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Congress·In Committee·3 months ago

Congress moves to tighten oversight of housing counselors and offer help to borrowers 30+ days behind

Legislative Progress

✓ Filed
Review
House
Senate
President

Impacts

Mixed Impacts(1)
Renter
Neutral
Positive Impacts(4)
Military Veteran
Helps
Tribal Member
Helps
Housing Assistance
Helps
Homeowner
Helps

Key Points

  • Would require HUD to make sure housing counseling grant money goes to a mix of groups that serve both urban and rural areas.
  • Gives HUD clearer power to review counseling agencies, including on-site visits, and check whether they follow program rules.
  • Lets HUD compare individual counselors’ results by looking at how often counseled borrowers fall behind on certain government-backed home loans in similar markets.
  • Allows HUD to require more training, retesting, or suspend a counselor’s certification if they’re found not competent, as long as it won’t leave an area without enough counselors.
  • Requires lenders/servicers to give borrowers who are 30+ days behind on certain government-backed mortgages a chance to get foreclosure-mitigation counseling; some costs could be paid by a federal mortgage insurance fund.
HousingConsumer Protection

Milestones

2 milestones2 actions
Dec 15, 2025House

Referred to the House Committee on Financial Services.

Dec 15, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

After the bill becomes law; likely months later

HUD updates (or issues) rules explaining how counselor performance reviews, retesting, and certification suspensions will work

Counselors and agencies would learn the exact metrics and steps that could affect funding, staffing, and which counselors can keep serving families

After HUD sets up the review schedule and process

HUD begins doing periodic on-site reviews and required performance reviews for participating agencies

Some counseling agencies will have more audits and paperwork, and strong agencies may be able to show they’re delivering high-quality help

As loan servicers and counseling agencies implement the new requirement

Delinquent borrowers (30+ days late) with covered government-backed mortgages are offered foreclosure-mitigation counseling

If you’re behind on payments, you should be told about counseling and given a chance to get help earlier, before foreclosure moves forward

After HUD/FHA confirms the payment process meets existing FHA requirements

For eligible delinquent FHA borrowers, counseling fees begin being paid from the FHA Mutual Mortgage Insurance Fund

Some households behind on an FHA loan may be able to get counseling without paying out of pocket, making it more likely they actually use the service

During future grant renewal cycles after performance reviews start

Agencies that fail program requirements can receive a 60-day notice that renewal funding may be denied

Local counseling programs may have time to fix problems or explain what went wrong before losing funding that keeps doors open

Within the 60-day notice window whenever HUD proposes denial of renewal

Agencies can request an informal conference with HUD leadership when renewal is at risk

Counseling agencies get a chance to argue their case (for example, if loan companies didn’t cooperate), which could protect access to counseling in the community

Related News

4 articles
LegiStorm·3 months ago

David Scott, Joyce Beatty, and Cleo Fields Introduce Legislation to Strengthen HUD Oversight of Housing Counselors and Protect Homebuyers

Press release describing introduction of H.R. 6726, expanding HUD oversight (on-site reviews, performance reviews, retesting/suspension) and offering counseling to 30+ day delinquent borrowers on covered government-backed loans.

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LegiStorm·2 months ago

Beatty Scores Major Unanimous Affordable Housing Wins in Financial Services Committee

Press release recap noting H.R. 6726 (Reforms to Housing Counseling and Financial Literacy Programs Act of 2025) and its foreclosure-mitigation counseling expansion for borrowers 30 days delinquent, funded via Mutual Mortgage Insurance Fund where eligible.

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Quiver Quantitative (Quiver CongressRadar)·2 months ago

Press Release: Joyce Beatty Leads Passage of Affordable Housing Provisions in House Financial Services Committee

AI-generated summary of a press release stating the committee advanced a housing package and highlighting H.R. 6726’s expansion of access to foreclosure counseling through the Mutual Mortgage Insurance Fund for at-risk borrowers.

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Source Information

Document Type

Congressional Bill

Official Title

To amend the Housing and Urban Development Act of 1968 to provide reforms to housing counseling and financial literacy programs.

Bill NumberHR 6726
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Financial Services.

Sponsor

Cosponsors

(2)
D: 2

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.