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house Bill H.R. 1395

Housing Financial Literacy Act of 2021

Bill Details

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Title

Housing Financial Literacy Act of 2021

Official Title

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.

Summary

Housing Financial Literacy Act of 2021 This bill modifies the discount given by 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 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.

bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
  • The house has not voted
      house Committees
      Committee on Financial Services
    IntroducedFebruary 26th, 2021
    Awesome bill!! Bipartisanship support!!!
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    Agree with the requirement that all applicants of FHA should be required to take a financial management program. I disagree with tieing that to a further decrease in the insurance premium. There's already a discount. Further decreasing the premium weakens the insurance, increases risk for the taxpayer. If the additional .25% is the difference between owning a home or not, then the buyer is not qualified to purchase the home.
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