Housing Financial Literacy Act of 2021

Bill: 117-s-1490
Sponsor: full_name: Sen. Peters, Gary C. [D-MI]
Introduced: 2021-04-29
Policy area: Housing and Community Development
Subjects: Finance and Financial Sector

Financial literacy

Housing finance and home ownership

Life, casualty, property insurance
Latest action: action_date: 2021-04-29
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2021-04-29
action_desc: Introduced in Senate
text: <p><b>Housing Financial Literacy Act of 2021</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). The bill instead&nbsp;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.</p>

tv_txt: II 117th CONGRESS 1st Session S. 1490 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.

1. Short title This Act may be cited as the Housing Financial Literacy Act of 2021 . 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 .