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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6726 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 6726
To amend the Housing and Urban Development Act of 1968 to provide
reforms to housing counseling and financial literacy programs.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 15, 2025
Mr. David Scott of Georgia (for himself, Mrs. Beatty, and Mr. Fields)
introduced the following bill; which was referred to the Committee on
Financial Services
_______________________________________________________________________
A BILL
To amend the Housing and Urban Development Act of 1968 to provide
reforms to housing counseling and financial literacy programs.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. REFORMS TO HOUSING COUNSELING AND FINANCIAL LITERACY
PROGRAMS.
(a) In General.--Section 106 of the Housing and Urban Development
Act of 1968 (12 U.S.C. 1701x) is amended--
(1) in subsection (a)(4)(C), by striking ``adequate
distribution'' and all that follows through ``foreclosure
rates'' and inserting ``that the recipients are geographically
diverse and include organizations that serve urban or rural
areas'';
(2) in subsection (e), by adding at the end the following:
``(6) Performance review.--The Secretary--
``(A) may conduct periodic on-site reviews; and
``(B) shall conduct performance reviews of all
participating agencies that--
``(i) consist of a review of the
participating agency's compliance with all
program requirements; and
``(ii) may take into account the agency's
aggregate counselor performance under paragraph
(7)(B).
``(7) Considerations.--
``(A) Covered mortgage loan defined.--In this
paragraph, the term `covered mortgage loan' means any
loan which is secured by a first or subordinate lien on
residential real property (including individual units
of condominiums and cooperatives) designed principally
for the occupancy of between 1 and 4 families that is--
``(i) insured by the Federal Housing
Administration under title II of the National
Housing Act (12 U.S.C. 1707 et seq.); or
``(ii) guaranteed under section 184 or 184A
of the Housing and Community Development Act of
1992 (12 U.S.C. 1715z-13a, 1715z-13b).
``(B) Comparison.--For each counselor employed by
an organization receiving assistance under this section
for pre-purchase housing counseling, the Secretary may
consider the performance of the counselor compared to
the default rate of all counseled borrowers of a
covered mortgage loan in comparable markets and such
other factors as the Secretary determines appropriate
to further the purposes of this section.
``(8) Certification.--If, based on the comparison required
under paragraph (7)(B), the Secretary determines that a
counselor lacks competence to provide counseling in the areas
described in subsection (e)(2) and such action will not create
a significant loss of capacity for housing counseling services
in the service area, the Secretary may--
``(A) require continued education coupled with
successful completion of a probationary period;
``(B) require retesting if the counselor continues
to demonstrate a lack of competence under paragraph
(7)(B); and
``(C) permanently suspend an individual
certification if a counselor fails to demonstrate
competence after not fewer than 2 retesting
opportunities under subparagraph (B).'';
(3) in subsection (i)--
(A) by redesignating paragraph (3) as paragraph
(4); and
(B) by inserting after paragraph (2) the following:
``(3) Termination of assistance.--
``(A) In general.--The Secretary may deny renewal
of covered assistance to an organization or entity
receiving covered assistance if the Secretary
determines that the organization or entity, or the
individual through which the organization or entity
provides counseling, is not in compliance with program
requirements--
``(i) based on the performance review
described in subsection (e)(6); and
``(ii) in accordance with regulations
issued by the Secretary.
``(B) Notice.--The Secretary shall give an
organization or entity receiving covered assistance not
less than 60 days prior written notice of any denial of
renewal under this paragraph, and the determination of
renewal shall not be finalized until the end of that
notice period.
``(C) Informal conference.--If requested in writing
by the organization or entity within the notice period
described in subparagraph (B), the organization or
entity shall be entitled to an informal conference with
the Deputy Assistant Secretary of Housing Counseling on
behalf of the Secretary at which the organization or
entity may present for consideration specific factors
that the organization or entity believes were beyond
the control of the organization or entity and that
caused the failure to comply with program requirements,
such as a lack of lender or servicer coordination or
communication with housing counseling agencies and
individual counselors.''; and
(4) by adding at the end the following:
``(j) Offering Foreclosure Mitigation Counseling.--
``(1) Covered mortgage loan defined.--In this subsection,
the term `covered mortgage loan' means any loan which is
secured by a first or subordinate lien on residential real
property (including individual units of condominiums and
housing cooperatives) or stock or membership in a cooperative
ownership housing corporation designed principally for the
occupancy of between 1 and 4 families that is--
``(A) insured by the Federal Housing Administration
under title II of the National Housing Act (12 U.S.C.
1707 et seq.);
``(B) guaranteed under section 184 or 184A of the
Housing and Community Development Act of 1992 (12
U.S.C. 1715z-13a, 1715z-13b);
``(C) made, guaranteed, or insured by the
Department of Veterans Affairs; or
``(D) made, guaranteed, or insured by the
Department of Agriculture.
``(2) Opportunity for borrowers.--A borrower with respect
to a covered mortgage loan who is 30 days or more delinquent on
payments for the covered mortgage loan shall be given an
opportunity to participate in available housing counseling.
``(3) Cost.--If the requirements of sections 202(a)(3) and
205(f) of the National Housing Act (12 U.S.C. 1708(a)(3),
1711(f)) are met, the fair market rate cost of counseling for
delinquent borrowers described in paragraph (2) with respect to
a covered mortgage loan described in paragraph (1)(A) shall be
paid for by the Mutual Mortgage Insurance Fund, as authorized
under section 203(r)(4) of the National Housing Act (12 U.S.C.
1709(r)(4)).''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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