[Congressional Record Volume 160, Number 59 (Thursday, April 10, 2014)]
[Extensions of Remarks]
[Page E570]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       INTRODUCTION OF THE HOUSING FINANCIAL LITERACY ACT OF 2014

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                           HON. JOYCE BEATTY

                                of ohio

                    in the house of representatives

                        Thursday, April 10, 2014

  Mrs. BEATTY. Mr. Speaker, owning a home is the cornerstone of 
achieving the American Dream for many Americans. Homeownership is a 
source of pride and develops robust and stable communities. However, 
for many prospective first-time homeowners, the process of purchasing 
real estate may be confusing and daunting and may leave uninformed 
buyers victims of unaffordable or predatory loans.
  I believe that we must support access to homeownership and the 
financial literacy necessary to become a successful first-time 
homeowner. That is why today I am introducing the Housing Financial 
Literacy Act of 2014 which would provide a discount on Federal Housing 
Administration, or FHA, upfront mortgage insurance premiums of 25 basis 
points to first-time homebuyers who complete a housing counseling 
program certified by the Department of Housing and Urban Development, 
or HUD. This bill would encourage first time homebuyers to take 
advantage of these critical counseling resources that can increase 
their financial literacy skills and capabilities.
  Currently, HUD's Housing Counseling Assistance Program provides 
counseling to consumers on the entire spectrum of housing counseling 
needs: from finding and financing, to maintaining and owning a home. 
Studies have shown that homebuyers who receive pre-purchase housing 
counseling courses are nearly one-third less likely to fall behind on 
their mortgage, and that housing counseling can improve prospective 
borrowers' access to affordable, prudent mortgage loans. Consequently, 
an additional anticipated benefit is a reduction in delinquencies and 
defaults by better-informed first-time homebuyers that should serve to 
strengthen the FHA's Mutual Mortgage Insurance Fund.
  Mr. Speaker, for many Americans, their home is the largest financial 
asset they will ever own. Ensuring that first-time buyers have the 
knowledge and tools necessary to be successful homeowners is an 
objective that we can all share. My thanks goes out to the bipartisan 
group of original cosponsors who recognized the importance of this 
legislation, including the Democratic and Republican Co-Chairs of the 
Financial Literacy Caucus.
  I urge my colleagues to join in our efforts to increase financial 
literacy by cosponsoring the Housing Financial Literacy Act of 2014.

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