[Congressional Record (Bound Edition), Volume 154 (2008), Part 14]
[House]
[Pages 19502-19507]
[From the U.S. Government Publishing Office, www.gpo.gov]




       EXPAND AND PRESERVE HOME OWNERSHIP THROUGH COUNSELING ACT

  Mr. SCOTT of Georgia. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 3019) to establish an Office of Housing Counseling 
to carry out and coordinate the responsibilities of the Department of 
Housing and Urban Development regarding counseling on homeownership and 
rental housing issues, to make grants to entities for providing such 
counseling, to launch a national housing counseling advertising 
campaign, and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 3019

       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 ``Expand and Preserve Home 
     Ownership Through Counseling Act''.

     SEC. 2. ESTABLISHMENT OF OFFICE OF HOUSING COUNSELING.

       Section 4 of the Department of Housing and Urban 
     Development Act (42 U.S.C. 3533) is amended by adding at the 
     end the following new subsection:
       ``(g) Office of Housing Counseling.--
       ``(1) Establishment.--There is established, in the Office 
     of the Secretary, the Office of Housing Counseling.
       ``(2) Director.--There is established the position of 
     Director of Housing Counseling. The Director shall be the 
     head of the Office of Housing Counseling and shall be 
     appointed by the Secretary. Such position shall be a career-
     reserved position in the Senior Executive Service.
       ``(3) Functions.--
       ``(A) In general.--The Director shall have ultimate 
     responsibility within the Department, except for the 
     Secretary, for all activities and matters relating to 
     homeownership counseling and rental housing counseling, 
     including--
       ``(i) research, grant administration, public outreach, and 
     policy development relating to such counseling; and
       ``(ii) establishment, coordination, and administration of 
     all regulations, requirements, standards, and performance 
     measures under programs and laws administered by the 
     Department that relate to housing counseling, homeownership 
     counseling (including maintenance of homes), mortgage-related 
     counseling (including home equity conversion mortgages and 
     credit protection options to avoid foreclosure), and rental 
     housing counseling, including the requirements, standards, 
     and performance measures relating to housing counseling.
       ``(B) Specific functions.--The Director shall carry out the 
     functions assigned to the Director and the Office under this 
     section and any other provisions of law. Such functions shall 
     include establishing rules necessary for--
       ``(i) the counseling procedures under section 106(g)(1) of 
     the Housing and Urban Development Act of 1968 (12 U.S.C. 
     1701x(h)(1));
       ``(ii) carrying out all other functions of the Secretary 
     under section 106(g) of the Housing and Urban Development Act 
     of 1968, including the establishment, operation, and 
     publication of the availability of the toll-free telephone 
     number under paragraph (2) of such section;
       ``(iii) carrying out section 5 of the Real Estate 
     Settlement Procedures Act of 1974 (12 U.S.C. 2604) for home 
     buying information booklets prepared pursuant to such 
     section;
       ``(iv) carrying out the certification program under section 
     106(e) of the Housing and

[[Page 19503]]

     Urban Development Act of 1968 (12 U.S.C. 1701x(e));
       ``(v) carrying out the assistance program under section 
     106(a)(4) of the Housing and Urban Development Act of 1968, 
     including criteria for selection of applications to receive 
     assistance;
       ``(vi) carrying out any functions regarding abusive, 
     deceptive, or unscrupulous lending practices relating to 
     residential mortgage loans that the Secretary considers 
     appropriate, which shall include conducting the study under 
     section 6 of the Expand and Preserve Home Ownership Through 
     Counseling Act;
       ``(vii) providing for operation of the advisory committee 
     established under paragraph (4) of this subsection;
       ``(viii) collaborating with community-based organizations 
     with expertise in the field of housing counseling; and
       ``(ix) providing for the building of capacity to provide 
     housing counseling services in areas that lack sufficient 
     services.
       ``(4) Advisory committee.--
       ``(A) In general.--The Secretary shall appoint an advisory 
     committee to provide advice regarding the carrying out of the 
     functions of the Director.
       ``(B) Members.--Such advisory committee shall consist of 
     not more than 12 individuals, and the membership of the 
     committee shall equally represent all aspects of the mortgage 
     and real estate industry, including consumers.
       ``(C) Terms.--Except as provided in subparagraph (D), each 
     member of the advisory committee shall be appointed for a 
     term of 3 years. Members may be reappointed at the discretion 
     of the Secretary.
       ``(D) Terms of initial appointees.--As designated by the 
     Secretary at the time of appointment, of the members first 
     appointed to the advisory committee, 4 shall be appointed for 
     a term of 1 year and 4 shall be appointed for a term of 2 
     years.
       ``(E) Prohibition of pay; travel expenses.--Members of the 
     advisory committee shall serve without pay, but shall receive 
     travel expenses, including per diem in lieu of subsistence, 
     in accordance with applicable provisions under subchapter I 
     of chapter 57 of title 5, United States Code.
       ``(F) Advisory role only.--The advisory committee shall 
     have no role in reviewing or awarding housing counseling 
     grants.
       ``(5) Scope of homeownership counseling.--In carrying out 
     the responsibilities of the Director, the Director shall 
     ensure that homeownership counseling provided by, in 
     connection with, or pursuant to any function, activity, or 
     program of the Department addresses the entire process of 
     homeownership, including the decision to purchase a home, the 
     selection and purchase of a home, issues arising during or 
     affecting the period of ownership of a home (including 
     refinancing, default and foreclosure, and other financial 
     decisions), and the sale or other disposition of a home.''.

     SEC. 3. COUNSELING PROCEDURES.

       (a) In General.--Section 106 of the Housing and Urban 
     Development Act of 1968 (12 U.S.C. 1701x) is amended by 
     adding at the end the following new subsection:
       ``(g) Procedures and Activities.--
       ``(1) Counseling procedures.--
       ``(A) In general.--The Secretary shall establish, 
     coordinate, and monitor the administration by the Department 
     of Housing and Urban Development of the counseling procedures 
     for homeownership counseling and rental housing counseling 
     provided in connection with any program of the Department, 
     including all requirements, standards, and performance 
     measures that relate to homeownership and rental housing 
     counseling.
       ``(B) Homeownership counseling.--For purposes of this 
     subsection and as used in the provisions referred to in this 
     subparagraph, the term `homeownership counseling' means 
     counseling related to homeownership and residential mortgage 
     loans. Such term includes counseling related to homeownership 
     and residential mortgage loans that is provided pursuant to--
       ``(i) section 105(a)(20) of the Housing and Community 
     Development Act of 1974 (42 U.S.C. 5305(a)(20));
       ``(ii) in the United States Housing Act of 1937--

       ``(I) section 9(e) (42 U.S.C. 1437g(e));
       ``(II) section 8(y)(1)(D) (42 U.S.C. 1437f(y)(1)(D));
       ``(III) section 18(a)(4)(D) (42 U.S.C. 1437p(a)(4)(D));
       ``(IV) section 23(c)(4) (42 U.S.C. 1437u(c)(4));
       ``(V) section 32(e)(4) (42 U.S.C. 1437z-4(e)(4));
       ``(VI) section 33(d)(2)(B) (42 U.S.C. 1437z-5(d)(2)(B));
       ``(VII) sections 302(b)(6) and 303(b)(7) (42 U.S.C. 
     1437aaa-1(b)(6), 1437aaa-2(b)(7)); and
       ``(VIII) section 304(c)(4) (42 U.S.C. 1437aaa-3(c)(4));

       ``(iii) section 302(a)(4) of the American Homeownership and 
     Economic Opportunity Act of 2000 (42 U.S.C. 1437f note);
       ``(iv) sections 233(b)(2) and 258(b) of the Cranston-
     Gonzalez National Affordable Housing Act (42 U.S.C. 
     12773(b)(2), 12808(b));
       ``(v) this section and section 101(e) of the Housing and 
     Urban Development Act of 1968 (12 U.S.C. 1701x, 1701w(e));
       ``(vi) section 220(d)(2)(G) of the Low-Income Housing 
     Preservation and Resident Homeownership Act of 1990 (12 
     U.S.C. 4110(d)(2)(G));
       ``(vii) sections 422(b)(6), 423(b)(7), 424(c)(4), 
     442(b)(6), and 443(b)(6) of the Cranston-Gonzalez National 
     Affordable Housing Act (42 U.S.C. 12872(b)(6), 12873(b)(7), 
     12874(c)(4), 12892(b)(6), and 12893(b)(6));
       ``(viii) section 491(b)(1)(F)(iii) of the McKinney-Vento 
     Homeless Assistance Act (42 U.S.C. 11408(b)(1)(F)(iii));
       ``(ix) sections 202(3) and 810(b)(2)(A) of the Native 
     American Housing and Self-Determination Act of 1996 (25 
     U.S.C. 4132(3), 4229(b)(2)(A));
       ``(x) in the National Housing Act--

       ``(I) in section 203 (12 U.S.C. 1709), the penultimate 
     undesignated paragraph of paragraph (2) of subsection (b), 
     subsection (c)(2)(A), and subsection (r)(4);
       ``(II) subsections (a) and (c)(3) of section 237 (12 U.S.C. 
     1715z-2); and
       ``(III) subsections (d)(2)(B) and (m)(1) of section 255 (12 
     U.S.C. 1715z-20);

       ``(xi) section 502(h)(4)(B) of the Housing Act of 1949 (42 
     U.S.C. 1472(h)(4)(B)); and
       ``(xii) section 508 of the Housing and Urban Development 
     Act of 1970 (12 U.S.C. 1701z-7).
       ``(C) Rental housing counseling.--For purposes of this 
     subsection, the term `rental housing counseling' means 
     counseling related to rental of residential property, which 
     may include counseling regarding future homeownership 
     opportunities and providing referrals for renters and 
     prospective renters to entities providing counseling and 
     shall include counseling related to such topics that is 
     provided pursuant to--
       ``(i) section 105(a)(20) of the Housing and Community 
     Development Act of 1974 (42 U.S.C. 5305(a)(20));
       ``(ii) in the United States Housing Act of 1937--

       ``(I) section 9(e) (42 U.S.C. 1437g(e));
       ``(II) section 18(a)(4)(D) (42 U.S.C. 1437p(a)(4)(D));
       ``(III) section 23(c)(4) (42 U.S.C. 1437u(c)(4));
       ``(IV) section 32(e)(4) (42 U.S.C. 1437z-4(e)(4));
       ``(V) section 33(d)(2)(B) (42 U.S.C. 1437z-5(d)(2)(B)); and
       ``(VI) section 302(b)(6) (42 U.S.C. 1437aaa-1(b)(6));

       ``(iii) section 233(b)(2) of the Cranston-Gonzalez National 
     Affordable Housing Act (42 U.S.C. 12773(b)(2));
       ``(iv) section 106 of the Housing and Urban Development Act 
     of 1968 (12 U.S.C. 1701x);
       ``(v) section 422(b)(6) of the Cranston-Gonzalez National 
     Affordable Housing Act (42 U.S.C. 12872(b)(6));
       ``(vi) section 491(b)(1)(F)(iii) of the McKinney-Vento 
     Homeless Assistance Act (42 U.S.C. 11408(b)(1)(F)(iii));
       ``(vii) sections 202(3) and 810(b)(2)(A) of the Native 
     American Housing and Self-Determination Act of 1996 (25 
     U.S.C. 4132(3), 4229(b)(2)(A)); and
       ``(viii) the rental assistance program under section 8 of 
     the United States Housing Act of 1937 (42 U.S.C. 1437f).
       ``(2) Standards for materials.--The Secretary, in 
     conjunction with the advisory committee established under 
     section 4(g)(4) of the Department of Housing and Urban 
     Development Act (42 U.S.C. 3533(g)(4), shall establish 
     standards for materials and forms to be used, as appropriate, 
     by organizations providing homeownership counseling services, 
     including any recipients of assistance pursuant to subsection 
     (a)(4).
       ``(3) Mortgage software systems.--
       ``(A) Certification.--The Secretary shall provide for the 
     certification of various computer software programs for 
     consumers to use in evaluating different residential mortgage 
     loan proposals. The Secretary shall require, for such 
     certification, that the mortgage software systems take into 
     account--
       ``(i) the consumer's financial situation and the cost of 
     maintaining a home, including insurance, taxes, and 
     utilities;
       ``(ii) the amount of time the consumer expects to remain in 
     the home or expected time to maturity of the loan;
       ``(iii) such other factors as the Secretary considers 
     appropriate to assist the consumer in evaluating whether to 
     pay points, to lock in an interest rate, to select an 
     adjustable or fixed rate loan, to select a conventional or 
     government-insured or guaranteed loan and to make other 
     choices during the loan application process.

     If the Secretary determines that available existing software 
     is inadequate to assist consumers during the residential 
     mortgage loan application process, the Secretary shall 
     arrange for the development by private sector software 
     companies of new mortgage software systems that meet the 
     Secretary's specifications.
       ``(B) Use and initial availability.--Such certified 
     computer software programs shall be used to supplement, not 
     replace, housing counseling. The Secretary shall provide that 
     such programs are initially used only in connection with the 
     assistance of housing counselors certified pursuant to 
     subsection (e).
       ``(C) Availability.--After a period of initial availability 
     under subparagraph (B) as the Secretary considers 
     appropriate, the Secretary shall take reasonable steps to 
     make mortgage software systems certified pursuant to this 
     paragraph widely available through the Internet and at public 
     locations, including public libraries, senior-citizen 
     centers, public housing sites, offices of public housing 
     agencies that administer rental

[[Page 19504]]

     housing assistance vouchers, and housing counseling centers.
       ``(4) National public service multimedia campaigns to 
     promote housing counseling.--
       ``(A) In general.--The Director of Housing Counseling shall 
     develop, implement, and conduct national public service 
     multimedia campaigns designed to make persons facing mortgage 
     foreclosure, persons considering a subprime mortgage loan to 
     purchase a home, elderly persons, persons who face language 
     barriers, low-income persons, and other potentially 
     vulnerable consumers aware that it is advisable, before 
     seeking or maintaining a residential mortgage loan, to obtain 
     homeownership counseling from an unbiased and reliable 
     sources and that such homeownership counseling is available, 
     including through programs sponsored by the Secretary of 
     Housing and Urban Development.
       ``(B) Contact information.--Each segment of the multimedia 
     campaign under subparagraph (A) shall publicize the toll-free 
     telephone number and web site of the Department of Housing 
     and Urban Development through which persons seeking housing 
     counseling can locate a housing counseling agency in their 
     State that is certified by the Secretary of Housing and Urban 
     Development and can provide advice on buying a home, renting, 
     defaults, foreclosures, credit issues, and reverse mortgages.
       ``(C) Authorization of appropriations.--There are 
     authorized to be appropriated to the Secretary, not to exceed 
     $3,000,000 for fiscal years 2008, 2009, and 2010, for the 
     develop, implement, and conduct of national public service 
     multimedia campaigns under this paragraph.
       ``(5) Education programs.--The Secretary shall provide 
     advice and technical assistance to States, units of general 
     local government, and nonprofit organizations regarding the 
     establishment and operation of, including assistance with the 
     development of content and materials for, educational 
     programs to inform and educate consumers, particularly those 
     most vulnerable with respect to residential mortgage loans 
     (such as elderly persons, persons facing language barriers, 
     low-income persons, and other potentially vulnerable 
     consumers), regarding home mortgages, mortgage refinancing, 
     home equity loans, and home repair loans.''.
       (b) Conforming Amendments to Grant Program for 
     Homeownership Counseling Organizations.--Section 
     106(c)(5)(A)(ii) of the Housing and Urban Development Act of 
     1968 (12 U.S.C. 1701x(c)(5)(A)(ii)) is amended--
       (1) in subclause (III), by striking ``and'' at the end;
       (2) in subclause (IV) by striking the period at the end and 
     inserting ``; and''; and
       (3) by inserting after subclause (IV) the following new 
     subclause:

       ``(V) notify the housing or mortgage applicant of the 
     availability of mortgage software systems provided pursuant 
     to subsection (g)(3).''.

     SEC. 4. GRANTS FOR HOUSING COUNSELING ASSISTANCE.

       Section 106(a) of the Housing and Urban Development Act of 
     1968 (12 U.S.C. 1701x(a)(3)) is amended by adding at the end 
     the following new paragraph:
       ``(4) Homeownership and rental counseling assistance.--
       ``(A) In general.--The Secretary shall make financial 
     assistance available under this paragraph to States, units of 
     general local governments, and nonprofit organizations 
     providing homeownership or rental counseling (as such terms 
     are defined in subsection (g)(1)).
       ``(B) Qualified entities.--The Secretary shall establish 
     standards and guidelines for eligibility of organizations 
     (including governmental and nonprofit organizations) to 
     receive assistance under this paragraph.
       ``(C) Distribution.--Assistance made available under this 
     paragraph shall be distributed in a manner that encourages 
     efficient and successful counseling programs.
       ``(D) Authorization of appropriations.--There are 
     authorized to be appropriated $45,000,000 for each of fiscal 
     years 2008 through 2011 for--
       ``(i) the operations of the Office of Housing Counseling of 
     the Department of Housing and Urban Development;
       ``(ii) the responsibilities of the Secretary under 
     paragraphs (2) through (5) of subsection (g); and
       ``(iii) assistance pursuant to this paragraph for entities 
     providing homeownership and rental counseling.''.

     SEC. 5. REQUIREMENTS TO USE HUD-CERTIFIED COUNSELORS UNDER 
                   HUD PROGRAMS.

       Section 106(e) of the Housing and Urban Development Act of 
     1968 (12 U.S.C. 1701x(e)) is amended--
       (1) by striking paragraph (1) and inserting the following 
     new paragraph:
       ``(1) Requirement for assistance.--An organization may not 
     receive assistance for counseling activities under subsection 
     (a)(1)(iii), (a)(2), (a)(4), (c), or (d) of this section, or 
     under section 101(e), unless the organization, or the 
     individuals through which the organization provides such 
     counseling, has been certified by the Secretary under this 
     subsection as competent to provide such counseling.'';
       (2) in paragraph (2)--
       (A) by inserting ``and for certifying organizations'' 
     before the period at the end of the first sentence; and
       (B) in the second sentence by striking ``for 
     certification'' and inserting ``, for certification of an 
     organization, that each individual through which the 
     organization provides counseling shall demonstrate, and, for 
     certification of an individual,'';
       (3) in paragraph (3), by inserting ``organizations and'' 
     before ``individuals'';
       (4) by redesignating paragraph (3) as paragraph (5); and
       (5) by inserting after paragraph (2) the following new 
     paragraphs:
       ``(3) Requirement under hud programs.--Any homeownership 
     counseling or rental housing counseling (as such terms are 
     defined in subsection (g)(1)) required under, or provided in 
     connection with, any program administered by the Department 
     of Housing and Urban Development shall be provided only by 
     organizations or counselors certified by the Secretary under 
     this subsection as competent to provide such counseling.
       ``(4) Outreach.--The Secretary shall take such actions as 
     the Secretary considers appropriate to ensure that 
     individuals and organizations providing homeownership or 
     rental housing counseling are aware of the certification 
     requirements and standards of this subsection and of the 
     training and certification programs under subsection (f).''.

     SEC. 6. STUDY OF DEFAULTS AND FORECLOSURES.

       The Secretary of Housing and Urban Development shall 
     conduct an extensive study of the root causes of default and 
     foreclosure of home loans, using as much empirical data as 
     are available. The study shall also examine the role of 
     escrow accounts in helping prime and nonprime borrowers to 
     avoid defaults and foreclosures. Not later than 12 months 
     after the date of the enactment of this Act, the Secretary 
     shall submit to the Congress a preliminary report regarding 
     the study. Not later than 24 months after such date of 
     enactment, the Secretary shall submit a final report 
     regarding the results of the study, which shall include any 
     recommended legislation relating to the study, and 
     recommendations for best practices and for a process to 
     identify populations that need counseling the most.

     SEC. 7. DEFINITIONS FOR COUNSELING-RELATED PROGRAMS.

       Section 106 of the Housing and Urban Development Act of 
     1968 (12 U.S.C. 1701x), as amended by the preceding 
     provisions of this Act, is further amended by adding at the 
     end the following new subsection:
       ``(h) Definitions.--For purposes of this section:
       ``(1) Nonprofit organization.--The term `nonprofit 
     organization' has the meaning given such term in section 
     104(5) of the Cranston-Gonzalez National Affordable Housing 
     Act (42 U.S.C. 12704(5)), except that subparagraph (D) of 
     such section shall not apply for purposes of this section.
       ``(2) State.--The term `State' means each of the several 
     States, the Commonwealth of Puerto Rico, the District of 
     Columbia, the Commonwealth of the Northern Mariana Islands, 
     Guam, the Virgin Islands, American Samoa, the Trust 
     Territories of the Pacific, or any other possession of the 
     United States.
       ``(3) Unit of general local government.--The term `unit of 
     general local government' means any city, county, parish, 
     town, township, borough, village, or other general purpose 
     political subdivision of a State.''.

     SEC. 8. UPDATING AND SIMPLIFICATION OF MORTGAGE INFORMATION 
                   BOOKLET.

       Section 5 of the Real Estate Settlement Procedures Act of 
     1974 (12 U.S.C. 2604) is amended--
       (1) in the section heading, by striking ``special'' and 
     inserting ``home buying'' ;
       (2) by striking subsections (a) and (b) and inserting the 
     following new subsections:
       ``(a) Preparation and Distribution.--The Secretary shall 
     prepare, at least once every 5 years, a booklet to help 
     consumers applying for federally related mortgage loans to 
     understand the nature and costs of real estate settlement 
     services. The Secretary shall prepare the booklet in various 
     languages and cultural styles, as the Secretary determines to 
     be appropriate, so that the booklet is understandable and 
     accessible to homebuyers of different ethnic and cultural 
     backgrounds. The Secretary shall distribute such booklets to 
     all lenders that make federally related mortgage loans. The 
     Secretary shall also distribute to such lenders lists, 
     organized by location, of homeownership counselors certified 
     under section 106(e) of the Housing and Urban Development Act 
     of 1968 (12 U.S.C. 1701x(e)) for use in complying with the 
     requirement under subsection (c) of this section.
       ``(b) Contents.--Each booklet shall be in such form and 
     detail as the Secretary shall prescribe and, in addition to 
     such other information as the Secretary may provide, shall 
     include in plain and understandable language the following 
     information:
       ``(1) A description and explanation of the nature and 
     purpose of the costs incident to a real estate settlement or 
     a federally related mortgage loan. The description and 
     explanation shall provide general information about the 
     mortgage process as well as specific information concerning, 
     at a minimum--

[[Page 19505]]

       ``(A) balloon payments;
       ``(B) prepayment penalties; and
       ``(C) the trade-off between closing costs and the interest 
     rate over the life of the loan.
       ``(2) An explanation and sample of the uniform settlement 
     statement required by section 4.
       ``(3) A list and explanation of lending practices, 
     including those prohibited by the Truth in Lending Act or 
     other applicable Federal law, and of other unfair practices 
     and unreasonable or unnecessary charges to be avoided by the 
     prospective buyer with respect to a real estate settlement.
       ``(4) A list and explanation of questions a consumer 
     obtaining a federally related mortgage loan should ask 
     regarding the loan, including whether the consumer will have 
     the ability to repay the loan, whether the consumer 
     sufficiently shopped for the loan, whether the loan terms 
     include prepayment penalties or balloon payments, and whether 
     the loan will benefit the borrower.
       ``(5) An explanation of the right of rescission as to 
     certain transactions provided by sections 125 and 129 of the 
     Truth in Lending Act.
       ``(6) A brief explanation of the nature of a variable rate 
     mortgage and a reference to the booklet entitled `Consumer 
     Handbook on Adjustable Rate Mortgages', published by the 
     Board of Governors of the Federal Reserve System pursuant to 
     section 226.19(b)(1) of title 12, Code of Federal 
     Regulations, or to any suitable substitute of such booklet 
     that such Board of Governors may subsequently adopt pursuant 
     to such section.
       ``(7) A brief explanation of the nature of a home equity 
     line of credit and a reference to the pamphlet required to be 
     provided under section 127A of the Truth in Lending Act.
       ``(8) Information about homeownership counseling services 
     made available pursuant to section 106(a)(4) of the Housing 
     and Urban Development Act of 1968 (12 U.S.C. 1701x(a)(4)), a 
     recommendation that the consumer use such services, and 
     notification that a list of certified providers of 
     homeownership counseling in the area, and their contact 
     information, is available.
       ``(9) An explanation of the nature and purpose of escrow 
     accounts when used in connection with loans secured by 
     residential real estate and the requirements under section 10 
     of this Act regarding such accounts.
       ``(10) An explanation of the choices available to buyers of 
     residential real estate in selecting persons to provide 
     necessary services incidental to a real estate settlement.
       ``(11) An explanation of a consumer's responsibilities, 
     liabilities, and obligations in a mortgage transaction.
       ``(12) An explanation of the nature and purpose of real 
     estate appraisals, including the difference between an 
     appraisal and a home inspection.
       ``(13) Notice that the Office of Housing of the Department 
     of Housing and Urban Development has made publicly available 
     a brochure regarding loan fraud and a World Wide Web address 
     and toll-free telephone number for obtaining the brochure.

     The booklet prepared pursuant to this section shall take into 
     consideration differences in real estate settlement 
     procedures that may exist among the several States and 
     territories of the United States and among separate political 
     subdivisions within the same State and territory.'';
       (3) in subsection (c), by inserting at the end the 
     following new sentence: ``Each lender shall also include with 
     the booklet a reasonably complete or updated list of 
     homeownership counselors who are certified pursuant to 
     section 106(e) of the Housing and Urban Development Act of 
     1968 (12 U.S.C. 1701x(e)) and located in the area of the 
     lender.''; and
       (4) in subsection (d), by inserting after the period at the 
     end of the first sentence the following: ``The lender shall 
     provide the HUD-issued booklet in the version that is most 
     appropriate for the person receiving it.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Georgia (Mr. Scott) and the gentlewoman from Illinois (Mrs. Biggert) 
each will control 20 minutes.
  The Chair recognizes the gentleman Georgia.


                             General Leave

  Mr. SCOTT of Georgia. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days within which to revise and extend 
their remarks on this legislation and to insert extraneous materials 
thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Georgia?
  There was no objection.
  Mr. SCOTT of Georgia. Mr. Speaker, I yield myself as much time as I 
may consume.
  Today, I rise in support of H.R. 3019, the Expand and Preserve Home 
Ownership through Counseling Act. This important legislation 
establishes an office of housing counseling at the Department of 
Housing and Urban Development to carry out and to coordinate the 
responsibilities of the Department with respect to counseling on 
homeownership and rental housing issues.
  The House of Representatives has already approved this bipartisan 
bill in three separate measures that have passed during this Congress. 
They include H.R. 3915, the Mortgage Reform and Anti-Predatory Lending 
Act of 2007; H.R. 5830, the FHA Housing Stabilization and Home 
Ownership Retention Act of 2008; and the initial House version of H.R. 
3221, the Housing and Economic Recovery Act of 2008.

                              {time}  1815

  Given that the Senate has yet to act upon this important housing 
counseling measure, it is important that the House pass this 
legislation as a stand-alone bill.
  HUD's current Housing Counseling Program authorizes HUD to provide or 
contract with organizations to provide counseling and advice to 
tenants, homeowners and low and moderate income families on a range of 
housing issues. However, the current program lacks the stature, 
organization and prominence in the Department to help ensure that its 
counseling activities are high quality, widely available and well-
coordinated within other Department activities.
  In the midst of this foreclosure crisis, this extraordinary crisis we 
are going through at this very moment in our financial markets, there 
can be no doubt that housing counseling, whether it is pre-purchase or 
post-purchase, is a vital component of the homeownership process, and I 
urge this House to support this bill, which will create an Office of 
Housing Counseling at HUD to better focus the Department's resources in 
this area.
  Now, specifically this bill will do the following: It establishes an 
Office of Housing Counseling to carry out and coordinate the 
responsibilities of the Department with respect to counseling on 
homeownership and rental housing issues; it will require and facilitate 
the coordination of HUD's homeownership and rental housing counseling 
programs, including programs targeted at low and moderate income 
individuals, the homeless and senior citizens; it will require the 
launch of a national public service multi-media campaign to promote 
housing counseling, including the establishment of a Web site and toll-
free hotline; and it will authorize the assurance of homeownership and 
rental housing counseling grants to HUD-certified State, local and 
nonprofit organizations.
  This is an important and critical piece of legislation, and much 
needed, for all we know that the need for housing counseling far 
outstrips its current availability. The enactment of H.R. 3019 is a 
major step in addressing this need in a very comprehensive, thorough, 
efficient and effective manner, and I urge this full House to support 
this very important bipartisan home counseling legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mrs. BIGGERT. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, as the author of H.R. 3019, the Expand and Preserve Home 
Ownership Through Counseling Act, I urge my colleagues to support this 
legislation. First let me thank Congressman Ruben Hinojosa for being 
the lead Democrat on this bill.
  In 2005, we founded the House Financial and Economic Literacy Caucus, 
which is now over 75 members strong, and we have been working together 
on this issue for a very long time. This bill is just one more example 
of how financial literacy can promote economic security and empower 
Americans to make more informed decisions.
  Second, I would like to thank Chairman Frank and Ranking Member 
Bachus for their support for this legislation. Both the chairman and 
ranking member have included the language of this bill in various 
mortgage and housing packages, two of which, as Mr. Scott said, have 
previously passed the House but not the other Chamber. The first time 
was in November of 2007, and the second time was in H.R. 3221, and that 
bill passed the House on May 8 of this year. Unfortunately, the Senate 
has not yet acted on this important

[[Page 19506]]

legislation. It is my hope that the Senate will consider the bill as a 
stand-alone measure and send it to the President's desk before we 
adjourn this year.
  What does the bill do? Well, it elevates housing counseling within 
the Department of Housing and Urban Development by establishing an 
Office of Housing Counseling and a director of that office who reports 
directly to the Secretary of HUD. The office will be tasked with 
carrying out and coordinating HUD's Home Ownership and Housing Rental 
Counseling Program, targeted at low and moderate income individuals, 
the homeless and the seniors, just to name a few.
  More specifically, the bill authorizes $180 million over the next 4 
years for HUD to operate this office, offer grants to State and local 
counseling agencies and launch a national outreach campaign. The bill 
also calls for the office to provide a report to Congress on the root 
causes of defaults and foreclosures, including recommendations for 
policy reforms and best practices, as well as identification of 
populations most in need of counseling.
  Mr. Speaker, counseling can help guide homeowners into a loan that 
best meets their budgets and needs, steering them way from possible 
foreclosure down the road. Housing counseling, one form of financial 
literacy, is often the first line of defense that first-time home 
buyers have against predatory lending practices.
  In addition, counselors can save the homes of borrowers currently 
facing foreclosure. So many troubled mortgage holders genuinely want to 
pay for their home and had solid payment histories before their rates 
were reset. These are people that if given the right refinancing 
options, can and would be able to make their monthly payments. But they 
need someone to help them evaluate their options, guide them through 
the process and facilitate discussions with their current lenders.
  One thing that we have learned during this downturn in the housing 
market is that many Americans need to better understand the terms of 
financial products, including and especially mortgages. Education is 
one of the most important tools in our arsenal to keep our economy and 
American families on sound financial footing. It is my hope that by 
providing greater access to home counseling services, we can help to 
prevent a repeat performance of the recent housing bubble.
  Mr. Speaker, I would like to conclude today by thanking the folks at 
the DuPage Homeownership Center of Northern Will County in Illinois. 
They have helped so many residents of the 13th Congressional District 
of Illinois to secure sound mortgages or avoid foreclosure. And I would 
like to thank all the counselors and organizations across the country 
that are now involved in the HOPE NOW initiative, which reported last 
month it had helped over 2 million homeowners to avoid foreclosure.
  With that, I would urge my colleagues to support the bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SCOTT of Georgia. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, as we conclude this, let me state the appreciation this 
entire Congress has for the distinguished leadership of Mrs. Biggert on 
this issue. She has been a pioneer in financial literacy. She has 
committed a tremendous amount of her time and energy to this bill and 
to other bills. I want to commend her for that.
  Another bill which she has provided leadership on has been a 
financial literacy bill of utmost importance as we see now, and that is 
K through 12th grade literacy programs, to get them into our schools. I 
think it is very important for all of us here to know, and the Nation 
to know, that Mrs. Biggert has provided sterling leadership on this 
entire issue of financial literacy. I certainly want to say how 
appreciative we all are for that leadership, Mrs. Biggert.
  It points out, Mr. Speaker, as we look at where we are today with the 
downturn of the financial markets, the meltdown of our mortgage 
industry, at the core of it as we peel back the reasons and the causes 
we will all find and come to the conclusion that we have a tremendous 
need for financial literacy and financial education, because the core 
of our problem is that there are so many complicated and complex 
entities involved in financing, that we as a nation are coming up short 
on financial literacy.
  To you, Mrs. Biggert, I thank you for your leadership on this. It has 
indeed been a pleasure working with you on this subject, and this bill 
is a testimonial to your leadership.
  Mr. Speaker, I have no further requests for time, and I yield back 
the balance of my time.
  Mrs. BIGGERT. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I thank the gentleman from Georgia (Mr. Scott) for his 
very kind words. I really appreciate it. He is a wonderful member of 
the Financial Services Committee and is always there and always knows 
what is going on and always participates and does a good job. I thank 
you for all your work.
  With that, I urge my colleagues to support this bill.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise today in strong support 
of of H.R. 3019, to expand and preserve home ownership through 
counseling, introduced by my colleague from Illinois, Representative 
Biggert. This important legislation will amend the Department of 
Housing and Urban Development Act to establish an Office of Housing 
Counseling which will conduct activities relating to homeownership and 
rental housing counseling.


                                GENERAL

  When the crisis in the mortgage industry began, it primarily hit 
subprime borrowers. As the foreclosure crisis endured, home values 
started declining and eventually affected homeowners who are considered 
to be prime borrowers. This amendment to the Housing and Urban 
Development Act of 1968 will require a number of different stipulations 
that will encourage the expansion of home ownership with adequate 
information to make an informed decision. These stipulations include:
  Directing the Office of the Secretary to establish, coordinate, and 
monitor Housing and Urban Development (HUD) administration of 
homeownership and rental housing counseling procedures provided in 
connection with any HUB program, including all related requirements, 
standards, and performance measures.
  Requiring the Office of the Secretary to provide certification for 
various computer software programs for consumers to use in evaluating 
different residential mortgage loan proposals.
  Encouraging the Director of Housing Counseling to develop, implement, 
and conduct national public service multimedia campaigns designed to 
make potential homeowners aware that counseling is available from 
unbiased and reliable sources.
  Requiring the Secretary to provide technical and financial assistance 
to State governments, local governments, and non-profit organizations.
  Directing the Secretary to study and report to Congress the root 
cause of default and foreclosure on homes.
  Amending the Real Estate Settlement Procedures Act of 1974 to revise 
requirements for HUD booklets designed to help consumers applying for 
federally related mortgage loans to understand the nature of real 
estate settlement services.


                               MINORITIES

  Problematic, unaffordable subprime loans are more often issued to 
African-American and Latino homebuyers. Nationally, African-American 
home purchasers were 2.7 times more likely to be issued a high cost 
loan than white borrowers. Latinos were 2.3 times more likely to be 
issued a high cost home purchase loan than white borrowers. Similarly, 
for refinance loans, African-Americans were 1.8 times more likely to be 
issued a high cost loan than whites. Latinos were 1.4 times more likely 
to be burdened with a high refinance cost loan than white homeowners.
  These racial disparities persist even among homeowners of the same 
income level. In comparative terms, upper-income African-Americans were 
3.3 times more likely than upper-income whites to be issued a high cost 
loan when purchasing a home. Upper-income Latinos were 3 times more 
likely than upper-income whites to be issued a high cost loan when 
purchasing a home.
  America's lower-income and minority communities receive a 
disproportionate number of subprime loans and are therefore most 
exposed to experience default and foreclosure. Based on public data for 
2006 available under the Home Mortgage Disclosure Act (HMDA),

[[Page 19507]]

this report examines the extent of high-cost lending for 172 
metropolitan areas, determines the disparities between borrowers of 
various races and income levels and identifies metropolitan areas that 
are at highest risk of facing concentrated foreclosures


                               CONCLUSION

  I firmly believe that we must pass this legislation in order to 
create equal terms and equal information for every homeowner or 
potential homeowner in America. This legislation will ensure that 
information is equally available to all homebuyers and enable every 
person to have a fair chance to obtain the information necessary to 
make informed financial decisions. There is a disparity of information 
in our current mortgage system and H.R. 3019 will enable the Government 
to alleviate this disparity by improving the flow of information 
through house owner counseling.
  I urge my colleagues to support H.R. 3019 as well, as together we 
search for solutions that will help constituents throughout the United 
States.
  Mrs. BIGGERT. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Georgia (Mr. Scott) that the House suspend the rules and 
pass the bill, H.R. 3019, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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