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Question: 

Are there best practices to consider when using a language other than English to advertise to Limited English Proficiency (LEP) consumers?

Answer: 

Advertising in a language other than English can be somewhat complicated as it raises UDAAP concerns if a mortgage company is only able to provide communications, disclosures, and loan documents in English. However, failing to service and/or accommodate the needs of LEP consumers raises substantial fair lending concerns.

If a mortgage lender or broker is going to market/solicit business in a language other than English, the following best practices should be implemented, as applicable:

• The marketing material should include a clear disclosure explaining those portions of the transaction which will only be conducted in English - i.e. disclosures, loan documents, closing, servicing, default servicing, etc. 
  • The disclosure should be displayed conspicuously with the marketing material to ensure the consumer understands and can make an informed decision on whether or not to work with the mortgage company.

• Provide the marketing material in both English and the applicable other language.

• Adopt and implement applicable foreign language disclosures issued by federal agencies and state regulators, such as FHFA’s Language Translation Disclosure.

• Adopt and implement software which enables the mortgage company to provide loan closing documents in the applicable language to the applicant for their review several days prior to closing.

• Utilize a qualified and vetted translator where ever applicable and/or document the applicant’s use of a trusted individual (i.e. spouse, sibling, etc.) to assist in the transaction.

• Maintain objective written policies and procedures addressing LEP consumers and train all employees regarding such policies and procedures.

Note, the above list is not all-inclusive.