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Federal Register / Vol. 86, No. 12 / Thursday, January 21, 2021 / Notices
Bureau demographic or language data 38. For example, the Bureau has previously noted that some nationwide institutions largely focus on serving Spanish-speaking consumers, while regional institutions typically align any language services with local demographics.39

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ii. Product and Service Selection In determining which products and services to offer in languages other than English, financial institutions may consider a variety of factors, including the extent to which LEP consumers use particular products and the availability of non-English language services.40
In determining when during the product lifecycle financial institutions can offer services in non-English languages and the extent of those services, financial institutions may consider activities and communicationswhether verbal or writtenthat most significantly impact consumers. To determine whether a verbal or written communication is one that significantly impacts consumers, financial institutions may consider whether the communication conveys essential information about credit terms and conditions e.g., loan pricing, or about borrower obligations and rights, including those related to delinquency and default servicing, loss mitigation, and debt collection. Financial institutions may also consider existing customer data on what services LEP
consumers use most frequently.41
In making product and service selections, financial institutions should review relevant policies, procedures, and practices for features that may pose heightened risk of unlawful discrimination, including distinctions in product offerings or terms related to prohibited bases e.g., national origin, age or proxies for prohibited bases e.g., geography.42
38 See Supervisory Highlights: Fall 2016, 2122
Oct. 2016, https files.consumerfinance.gov/f/
documents/Supervisory_Highlights_Issue_13__
Final_10.31.16.pdf.
39 CFPB, Spotlight on serving limited English proficient consumers: Language access in the consumer financial marketplace, 8 Nov. 2017, https files.consumerfinance.gov/f/documents/
cfpb_spotlight-serving-lep-consumers_112017.pdf.
40 See infra section B.2.a.iii for additional information on language preference collection and tracking.
41 Id.
42 See 12 CFR 1002.4a; see also CFPB, ECOA
Baseline Review Module 2, 8 Apr. 2019, https
files.consumerfinance.gov/f/documents/cfpb_
supervision-and-examination-manual_ecoabaseline-exam-procedures_2019-04.pdf instructing examiners to review aspects of institutions policies and procedures that may pose heightened fair lending risk; In re American Express Centurion Bank, No. 2017CFPB0016 Aug. 23, 2017, https files.consumerfinance.gov/f/documents/

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iii. Language Preference Collection and Tracking Financial institutions may collect and track customer language information in a variety of ways to facilitate communication with LEP consumers in non-English languages.43 For example, in 2017, the Bureau issued an official approval of the final redesigned Uniform Residential Loan Application URLA that was to include a question to collect mortgage applicants language preference.44 Although the Federal Housing Finance Agency FHFA later opted to remove the language preference question from the URLA, the Bureau has not rescinded the approval, which confirms that financial institutions use of the URLA containing the question identifying a mortgage applicants language preference does not violate Regulation B sections 1002.5bd or the ECOA.45 The Bureau specifically reviewed the language preference question with respect to Regulation B, section 1002.5b concerning requests for information about national origin and determined it to be compliant.
Financial institutions can use similar 201708_cfpb_american-express_content-order.pdf taking action against two American Express banking subsidiaries for discriminating against certain consumers with Spanish-language preferences, and consumers in Puerto Rico, the U.S.
Virgin Islands, and other U.S. territories by charging them higher interest rates, imposing stricter credit cutoffs, and providing less debt forgiveness compared to consumers without Spanish-language preferences or addresses in Puerto Rico and the U.S.
territories.
43 CFPB, Supervisory Highlights: Fall 2016, 21
Oct. 2016, https files.consumerfinance.gov/f/
documents/Supervisory_Highlights_Issue_13__
Final_10.31.16.pdf.
44 The URLA question stated:
Language PreferenceYour loan transaction is likely to be conducted in English. This question requests information to see if communications are available to assist you in your preferred language.
Please be aware that communications may NOT be available in your preferred language.
OptionalMark the language you would prefer, if available:
O English O Chinese O Korean O Spanish O
Tagalog O Vietnamese O Other: ll O I do not wish to respond Your answer will NOT negatively affect your mortgage application. Your answer does not mean the Lender or Other Loan Participants agree to communicate or provide documents in your preferred language. However, it may let them assist you or direct you to persons who can assist you.
Language assistance and resources may be available through housing counseling agencies approved by the U.S. Department of Housing and Urban Development. To find a housing counseling agency, contact one of the following Federal government agencies:
U.S. Department of Housing and Urban Development HUD at 800 5694287 or www.hud.gov/counseling.
Consumer Financial Protection Bureau CFPB
at 855 4112372 or www.consumerfinance.gov/
find-a-housing-counselor.
45 82 FR 55810 Nov. 20, 2017.

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questions to collect customer language preference information outside of the mortgage context. Financial institutions do not violate the ECOA or Regulation B when they collect the language preference of an applicant or borrower in a credit transaction.
However, financial institutions should ensure that information collected about a consumers language preference is not used in a way that violates applicable laws. For example, the Bureau has brought enforcement actions against institutions for violations that resulted, at least in part, from the exclusion of consumers with non-English language preferences from offers provided to similarly situated consumers without those language preferences.46 Financial institutions choosing to collect and track customer language preferences should consider closely monitoring how that information is used within the institution to ensure compliance with applicable laws.47
iv. Translated Documents Financial institutions must adhere to Federal and State laws requiring that they provide consumers with translated documents under certain circumstances.48 Nothing in this Statement alters the applicability of those requirements.
If the translation of documents is not legally mandated, financial institutions may assess whether and to what extent to provide translated documents to consumers. Financial institutions may conduct these assessments and document the related decisions consistent with the guidelines provided in section B.2.b.i. Financial institutions that choose to provide translated documents to LEP consumers, must ensure the accuracy of those 46 See, e.g., In re Synchrony Bank, No. 2014
CFPB0007 June 19, 2014, http
files.consumerfinance.gov/f/201406_cfpb_consentorder_synchrony-bank.pdf citing violations of ECOA resulting from the exclusion of consumers from offers that would otherwise have been provided but for the Banks language preference flag and/or the fact that the consumers had addresses in Puerto Rico or the U.S. territories; In re American Express Centurion Bank, No. 2017CFPB0016
Aug. 23, 2017, https files.consumerfinance.gov/
f/documents/201708_cfpb_american-express_
content-order.pdf taking action against two American Express banking subsidiaries for discriminating against certain consumers with Spanish-language preferences, and consumers in Puerto Rico, the U.S. Virgin Islands, and other U.S.
territories by charging them higher interest rates, imposing stricter credit cutoffs, and providing less debt forgiveness compared to consumers without Spanish-language preferences or addresses in Puerto Rico and the U.S. territories.
47 See infra section B.2.b.ii on CMS-related monitoring.
48 See, e.g., supra note 13.

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