[Congressional Record Volume 161, Number 59 (Wednesday, April 22, 2015)]
[Extensions of Remarks]
[Page E559]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       INTRODUCTION OF THE HOUSING FINANCIAL LITERACY ACT OF 2015

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                           HON. JOYCE BEATTY

                                of ohio

                    in the house of representatives

                       Wednesday, April 22, 2015

  Mrs. BEATTY. Mr. Speaker, to this day we, as a country, are still 
working through the devastating effects of the foreclosure crisis. This 
avoidable tragedy was caused in part by predatory lenders taking 
advantage of homebuyers who had little or no understanding of the 
purchases they were making. That is why, in recognition of Financial 
Literacy Month, I introduced legislation entitled, ``the Housing 
Financial Literacy Act of 2015.'' This bill would give first-time 
homebuyers who complete a Department of Housing and Urban Development 
or HUD-certified housing counseling course a discount on their Federal 
Housing Administration (FHA) mortgage insurance premiums of 25 basis 
points (or 0.25 percent).
  For many Americans, owning a home is the cornerstone of achieving the 
American Dream. Homeownership not only benefits the homeowner's family 
and surrounding community, it is also linked to improved health and 
school performance for children. Additionally, FHA provides the gateway 
to affordable housing for these individuals and families. 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.
  The Housing Financial Literacy Act of 2015 would motivate first-time 
homebuyers to seek vital pre-purchase housing counseling to alleviate 
the confusion and fears associated with purchasing real estate. These 
housing counseling programs help prospective homebuyers understand 
their financing and down-payment options, evaluate their readiness for 
a home purchase and navigate what sometimes may be a confusing and 
difficult process. In fact, 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.
  These programs are so important that just last week, HUD awarded more 
than $36 million in housing counseling grants to hundreds of national, 
regional and local organizations to help families and individuals with 
their housing needs and to prevent future foreclosures. Consequently, 
an additional benefit of housing counseling is a reduction in 
delinquencies or default by better-informed first-time homebuyers. The 
Housing Financial Literacy Act of 2015 would encourage first-time 
homebuyers to take advantage of these critical counseling resources 
that can increase their financial literacy skills and capabilities.
  Mr. Speaker, ensuring that first-time homebuyers have the knowledge 
and tools necessary to be successful homeowners is an objective that we 
can all share. I would like to thank the Members of Congress who signed 
on as original co-sponsors of this bipartisan bill, including the 
Democratic and Republican Co-Chairs of the Financial Literacy Caucus, 
and urge my colleagues to join in our efforts to increase financial 
literacy by adding their names to the Housing Financial Literacy Act of 
2015.

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