1. Short title
This Act may be cited as the “Housing Financial Literacy Act of 2020”.
Housing Financial Literacy Act of 2020
A BILL
To require the Secretary of Housing and Urban Development to discount FHA single-family mortgage insurance premium payments for first-time homebuyers who complete a financial literacy housing counseling program.
2. Discount on mortgage insurance premium payments for first-time homebuyers who complete financial literacy housing counseling programs
The second sentence of section 203(c)(2)(A) of the National Housing Act (12 U.S.C. 1709(c)(2)(A)) is amended by striking “not exceed 2.75 percent of the amount of the original insured principal obligation of the mortgage.” and inserting “be, in the case of a mortgage insured during the 4-year period beginning on the date that is 1 year after the date of enactment of the Housing Financial Literacy Act of 2020, 25 basis points lower than the premium payment amount established by the Secretary under the first sentence of this subparagraph, and, in the case of a mortgage insured after that 4-year period, set by the Secretary at a number of basis points lower than that premium payment amount that corresponds to the reduced risk of loss, if any, due to the counseling.”.