclusion Act would:
- Expand the Community Development Financial Institutions (CDFI) Fund’s definition of “technical assistance” to include outreach and materials in languages other than English to serve limited English proficiency individuals.
- Authorize language outreach that is accessible for technical assistance, grants, and services.
The following organizations endorse the Community Finance Language Inclusion Act: UnidosUS, National Consumer Law Center (on behalf of its qualifying clients), Consumer Action, Urban League of San Diego, Alliance San Diego, Housing and Economic Rights Advocates (HERA), Habitat for Humanity California, California Coalition for Community Investment (CCCI), and City Heights Community Development Corporation.
“Senator Butler’s proposals are a positive step forward in increasing financial democratization and protections in the U.S.,” said Maeve Elise Brown, Executive Director, Housing and Economic Rights Advocates (HERA).
“The California Coalition for Community Investment (CCCI) stands in full support of this vital package of bills, recognizing that inclusive financial practices are at the heart of our mission and these efforts will empower and include marginalized communities who are often left out of traditional banking and financial institutions,” said Noni Ramos, Executive Chair, the California Coalition for Community Investment. “Through our commitment to serving all unbanked and disadvantaged communities, let’s ensure financial access knows no language barrier.”
Full bill text of the Multilingual Financial Literacy Act can be found HERE
Full bill text of the Improving Language Access in Mortgage Servicing HERE
Full bill text of the Community Finance Language Inclusion Act can be found HERE
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