Title: Housing Financial Literacy Act of 2021
Policy area: Housing and Community Development

Summary:
Housing Financial Literacy Act of 2021
This bill modifies the discount given by the Federal Housing Administration (FHA) on single-family mortgage-insurance premium payments for first-time homebuyers who complete a financial-management counseling program. Under current law, the maximum premium amount for such homebuyers is 2.75% of the original insured principal obligation of the mortgage (compared to 3% for other homebuyers). The bill instead requires that the premium amount for such homebuyers be 25 basis points (0.25% of the original insured principal obligation of mortgage) lower than the amount otherwise established by the FHA. The bill also specifies that first-time homebuyers must complete the financial-management counseling program prior to applying for a mortgage or entering into a sales agreement.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 1490 Introduced in Senate (IS)]

<DOC>






117th CONGRESS
  1st Session
                                S. 1490

 To require the Secretary of Housing and Urban Development to discount 
 FHA single-family mortgage insurance premium payments for first-time 
    homebuyers who complete a financial literacy housing counseling 
                                program.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 29, 2021

Mr. Peters (for himself and Mr. Cornyn) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To require the Secretary of Housing and Urban Development to discount 
 FHA single-family mortgage insurance premium payments for first-time 
    homebuyers who complete a financial literacy housing counseling 
                                program.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Housing Financial Literacy Act of 
2021''.

SEC. 2. DISCOUNT ON MORTGAGE INSURANCE PREMIUM PAYMENTS FOR FIRST-TIME 
              HOMEBUYERS WHO COMPLETE FINANCIAL LITERACY HOUSING 
              COUNSELING PROGRAMS.

    The second sentence of subparagraph (A) of section 203(c)(2) of the 
National Housing Act (12 U.S.C. 1709(c)(2)(A)) is amended--
            (1) by inserting before the comma the following: ``and such 
        program is completed before the mortgagor has signed an 
        application for a mortgage to be insured under this title or a 
        sales agreement''; and
            (2) by striking ``not exceed 2.75 percent of the amount of 
        the original insured principal obligation of the mortgage'' and 
        inserting ``be 25 basis points lower than the premium payment 
        amount established by the Secretary under the first sentence of 
        this subparagraph''.
                                 <all>