Mortgage Translation Required in California
Credit unions operating in California must provide written mortgage loan translations in five languages, according to a release from the state's Department of Financial Institutions.
AB 1160, signed into law by California Governor Arnold Schwarzenegger in 2009, requires banks and credit unions to provide a good faith mortgage estimate in Spanish, Chinese, Tagalog, Vietnamese, or Korean if loan terms were negotiated verbally or in writing in any of those languages.
The state's Department of Corporations and DFI have created forms in each of the five languages. Institutions may download them at the DFI's website (http://www.dfi.ca.gov/forms/bank/bankforms.asp) and begin using them immediately. The law took effect July 1, and institutions must provide the form to borrowers no later than Oct. 1.