Cosponsor Resolution Condemning FHFA Director Calabria's Decision to Remove the Preferred Language Question from the Uniform Residential Loan Application

Dear Colleague:

We invite you to become an original cosponsor of a resolution condemning Federal Housing and Finance Agency (FHFA) Director Mark A. Calabria's decision to remove the critical borrower's preferred language question from the redesigned Universal Residential Loan Application (URLA).

The URLA is the standardized mortgage application form for all borrowers. Unfortunately, Limited English Proficient (LEP) homebuyers frequently misunderstand the terms of their mortgages due to language barriers, which further complicate the already complex financial process of buying a home. Currently, eight percent of the population of the United States (25.1 million) are LEP individuals. The URLA was revised on October 20, 2017 to include an important preferred language question which Members of Congress, civil rights advocates, and community stakeholders fought vigorously for. The redesigned URLA with the language preference question was scheduled for mandatory implementation by February 1, 2020.

However, this past August, Director Calabria directed the Government-Sponsored Enterprises (GSEs) to remove the preferred language question as well as the Homeownership Education and Housing Counseling question from the URLA and delay the timeline for its mandatory use to an unspecified future date. The language preference question and housing counseling information were moved to a separate form that lenders are not required to use. This arbitrary decision would allow lenders to avoid using the separate form. This decision was implemented despite the fact that the language preference question clearly stated that lenders were not obligated to communicate in the preferred language of the borrower.

The 2008 financial crisis was compounded by language barriers and it is imperative that we work to better understand the needs of LEP homebuyers as they comprise a growing share of the mortgage market. This is why we condemn Director Calabria's decision to implement this discriminatory as well as unnecessary decision and demand its immediate reinstatement on the URLA form.

If you have any questions or if you would like to cosponsor the resolution, please reach out to Tenzin Pelkyi (Tenzin.Pelkyi@mail.house.gov) in Rep. Green's office or Patrick Bond (Patrick.Bond2@mail.house.gov) in Rep. Garcia's office by COB Friday, November 15th.

Sincerely,

Al Green Sylvia Garcia

Member of Congress Member of Congress

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Condemning Federal Housing Finance Agency (FHFA) Director Mark A. Calabria for his decision to remove the borrower's preferred language question and the housing counseling question from the Universal Residential Loan Application (URLA).

Whereas 8% of the United States population (25.1 million) is considered LEP.

Whereas the preferred language question was designed only to better understand the unique challenges that LEP persons face throughout the home buying process.

Whereas language barriers make it especially difficult to navigate the complex process of purchasing a home.

Whereas over one third of Asian Americans and Pacific Islanders (AAPI) are LEP individuals.

Whereas Spanish speakers in the United States account for 64% of the United States' LEP population.

Whereas LEP homebuyers make up a growing share of the mortgage market.

Whereas communities with larger LEP populations have lower homeownership rates.

Whereas every American, regardless of their race, color, gender, sexual orientation, religion, national origin, disability, LEP status, or gender identity should have a fair and equal opportunity to purchase a home in this country.

Whereas the 2008 financial crisis caused countless borrowers to lose their homes because language barriers made it impossible to comprehend the terms of the loans some of them received.

Whereas access to credit and homeownership is a struggle for far too many qualified homebuyers who are new Americans as well as immigrant communities.

Whereas AAPI and Hispanic homeownership continues to fall behind the national average due to a number of factors, including language barriers and misinformation about the home buying process.

Whereas we urge FHFA to collect data on the preferred language of borrowers to better understand and address the growing needs of LEP homebuyers.

Whereas a standardized question on the URLA indicating the borrower's preferred language neither obligates homebuyers to respond nor mortgage originators and servicers to conduct communications in the preferred language of the borrower.

Resolved, That the House of Representatives--

(1) condemns the decision of Federal Housing Finance Agency Director Mark A. Calabria to remove the preferred language question from the Universal Residential Loan Application; and

(2) urges the Director to immediately reverse this arbitrary decision and restore the language preference question and the Homeownership Education and Housing Counseling question to the Universal Residential Loan Application.