Housing Financial Literacy Act of 2026
- Bill Number
- S. 4861
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-06-23: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2026-07-08T17:24:27Z
AI-Generated Summary
Purpose This legislation aims to encourage first-time homebuyers to complete financial literacy housing counseling programs by offering reduced Federal Housing Administration (FHA) mortgage insurance premium payments on single-family mortgages.
Key provisions
- Amends section 203(c)(2)(A) of the National Housing Act (12 U.S.C. 1709(c)(2)(A)).
- Requires that the counseling program be finished before the borrower signs a mortgage application or sales agreement.
- Sets the insurance premium at 25 basis points below the standard rate established by the Secretary of Housing and Urban Development.
- Applies only to first-time homebuyers using FHA-insured mortgages.
Significant changes to existing law
- Introduces a mandatory timing requirement for program completion, which did not previously exist.
- Replaces the prior premium cap of 2.75 percent of the original insured principal with a fixed reduction of 25 basis points from the Secretary’s established rate.
- Shifts from a maximum limit to a specific discount tied to program participation.
Potential impacts
- On government agencies: Requires the Department of Housing and Urban Development to adjust premium calculations and verify program completion for eligible borrowers.
- On citizens: Lowers ongoing costs for qualifying first-time homebuyers who complete approved counseling.
- On international relations: No direct effects identified.
Main stakeholders affected
- First-time homebuyers seeking FHA financing.
- The Department of Housing and Urban Development.
- Approved financial literacy and housing counseling providers.
- Mortgage lenders and servicers handling FHA loans.
Notable legal, constitutional, or political implications
- Operates within existing FHA authority under the National Housing Act with no apparent constitutional concerns.
- Represents a targeted incentive policy rather than a broad regulatory change.
- Could influence participation rates in counseling programs without altering core FHA insurance requirements.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2026-06-23: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2026-06-23: Introduced in Senate
Bill Versions
- Housing Financial Literacy Act of 2026 — issued 2026-06-23 — PDF (2 pages)