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WASHINGTON D.C. – Today, Congressman David Scott (GA-13), was joined by Congresswoman Joyce Beatty (OH-03) and Congressman Cleo Fields (LA-06), all senior members of the House Financial Services Committee, in introducing new legislation to bolster the quality, accountability, and effectiveness of housing counseling services nationwide. The Reforms to Housing Counseling & Financial Literacy Programs Act of 2025 would provide the Department of Housing and Urban Development (HUD) with enhanced authority to review the performance of housing counseling agencies and individual counselors—ensuring that families who rely on these services receive the highest standard of guidance on homeownership, foreclosure prevention, and financial stability.

Housing counseling agencies approved by HUD play a critical role in helping families navigate the road to responsible homeownership. Housing counselors are often the first line of defense for homeowners to avoid foreclosure, repair credit health, and build long-term financial stability. Unfortunately, current statutory authority limits HUD’s ability to rigorously review counselor performance, intervene when counselors underperform, and ensure consistent quality across the national housing counseling network.

“When housing counseling is low-performing, inaccurate, or poorly supervised, it does not simply fail to help—it actively increases default risk, erodes household wealth, and undermines the integrity of our federal housing programs,” said Congressman David Scott. “We are doing a disservice to the borrowers who accept higher interest rates or are steered toward higher-cost, riskier products despite qualifying for safer government-backed options. Congress has a responsibility to ensure counseling services for homebuyers remains high-quality, data-driven, and accountable. Our bill ensures that the federal government is investing in counseling programs that work—and intervening when they don’t. Stronger oversight means stronger outcomes for Georgia families, first-generation homebuyers, and communities striving to close the racial wealth gap.”

“As co-chair of the Financial Literacy and Wealth Creation Caucus, I have long advocated for housing counseling to ensure hardworking families and first-time homebuyers have the financial skills they need to understand their mortgage terms, prevent foreclosure, and maintain stable housing,” said Congresswoman Beatty. “This commonsense bill advances that effort by expanding foreclosure mitigation counseling to borrowers who are 30 days or more delinquent on mortgage payments. As families across the country face an affordability crisis, we must give them more tools—not less—to weather the storm.”

“Louisiana families deserve quality housing counseling, especially as we continue rebuilding from past disasters,” said Congressman Cleo Fields. “This bill ensures that counselors meet consistent standards while protecting access to these critical services in underserved communities. I'm pleased this legislation provides funding through the Mutual Mortgage Insurance Fund to ensure delinquent borrowers can access foreclosure mitigation counseling. For families on the brink of losing their homes, cost should never be a barrier to getting help.”

The Reforms to Housing Counseling & Financial Literacy Programs Act of 2025 amends Section 106 of the Housing and Urban Development Act of 1968 to give HUD enhanced authority to review the performance of housing counseling agencies and individual counselors. Under the proposal:

• HUD would be empowered to conduct periodic on-site reviews and evaluate whether counseling agencies and counselors are meeting program requirements.
• If a counselor’s performance falls short, HUD could require additional education, establish a probationary period to demonstrate improvement, and mandate retesting when persistent deficiencies are found.
• Counselors who remain out of compliance after multiple opportunities to improve could face enhanced oversight or permanent loss of certification.
• Borrowers with certain federally insured or guaranteed mortgages who become delinquent would be provided an opportunity, through the Mutual Mortgage Insurance Fund, to access HUD-approved counseling.

If adopted, the proposal would significantly strengthen HUD’s capacity to identify underperforming programs early, direct resources where they are most needed, and improve outcomes in communities disproportionately harmed by predatory lending, high foreclosure rates, and limited access to trustworthy financial guidance.

Full text of the bill can be accessed HERE.

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