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House passes NAFCU-supported housing financial literacy bill
The House yesterday passed the Housing Financial Literacy Act of 2019, H.R. 2162, which would discount Federal Housing Administration (FHA) mortgage insurance premium payments for first-time homebuyers who complete a financial literacy housing counseling program. Prior to the bill's passage, NAFCU Vice President of Legislative Affairs Brad Thaler shared the association's support for the bill in a letter sent to House leadership.
"Improving financial education and providing communities with the resources to invest prudently is a hallmark of credit unions. H.R. 2162, sponsored by Representative Joyce Beatty, would incentivize first-time homebuyers to participate in financial literacy programs by offering a discount on Federal Housing Administration (FHA) mortgage-insurance premium payments," wrote Thaler.
Thaler also highlighted the positive effects that financial literacy programs can have in making housing more affordable, including:
- fewer late payments;
- lower default rates; and
- lower costs for the homeowners and lenders.
Credit unions work to meet the needs of their members, including developing educational programs to ensure that members will be able to adequately prepare for the future, and the NCUA has resources available to both credit unions and members.
NAFCU will continue to share with lawmakers credit unions' efforts to ensure Americans make well-informed financial decisions and that vulnerable populations are protected from financial exploitation.