Housing Financial Literacy Act of 2020

Bill: 116-s-3639
Sponsor: full_name: Sen. Peters, Gary C. [D-MI]
Introduced: 2020-05-07
Policy area: Housing and Community Development
Subjects: Financial literacy

Housing finance and home ownership

Life, casualty, property insurance
Latest action: action_date: 2020-05-07
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2020-05-07
action_desc: Introduced in Senate
text: <p><b>Housing Financial Literacy Act of 2020</b></p> <p>This bill&nbsp;modifies the&nbsp;discount&nbsp;given by&nbsp;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). </p> <p>The bill instead&nbsp;requires that the premium amount for such homebuyers (1) in the case of a mortgage insured within four years of enactment, be 25 basis points (0.25% of the original insured principal obligation of mortgage) lower than the amount otherwise established by the FHA; or (2) in the case of a mortgage insured four years after enactment, at a rate set by the FHA that corresponds to the reduced risk of loss due to the counseling.</p>

tv_txt: II 116th CONGRESS 2d Session S. 3639 IN THE SENATE OF THE UNITED STATES May 7, 2020 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.

1. Short title This Act may be cited as the Housing Financial Literacy Act of 2020 . 2. Discount on mortgage insurance premium payments for first-time homebuyers who complete financial literacy housing counseling programs The second sentence of section 203(c)(2)(A) of the National Housing Act ( 12 U.S.C. 1709(c)(2)(A) ) is amended by striking not exceed 2.75 percent of the amount of the original insured principal obligation of the mortgage. and inserting be, in the case of a mortgage insured during the 4-year period beginning on the date that is 1 year after the date of enactment of the Housing Financial Literacy Act of 2020 , 25 basis points lower than the premium payment amount established by the Secretary under the first sentence of this subparagraph, and, in the case of a mortgage insured after that 4-year period, set by the Secretary at a number of basis points lower than that premium payment amount that corresponds to the reduced risk of loss, if any, due to the counseling. .