1 From Lending to Foreclosure: Protecting the Rights of LEP Homeowners Presented by: Maria DeGennaro Empire Justice Center Staff Attorney 12/4/2015

Who are our clients? In 2010, approximately 25.2 million individual, some 9% of the total population, were considered Limited English Proficient. The US Census Bureau classified as Limited English Proficient (“LEP”), anyone above the age the age of 5, who reported speaking English less than “very well”. 64% of the LEP population speaks Spanish. 6% of the LEP population speaks Chinese. 2

Who are our clients? (cont.) Asian Americans and Pacific Islanders (AAPI) speak more than 100 different dialects and represent more than 50 different ethnic groups. Many Low–income AAPI communities also have a high proportion of LEP Communities. The U.S. Census Bureau estimates that the Hispanic population will Increase by 86% between 2015 and 2050 This equates into 119 million or one in four Americans by

Why is this important? The health of the US economy is deeply tied to the status of LEP consumers’ financial health. In the world of financial products, industry players conduct research and tailor their sales pitch to the members of the LEP community. They pitch financial products to LEP consumers in their own languages. Typically, once the consumer is sold the product, they receive complicated information regarding terms in English. 4

Why is this important? (cont.) Sometimes LEP homeowners rely on children to translate documents, when they refinance, seek loan servicing or loan modification assistance. It is important that LEP consumers understand financial transactions because:  LEP Families need access to financial products  Need to know their rights before, during, and after the transaction.  Housing is essential for for creating wealth. It provides family and community stability. 5

When can LEP homeowners reach out for help? Mortgage origination Loan servicing Loan modification assistance and servicing Foreclosure prevention 6

Where can LEP consumers get help ? New York State Attorney General’s Homeownership Protection “HOPP” Hotline – Network of advocates There are many collaborative network of advocates who work on financial consumer issues:  Americans For Financial Reform  New Yorkers for Responsible Lending 7

Advocates’ work with CFPB Role of Consumer Finance Protection Bureau (“CFPB”) “To implement, and where applicable, enforce federal consumer financial laws consistently for the purpose of ensuring that all consumers have access to markets for consumer financial products and services and that the markets are fair, transparent and competitive.” 8

Authority of the CFPB Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) 12 USC Sec (a) of Dodd Frank Act Unfair, Deceptive and Abusive Acts and Practices (UDAAP) Equal Credit Opportunity Act (ECOA) 9

Advocates’ Recommendations to CFPB Provide protections for mortgage applications with Limited English proficiency. Enhance servicing protections for homeowners with Limited English proficiency. Expand existing supervision and examination procedures to include a review of language accessibility. 10

Recommendations (cont.) Improve language access to the CFPB’s consumer complaint services. Provide affirmative written guidance/regulations on standards for addressing language access in financial institutions. Update data fields in the HMDA to include the preferred language spoken by the loan applicant. Establish and head up a federal interagency working group to examine strategies for improving data collection and tracking of language preferences of borrowers throughout the mortgage lending process. 11

Case Study Jessica Huaman, Lending Investigator/Community Outreach Coordinator: Long Island Housing Services, Inc. Insider’s view: An immigrant family’s experience - from Peru to Long Island. LEP Challenges: From Origination to Foreclosure and Beyond: Achieving Stability Through Financial Education. It can happen to you, your family, friends and neighbors. 12

Collaboration with the Courts Gale Berg, Esq. – Nassau County Bar Association Collaboration with HOPP Advocates- monthly meetings Notice to all homeowners in Foreclosure in English and Spanish Mandate by OCA to Provide Language Access Interpreters “We speak your language” signs Commitment from the courts to provide interpreters 13

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Efforts to prevent scams Rose Marie Cantanno, Esq., New York Legal Assistance Group How to recognize scams: “guarantees” Homeowners told to “stop making your mortgage payments. How to prevent scams: Spread the work about legitimate agencies:  HOPP Network  HUD housing counseling agencies:   Effects on the Community 15

Action Step #1: File a complaint with the CFPB 16

Action Step #2 We need your stories! Americans for Financial Reform (AFR) and Empire Justice Center are working on these issues. We are looking for stories: Homeowners who were scammed, or in some way their rights were not protected due to a language barrier, at any stage of the loan process: origination, servicing, loan modifications, foreclosure. Please submit your stories to us. These stories will be collected by AFR and presented to the CFPB. We need you! Thank you!! 17

Action Step #3  Please spread the word that help is available: – NY S AG HOPP Foreclosure Prevention Hotline

Sources Some o of the information shared was obtained from the following sources: 1.Americans For Financial Reform Legal Memo: “The CFPB and Federal Banking Regulators Should Put in Place Strong Language Access Protections for Homeowners and Other Consumers” November 9, U.S Census Bureau, , American Community Survey 5-Year Estimates, American Community Survey (Washington, DC: U.S. Census Bureau, 2010) Table B 16004, pecial_data_release/(accessed January 6, 2015.ttp:// pecial_data_release/(accessed 3.National Committee of La Raza (“NCLR”) Blog: Financial Access and Services are Essential for Immigrant Integration, Lindsay Daniels, Manager, Wealth Building Initiative, NCLR. 19

Sources (cont.) 4.. U.S. Census Bureau, 2010 Census Briefs, Overview of Race and Hispanic Origin, 2010 (March 2011) available t /briefs/c2010br- 02.pdf /briefs/c2010br- 02.pdf U.S.C. § “Are Mortgage Servicers Following the New Rules” (Washington DC and Philadelphia, PA: National Council of La Raza and National Housing Resource Center, January 2015). 20

Contacts Contact Empire Justice Center  Maria DeGennaro  Ruhi Maker