Washington, DC – U.S. Representative Judy Biggert (R-IL-13th) last night secured House passage of her legislation aimed at preventing foreclosure through mortgage-related counseling services.  The bill, H.R. 3019, the Expand and Preserve Home Ownership Through Counseling Act, expands the availability of housing counseling services, offers grants to state and local agencies, launches a national outreach campaign, and establishes a counseling office within the Department of Housing and Urban Development (HUD). 

           “So many troubled mortgage holders genuinely want to pay for their home and had solid payment histories before their rates reset,” said Biggert, the Ranking Member of the House Financial Services Financial Institutions and Consumer Credit Subcommittee.  “Given the right refinancing options, these are people that can and would be able to make their monthly payments.  But they need someone to help them evaluate their options, guide them through the process, and facilitate discussions with their bank.”

           The new Office of Housing Counseling within HUD will help fund local counseling operations while spearheading a national effort to raise awareness of the availability and value of mortgage-related financial counseling.  In total, the bill authorizes $180 million over four years for the office’s operation, education programs, and for grants to eligible HUD-certified counseling organizations.  It also will be tasked with conducting a study of the root causes of defaults and foreclosures, with a preliminary report due in 12 months and a final report due in 24 months.  The report will recommend policy reforms and best practices, as well as identify populations most in need of counseling.

           “Education is the first line of defense against predatory lending, and it helps borrowers avoid exotic or misleading loan products that they aren’t prepared to repay,” said Biggert, who Co-Chairs the House Financial and Economic Literacy Caucus along with the bill’s lead Democrat cosponsor, Rep. Rubén Hinojosa (D-TX-15).  “We need to put the breaks on the wave of foreclosures this nation is facing, and housing counseling can help to do just that.”

           H.R. 3019 passed the House by voice vote.  It now awaits consideration in the Senate.

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