The House Committee on Financial Services has voted to advance the Housing Financial Literacy Act of 2019, which is designed to aid first-time homebuyers.
The measure, introduced by Rep. Joyce Beatty (D-OH), provides first-time homebuyers with a discount on their Federal Housing Administration (FHA) mortgage insurance premium of 25 basis points.
“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 our entire economy,” Beatty said. “I am pleased to see my bill move one step closer to becoming law and many thanks to my Democratic and Republican colleagues for their support.”
The effort involves first-time homebuyers completing a Department of Housing and Urban Development (HUD)-certified housing counseling course to be eligible for the discount. Studies confirm homebuyers receiving pre-purchase housing counseling are nearly one-third less likely to fall behind on their mortgage and face a reduced risk of foreclosure.
The legislation now moves from the Committee to the full House Floor for further consideration.
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