H.R. 6726 updates federal housing counseling programs by requiring stronger oversight and accountability from organizations that provide housing counseling and financial literacy services. The bill expands performance review requirements so the Department of Housing and Urban Development can regularly assess whether counseling agencies meet program standards and whether individual counselors effectively help borrowers avoid defaults on federally-backed mortgages. It also allows HUD to deny funding renewal to agencies that fail to comply with requirements, though agencies must receive at least 60 days' notice and have the right to request a meeting to explain extenuating circumstances. Additionally, the bill requires mortgage lenders to offer foreclosure prevention counseling to borrowers who are at least 30 days behind on their payments for certain federal loans, with the cost of counseling for FHA-insured mortgages to be covered by the Mutual Mortgage Insurance Fund.
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