Bill > HR6726

This bill amends the Housing and Urban Development Act of 1968 to reform housing counseling and financial literacy programs by ensuring that organizations receiving assistance are geographically diverse and serve both urban and rural areas, replacing the previous requirement for "adequate distribution" and consideration of "foreclosure rates." It introduces a new "Performance Review" section allowing the Secretary of Housing and Urban Development (HUD) to conduct periodic on-site reviews and mandatory performance reviews of participating agencies, which will assess compliance with program requirements and may consider an individual counselor's performance against the default rates of borrowers of "covered mortgage loans" (loans secured by residential property for 1-4 families that are insured by the Federal Housing Administration or guaranteed by specific acts) in comparable markets. Based on these reviews, the Secretary can require additional training, retesting, or even permanently suspend a counselor's certification if they consistently demonstrate a lack of competence, provided this action doesn't significantly reduce housing counseling capacity in the area. The bill also allows the Secretary to deny renewal of assistance to organizations or entities not complying with program requirements, giving them at least 60 days' notice and the opportunity for an informal conference to present mitigating factors. Finally, it mandates that borrowers of "covered mortgage loans" (which now also include those made, guaranteed, or insured by the Department of Veterans Affairs or the Department of Agriculture) who are 30 days or more delinquent on payments must be offered the opportunity to participate in available housing counseling, with the cost of such counseling for certain loans being covered by the Mutual Mortgage Insurance Fund.

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https://www.congress.gov/bill/119th-congress/house-bill/6726/all-info