To amend the Housing and Urban Development Act of 1968 to provide reforms to housing counseling and financial literacy programs.
Sponsored By: Representative Rep. Scott, David [D-GA-13]
Introduced
Summary
Would strengthen oversight and raise competency standards for HUD housing counselors. It would also expand which mortgage loans trigger counseling offers and set payment rules to support foreclosure-mitigation counseling for delinquent borrowers.
Show full summary
- Families and delinquent borrowers: Borrowers who are 30 days or more delinquent on covered mortgage loans would be offered housing counseling. For certain FHA-insured loans the fair market cost of counseling could be paid by the Mutual Mortgage Insurance Fund.
- Counselors and counseling organizations: The bill would require periodic on-site and performance reviews of all participating agencies. It would let the Secretary compare counselor outcomes, require continuing education, order retesting, place counselors on probation, or permanently suspend certification after repeated failures, and deny renewal of assistance with a minimum 60-day notice plus a chance for an informal conference.
- Program scope and eligible loans: It defines a “covered mortgage loan” for the counseling program as a loan on 1–4 family property that is FHA-insured or guaranteed under sections 184 or 184A. It also extends foreclosure mitigation counseling offers to loans made, guaranteed, or insured by the Federal Housing Administration, the Department of Veterans Affairs, the Department of Agriculture, or under sections 184/184A.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
More foreclosure counseling for borrowers
This bill would require that borrowers who are 30 days or more behind on a covered mortgage loan be offered available housing counseling. Covered loans would include 1–4 family homes, individual condos and co-ops, and loans insured or guaranteed by FHA (title II), VA, USDA, or section 184 or 184A. If the requirements of sections 202(a)(3) and 205(f) of the National Housing Act are met, the fair market cost of counseling for delinquent borrowers with FHA title II loans would be paid by the Mutual Mortgage Insurance Fund. These changes would expand access to counseling and could remove out-of-pocket counseling fees for some FHA borrowers in delinquency.
More geographic diversity for grantees
This bill would change HUD's grantee selection language to require recipients be geographically diverse and include organizations that serve urban or rural areas. The change would replace earlier vague language about an "adequate distribution" and could shift how HUD awards counseling assistance across places. This would aim to increase access to counseling in different communities.
New counselor performance and discipline rules
This bill would create periodic on-site and program performance reviews of all HUD housing counseling agencies. It would let the Secretary measure counselor performance using aggregate default rates for counseled borrowers in comparable markets for covered pre-purchase loans (FHA title II or section 184/184A). The Secretary would be able to require continuing education, a probationary period, retesting, and permanent suspension after failure to show competence following at least two retests. The Secretary could also deny renewal of assistance to organizations for noncompliance, but must give at least 60 days prior written notice and allow an informal conference during that period, and enforce actions only if they will not cause a significant loss of counseling capacity in the service area.
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Sponsors & CoSponsors
Sponsor
Rep. Scott, David [D-GA-13]
GA • D
Cosponsors
Rep. Beatty, Joyce [D-OH-3]
OH • D
Sponsored 12/15/2025
Rep. Fields, Cleo [D-LA-6]
LA • D
Sponsored 12/15/2025
Roll Call Votes
No roll call votes available for this bill.
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