Beatty Introduces Bipartisan Legislation to Increase Financial Literacy

Press Release

Today, U.S. Congresswoman Joyce Beatty (OH-03) introduced bipartisan legislation, the Housing Financial Literacy Act of 2015, H.R. 1908, a bill she sponsored aimed at increasing first-time homebuyers financial knowledge.

"I am thrilled to continue my commitment to financial literacy, especially as we recognize Financial Literacy Month, by introducing the Housing Financial Literacy Act of 2015," said Rep. Beatty. "For many Americans, owning a home is the cornerstone of achieving the American Dream. Homeownership not only benefits the homeowner's family and surrounding community, it is also linked to improved health and school performance for children."

The bipartisan legislation would give first-time homebuyers who complete a Department of Housing and Urban Development or HUD-certified housing counseling course a discount on their Federal Housing Administration (FHA) mortgage insurance premiums of 25 basis points (or 0.25 percent).

"My legislation would motivate first-time homebuyers to seek vital pre-purchase housing counseling to alleviate the confusion and fears associated with purchasing real estate. These housing counseling programs help prospective homebuyers understand their financing and down-payment options, evaluate their readiness for a home purchase and navigate what sometimes may be a confusing and difficult process," said Rep. Beatty.

Original co-sponsors of this legislation include Congressman Hinojosa (TX-15) and Congressman Stivers (OH-15), the respective Democratic and Republican Co-Chairs of the Financial Literacy Caucus.

During Financial Literacy Month, observed in April of each year, Americans are encouraged to improve their financial management skills and acumen. The Housing Financial Literacy Act of 2015 would support this goal by encouraging individuals to take advantage of counseling resources available in their community to improve their financial literacy skills, while providing assistance that would ease the process of first-time homeownership. Studies have shown that homebuyers who receive pre-purchase housing counseling are nearly one-third less likely to fall behind on their mortgage.

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