To amend the Housing and Urban Development Act of 1968 to provide reforms to housing counseling and financial literacy programs.
Summary
H.R. 6726 aims to amend the Housing and Urban Development Act of 1968, focusing on reforms to housing counseling and financial literacy programs. The bill emphasizes geographically diverse distribution of counseling services, performance reviews of participating agencies, and counselor certification based on borrower default rates. It also mandates foreclosure mitigation counseling for delinquent borrowers with covered mortgage loans.
Expected Effects
The bill will likely lead to improved oversight and accountability in housing counseling programs. It may also result in more effective counseling services, potentially reducing foreclosure rates. Borrowers with delinquent mortgage loans will have increased access to counseling.
Potential Benefits
- Enhanced geographic diversity of housing counseling services.
- Improved performance reviews and accountability for counseling agencies.
- Potential reduction in foreclosure rates through more effective counseling.
- Increased access to foreclosure mitigation counseling for delinquent borrowers.
- Greater competence among housing counselors through certification requirements.
Potential Disadvantages
- Potential for reduced counseling capacity in some areas if counselors fail certification.
- Increased administrative burden for counseling agencies due to performance reviews.
- Possible challenges in accurately comparing counselor performance across different markets.
- Risk of unintended consequences from using default rates as a primary measure of counselor competence.
- Could lead to some organizations losing assistance if they don't meet the new compliance standards.
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause (Preamble). Congress has the power to regulate housing and financial matters under Article I, Section 8, which grants the power to collect taxes, pay debts, and provide for the common defense and general welfare of the United States. The bill does not appear to infringe on any specific constitutional rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).