Beatty Bipartisan Financial Literacy Bill Reintroduced in House

Statement

This week, U.S. Congresswoman Joyce Beatty (OH-03) reintroduced the Housing Financial Literacy Act of 2019, H.R. 2162 legislation aimed at increasing first-time homebuyers' financial knowledge. If enacted, the bill would give first-time homebuyers who complete a Department of Housing and Urban Development (HUD)-certified housing counseling course a discount on their Federal Housing Administration (FHA) mortgage insurance premium of 25 basis points (or 0.25 percent).

"Right now, too many Americans lack the basic knowledge and know-how to fully understand the long-term financial obligations and implications of purchasing a home," Beatty said. "Motivating first-time homebuyers to seek vital pre-purchase counseling and equipping them with the much-needed financial skills and tools to make informed financial decisions benefits their families, the surrounding neighborhood, and entire U.S. economy--and that is precisely why the Housing Financial Literacy Act is so desperately needed."

Studies confirm that homebuyers who receive pre-purchase housing counseling are nearly one-third less likely to fall behind on their mortgage and thereby face a reduced risk of foreclosure. H.R. 2162 is currently cosponsored by Congressman Steve Stivers (OH-15).

Of note, Beatty serves as co-chair of the Congressional Financial and Economic Literacy Caucus for the 116th Congress alongside Stivers. Established by former Congressman Rubén Hinojosa (D-TX) and former Congresswoman Judy Biggert (R-IL) in 2005, the bipartisan Financial and Economic Literacy Caucus' goal is to improve the financial literacy and capability of all people. Additionally, the Caucus reviews, discusses and recommends financial and economic literacy policies, legislation, programs and related matters at all levels of government, as well as collaborates with the private sector, respective nonprofits, community-based organizations and faith-based groups.

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