Rep. Joyce Beatty (D-OH) introduced the Housing Financial Literacy Act of 2017 last week, a bill designed to increase first-time homebuyers’ financial knowledge and reduce mortgage payments.
First-time homebuyers who complete a Department of Housing and Urban Development-certified housing counseling course will qualify for a 25 basis point discount on their Federal Housing Administration mortgage insurance premium.
“Homeownership is the cornerstone of the American Dream,” Beatty said. “However, many Americans have limited knowledge of the long-term financial obligations and implications involved in buying a home. That is why the Housing Financial Literacy Act is so desperately needed. 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 community and entire U.S. economy.”
Homeowners who receive financial counseling before buying a house are one-third less likely to fall behind on their mortgage, studies show.
The bill is cosponsored by seven other members of Congress, including Rep. Steve Stivers (R-OH). Beatty and Stivers serve as co-chairs of the Congressional Financial and Economic Literacy Caucus for the 115th Congress.
The bipartisan Financial and Economic Literacy Caucus’ was established to improve the financial literacy of Americans and recommend financial and economic literacy policies, legislation, and programs at all levels of government.