I 
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 Fi-
nancial 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 Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. REFORMS TO HOUSING COUNSELING AND FI-
NANCIAL 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 ‘‘ade-
quate distribution’’ and all that follows through 
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‘‘foreclosure rates’’ and inserting ‘‘that the recipi-
ents are geographically diverse and include organiza-
tions 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 partici-
pating agency’s compliance with all pro-
gram requirements; and 
‘‘(ii) may take into account the agen-
cy’s 
aggregate 
counselor 
performance 
under paragraph (7)(B). 
‘‘(7) CONSIDERATIONS.— 
‘‘(A) COVERED
MORTGAGE
LOAN
DE-
FINED.—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 con-
dominiums and cooperatives) designed prin-
cipally for the occupancy of between 1 and 4 
families that is— 
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‘‘(i) insured by the Federal Housing 
Administration under title II of the Na-
tional Housing Act (12 U.S.C. 1707 et 
seq.); or 
‘‘(ii) guaranteed under section 184 or 
184A of the Housing and Community De-
velopment Act of 1992 (12 U.S.C. 1715z– 
13a, 1715z–13b). 
‘‘(B) COMPARISON.—For each counselor 
employed by an organization receiving assist-
ance under this section for pre-purchase hous-
ing counseling, the Secretary may consider the 
performance of the counselor compared to the 
default rate of all counseled borrowers of a cov-
ered mortgage loan in comparable markets and 
such other factors as the Secretary determines 
appropriate to further the purposes of this sec-
tion. 
‘‘(8) CERTIFICATION.—If, based on the com-
parison required under paragraph (7)(B), the Sec-
retary determines that a counselor lacks competence 
to provide counseling in the areas described in sub-
section (e)(2) and such action will not create a sig-
nificant loss of capacity for housing counseling serv-
ices in the service area, the Secretary may— 
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‘‘(A) require continued education coupled 
with successful completion of a probationary pe-
riod; 
‘‘(B) require retesting if the counselor con-
tinues 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 op-
portunities 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 organi-
zation 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 
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‘‘(ii) in accordance with regulations 
issued by the Secretary. 
‘‘(B) NOTICE.—The Secretary shall give 
an organization or entity receiving covered as-
sistance not less than 60 days prior written no-
tice of any denial of renewal under this para-
graph, and the determination of renewal shall 
not be finalized until the end of that notice pe-
riod. 
‘‘(C) INFORMAL
CONFERENCE.—If re-
quested in writing by the organization or entity 
within the notice period described in subpara-
graph (B), the organization or entity shall be 
entitled to an informal conference with the Dep-
uty Assistant Secretary of Housing Counseling 
on behalf of the Secretary at which the organi-
zation or entity may present for consideration 
specific factors that the organization or entity 
believes were beyond the control of the organi-
zation or entity and that caused the failure to 
comply with program requirements, such as a 
lack of lender or servicer coordination or com-
munication with housing counseling agencies 
and individual counselors.’’; and 
(4) by adding at the end the following: 
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‘‘(j) OFFERING FORECLOSURE MITIGATION COUN-
SELING.— 
‘‘(1) COVERED MORTGAGE LOAN DEFINED.—In 
this subsection, the term ‘covered mortgage loan’ 
means any loan which is secured by a first or subor-
dinate lien on residential real property (including in-
dividual units of condominiums and housing co-
operatives) 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 Ad-
ministration 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 Develop-
ment 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 bor-
rower with respect to a covered mortgage loan who 
is 30 days or more delinquent on payments for the 
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