What term is used to describe how well we communicate with borrowers who do not speak english as their primary language?

Question: What term is used to describe how well we communicate with borrowers who do not speak english as their primary language?

One of the challenges that lenders face in the mortgage industry is how to communicate effectively with borrowers who do not speak English as their primary language. This is not only a matter of customer service, but also of compliance and risk management. In this blog post, we will explore what term is used to describe this aspect of communication and why it is important for lenders to pay attention to it.

The term that is commonly used to describe how well we communicate with borrowers who do not speak English as their primary language is language access. Language access refers to the ability of people with limited English proficiency (LEP) to access and understand information and services in their preferred language. According to the U.S. Census Bureau, there are more than 25 million LEP individuals in the United States, representing about 8% of the population. These individuals speak more than 350 different languages, with Spanish, Chinese, Vietnamese, Korean, and Tagalog being the most common.

Language access is not only a courtesy, but also a legal obligation for lenders. Under federal law, such as the Fair Housing Act and the Equal Credit Opportunity Act, lenders are prohibited from discriminating against borrowers on the basis of their national origin, which includes their language preference. Additionally, some states and local jurisdictions have enacted their own laws and regulations that require lenders to provide language access services to LEP borrowers, such as translation, interpretation, and bilingual staff. Failing to comply with these laws and regulations can expose lenders to lawsuits, fines, and reputational damage.

Therefore, it is essential for lenders to have a language access plan that outlines how they will communicate with LEP borrowers throughout the loan process. A language access plan should include:

- A policy statement that affirms the lender's commitment to providing language access services to LEP borrowers

- A procedure for identifying the language needs and preferences of LEP borrowers

- A protocol for providing translation and interpretation services to LEP borrowers

- A strategy for training and monitoring staff on language access issues

- A mechanism for evaluating and improving the effectiveness of language access services

By implementing a language access plan, lenders can not only comply with the law, but also enhance their customer service, increase their market share, and reduce their risk exposure. Language access is a key component of communication that can make a difference in the success of a loan transaction.