To amend the Housing and Urban Development Act of 1968 to provide reforms to housing counseling and financial literacy programs.
Sponsored By: Representative Scott, David
Introduced
Summary
Stronger HUD housing counseling and foreclosure counseling. This bill would require more geographically diverse counseling providers while adding tougher performance oversight, counselor certification rules, and a new foreclosure mitigation counseling program.
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- Families and delinquent borrowers: Borrowers 30 days or more delinquent on covered mortgage loans would be offered foreclosure mitigation counseling. If certain statutory conditions are met the Mutual Mortgage Insurance Fund would pay the fair market cost of that counseling for those borrowers.
- Counselors and local organizations: Counselor performance would be compared to default rates for similar markets for FHA and certain guaranteed loans. Poor performance can trigger required continuing education, probationary periods, retesting with at least two retest opportunities, and permanent certification suspension if competence is not shown. Organizations can be denied renewal of assistance after 60 days written notice and may request an informal conference with the Deputy Assistant Secretary to present mitigating factors.
- HUD program reach and oversight: Recipients must be geographically diverse and include organizations serving urban and rural areas. HUD would be authorized to conduct periodic on-site reviews and program-wide performance reviews to enforce compliance.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
More foreclosure counseling for homeowners
If enacted, borrowers who are 30 days or more behind on a covered mortgage loan would be offered housing counseling. Covered loans would include FHA title II loans, loans guaranteed under sections 184 or 184A, and loans made or guaranteed by the VA or USDA. Covered property would include 1-to-4 family homes, condominium units, and cooperatives. If sections 202(a)(3) and 205(f) of the National Housing Act are met, the Mutual Mortgage Insurance Fund would pay the fair market rate cost of counseling for delinquent FHA title II borrowers.
New housing counselor oversight rules
If enacted, HUD would require program recipients to be geographically diverse and include groups that serve both urban and rural areas. HUD would conduct periodic on-site reviews and regular performance reviews of participating agencies and counselors. For pre-purchase counseling, HUD would define covered mortgage loans and could compare each counselor's results to default rates in similar markets and other factors. HUD could require additional training, place counselors on probation, require retesting, and permanently suspend certification after at least two failed retests when competence is not shown and removal would not cause a major loss of local capacity. HUD could deny renewal of covered assistance but must give at least 60 days' written notice and allow a timely request for an informal conference with the Deputy Assistant Secretary.
Sponsors & CoSponsors
Sponsor
Scott, David
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.
View on Congress.gov