Reforms to Housing Counseling and Financial Literacy Programs
Section 101 · Sec. 101 ·
What this chapter is about
This part changes an older law about housing counseling. It tells the housing agency to check how counselors do their job. It lets the agency cut off money to groups that break the rules. It also says people behind on a home loan must be offered counseling.
The document says “is amended”Who acts: Secretary of Housing and Urban DevelopmentHow: statuteSec. 101 in the PDF
What the document says
“by striking ``adequate distribution'' and all that follows through ``foreclosure rates'' and inserting ``that the recipients are geographically diverse and include organizations that serve urban or rural areas'';”
The section amends section 106(a)(4)(C) of the Housing and Urban Development Act of 1968, replacing the existing wording about distribution with a requirement that recipients be geographically diverse and include organizations serving urban or rural areas.
What the document actually says
“by striking ``adequate distribution'' and all that follows through ``foreclosure rates'' and inserting ``that the recipients are geographically diverse and include organizations that serve urban or rural areas'';”
That sentence, in plain words
Some old words come out. New words go in. The new words say the groups picked must be spread out. Some must serve cities. Some must serve the country.
What this is about
Housing counseling groups help people buy or keep a home. Money for them comes from the housing agency. This rule says the money should not all go to one place.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: Secretary of Housing and Urban DevelopmentHow: statuteSec. 101 in the PDF
What the document says
“``(A) may conduct periodic reviews; and ``(B) shall conduct performance reviews of all organizations receiving assistance under this section that-- ``(i) consist of a review of the organization's compliance with all program requirements;”
The section adds a new paragraph to section 106(e) of the Housing and Urban Development Act of 1968 allowing the Secretary to conduct periodic reviews and requiring performance reviews of every organization that receives assistance under the section, covering compliance with all program requirements.
What the document actually says
“``(A) may conduct periodic reviews; and ``(B) shall conduct performance reviews of all organizations receiving assistance under this section that-- ``(i) consist of a review of the organization's compliance with all program requirements;”
That sentence, in plain words
The housing agency may check on groups from time to time. It must check how well every group that gets money does its job. The check looks at whether the group follows the rules.
What this is about
A review is a look at how a group works. Before this law the agency did not have to do one. Now it must.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “can”Who acts: Secretary of Housing and Urban DevelopmentHow: statuteSec. 101 in the PDF
What the document says
“the Secretary may consider the performance of the counselor compared to the default rate of all counseled borrowers of a covered mortgage loan in comparable markets and such other factors as the Secretary determines appropriate to further the purposes of this section.”
The new paragraph 106(e)(7) lets the Secretary judge a counselor who does prepurchase counseling by comparing that counselor's record to the default rate of all counseled borrowers of a covered mortgage loan in comparable markets, along with any other factors the Secretary thinks fit. The same paragraph defines a covered mortgage loan as a loan on a home for one to four families that is insured by the Federal Housing Administration or guaranteed under section 184 or 184A of the Housing and Community Development Act of 1992.
What the document actually says
“the Secretary may consider the performance of the counselor compared to the default rate of all counseled borrowers of a covered mortgage loan in comparable markets and such other factors as the Secretary determines appropriate to further the purposes of this section.”
That sentence, in plain words
The housing agency may look at how one counselor does. It can hold that up against how borrowers in like places do. It may look at other things too.
What this is about
A default is when a person stops paying a home loan. Counselors help people avoid that. This lets the agency compare one counselor to the rest.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “can”Who acts: Secretary of Housing and Urban DevelopmentHow: statuteSec. 101 in the PDF
What the document says
“``(A) require continued education coupled with successful completion of a probationary period; ``(B) require retesting if the counselor continues to demonstrate a lack of competence under paragraph (7)(B); and ``(C) suspend an individual certification if a counselor fails to demonstrate competence after not fewer than 2 retesting opportunities under subparagraph (B).'';”
The new paragraph 106(e)(8) lets the Secretary require more education and a probationary period, require retesting, or suspend a counselor's certification after at least two retests. The Secretary may act only after the comparison in paragraph (7)(B) and only where doing so will not create a significant loss of counseling capacity in the service area.
What the document actually says
“``(A) require continued education coupled with successful completion of a probationary period; ``(B) require retesting if the counselor continues to demonstrate a lack of competence under paragraph (7)(B); and ``(C) suspend an individual certification if a counselor fails to demonstrate competence after not fewer than 2 retesting opportunities under subparagraph (B).'';”
That sentence, in plain words
The agency can make a counselor study more and pass a trial time. It can make the counselor take a test again. It can stop the counselor from working after two failed tests.
What this is about
Certification is proof that a person is trained to do a job. Losing it means the person cannot counsel. The steps here go from mild to strong.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “can”Who acts: Secretary of Housing and Urban DevelopmentHow: statuteSec. 101 in the PDF
What the document says
“``(A) In general.--The Secretary may deny renewal of covered assistance to an organization or entity receiving covered assistance if the Secretary determines that the organization or entity, or the individual through which the organization or entity provides counseling, is not in compliance with program requirements--”
The section inserts a new paragraph into section 106(i) of the Housing and Urban Development Act of 1968 letting the Secretary deny renewal of covered assistance where the organization, or the individual through whom it counsels, is out of compliance with program requirements, based on the performance review and in accordance with the Secretary's regulations.
What the document actually says
“``(A) In general.--The Secretary may deny renewal of covered assistance to an organization or entity receiving covered assistance if the Secretary determines that the organization or entity, or the individual through which the organization or entity provides counseling, is not in compliance with program requirements--”
That sentence, in plain words
The housing agency can stop giving money to a group. It can do that when the group does not follow the rules. It counts if the person who does the counseling does not follow them.
What this is about
Renewal means giving money again for a new year. Denying it does not take back money already given. It ends the next round.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: Secretary of Housing and Urban DevelopmentHow: statuteSec. 101 in the PDF
What the document says
“The Secretary shall give an organization or entity receiving covered assistance not less than 60 days prior written notice of any denial of renewal under this paragraph, and the determination of renewal shall not be finalized until the end of that notice period.”
The new paragraph requires at least 60 days written notice before a denial of renewal and bars the determination from being finalized until the notice period ends. If the organization asks in writing within that period it is entitled to an informal conference with the Deputy Assistant Secretary of Housing Counseling, at which it may raise factors it believes were beyond its control.
What the document actually says
“The Secretary shall give an organization or entity receiving covered assistance not less than 60 days prior written notice of any denial of renewal under this paragraph, and the determination of renewal shall not be finalized until the end of that notice period.”
That sentence, in plain words
The housing agency must warn a group in writing. The warning must come at least 60 days ahead. The choice is not final until those days are up.
What this is about
Notice is a warning given before something happens. Here it gives the group time to answer. The group can also ask for a meeting.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: Secretary of Housing and Urban DevelopmentHow: statuteSec. 101 in the PDF
What the document says
“A borrower with respect to a covered mortgage loan who is 30 days or more delinquent on payments for the covered mortgage loan shall be given an opportunity to participate in available housing counseling.”
The section adds a new subsection (j) to section 106 of the Housing and Urban Development Act of 1968 requiring that a borrower at least 30 days behind on a covered mortgage loan be offered available housing counseling. A covered mortgage loan is defined there as a loan on a home for one to four families that is insured by the Federal Housing Administration, guaranteed under section 184 or 184A of the Housing and Community Development Act of 1992, or made, guaranteed, or insured by the Department of Veterans Affairs or the Department of Agriculture.
What the document actually says
“A borrower with respect to a covered mortgage loan who is 30 days or more delinquent on payments for the covered mortgage loan shall be given an opportunity to participate in available housing counseling.”
That sentence, in plain words
Some people fall behind on a home loan. If they are 30 days late, they must be offered help. The help is housing counseling.
What this is about
Foreclosure is when a lender takes a home for missed payments. Counseling can help a person avoid it. This makes the offer a rule, not a choice.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: Secretary of Housing and Urban DevelopmentHow: statuteSec. 101 in the PDF
What the document says
“the fair market rate cost of counseling for delinquent borrowers described in paragraph (2) with respect to a covered mortgage loan described in paragraph (1)(A) shall be paid for by the Mutual Mortgage Insurance Fund, as authorized under section 203(r)(4) of the National Housing Act (12 U.S.C. 1709(r)(4)).”
The new subsection (j)(3) puts the fair market cost of counseling delinquent borrowers on loans insured by the Federal Housing Administration on the Mutual Mortgage Insurance Fund, if the requirements of sections 202(a)(3) and 205(f) of the National Housing Act are met.
What the document actually says
“the fair market rate cost of counseling for delinquent borrowers described in paragraph (2) with respect to a covered mortgage loan described in paragraph (1)(A) shall be paid for by the Mutual Mortgage Insurance Fund, as authorized under section 203(r)(4) of the National Housing Act (12 U.S.C. 1709(r)(4)).”
That sentence, in plain words
Counseling costs money. For some loans that cost is paid by a fund. The fund is the one that insures those loans.
What this is about
A fund is a pot of money set aside for one job. This one backs home loans insured by the government. The rule says the counseling bill comes out of it.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Each distinct thing the section requires or allows: the change to how counseling money is spread, the new reviews of counseling groups, the comparison of counselor performance, the steps that follow a finding that a counselor lacks competence, the power to deny renewal of assistance and the notice that goes with it, and the new offer of foreclosure counseling.
Purely mechanical amendments. Redesignating a paragraph so that new text can be inserted is recorded only where it changes what somebody must do.
The section works by amending section 106 of the Housing and Urban Development Act of 1968, which is not indexed here, so a reader following a citation into that law will find the older wording until this one is applied.
