117 
SEC. 502. RESCISSION OF PUBLIC AND INDIAN HOUSING 
NOTICE 2021–18. 
The Public and Indian Housing Notice 2021–18 of 
the Department of Housing and Urban Development is 
hereby rescinded. 
TITLE 
VI—IMPROVING 
FINAN-
CIAL LITERACY REGARDING 
HOUSING 
SEC. 601. REFORMS TO HOUSING COUNSELING AND FINAN-
CIAL LITERACY PROGRAMS. 
(a) IN GENERAL.—Section 106(a)(4) of the Housing 
and Urban Development Act of 1968 (12 U.S.C. 
1701x(a)(4)) is amended— 
(1) in subparagraph (B)— 
(A) by striking ‘‘The Secretary’’ and in-
serting the following: 
‘‘(i) IN
GENERAL.—The Secretary’’; 
and 
(B) by adding at the end the following: 
‘‘(ii) REQUIREMENT.—The Secretary 
shall require each organization receiving 
assistance under this paragraph to employ 
individuals providing housing counseling 
who— 
‘‘(I) are certified to understand 
sustainable homeownership; and 
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‘‘(II) pass required examinations 
that determine the ability of the indi-
vidual to counsel borrowers on respon-
sible homeownership. 
‘‘(iii) 
SUSPENSION
OF
CERTIFI-
CATION.—If an individual employed by an 
organization that receives assistance under 
this paragraph provides counseling services 
to borrowers who, after receiving those 
services, have default rates that exceed the 
average default rates for borrowers coun-
seled by individuals in the area served by 
the organization, the Secretary— 
‘‘(I) shall suspend the certifi-
cation from the individual; and 
‘‘(II) may deny future assistance 
under this paragraph to that organi-
zation. 
‘‘(iv) PROHIBITION ON LOBBYING AC-
TIVITIES.—An organization that applies 
for or receives assistance under this para-
graph shall not engage in political activi-
ties, advocacy, or lobbying, whether di-
rectly or through other parties.’’; and 
(2) by adding at the end the following: 
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‘‘(F) SET ASIDES.—The Secretary shall set 
aside 40 percent of amounts authorized to carry 
out this paragraph for organizations that pro-
vide rental counseling or pre-foreclosure coun-
seling. 
‘‘(G) GEOGRAPHIC DIVERSITY.—In making 
grants under this paragraph, the Secretary 
shall ensure that the recipients are geographi-
cally diverse and include organizations that 
serve urban and rural areas.’’. 
(b) REQUIRING PREPURCHASE AND 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 subor-
dinate lien on residential real property (including in-
dividual units of condominiums and cooperatives) de-
signed principally for the occupancy of from 1- to 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) insured under section 255 of the Na-
tional Housing Act (12 U.S.C. 1715z–20); 
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(C) guaranteed under section 184 or 184A 
of the Housing and Community Development 3 
Act of 1992 (12 U.S.C. 1715z–13a, 1715z–4 
13b); 
(D) guaranteed or insured by the Depart-
ment of Agriculture; or 
(E) made by the Department of Agri-
culture. 
(2) REQUIREMENT FOR PURCHASERS.—Before 
purchasing residential real property that secures a 
covered mortgage loan, the purchaser shall partici-
pate in prepurchase housing counseling. 
(3) REQUIREMENT FOR BORROWERS.—A bor-
rower with respect to a covered mortgage loan who 
is 30 days or more delinquent on payments for the 
covered mortgage loan shall participate in fore-
closure mitigation counseling. 
Æ 
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