,i  #aai? ,,congress  #a/ ,session  ,h4 
,r4 #fgbf  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,decemb] #ae1         
#bjbe,mr4 ,david ,scott ( ,georgia 7=   
himself1 ,mrs4 ,beatty1 & ,mr4 ,fields7 
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,f9ancial ,s]vices  ,a 
,,bill  ,to am5d ! ,h\s+ & ,urban       
,developm5t ,act ( #aifh to provide     
re=ms to h\s+ c\nsel+ & f9ancial lit]acy
 programs4  #a4 ,re=ms to h\s+ c\nsel+ &
 f9ancial lit]acy programs  7a7 ,9 g5]al
 ,section #ajf ( ! ,h\s+ & ,urban       
,developm5t ,act ( #aifh 7#ab ,u4,s4,c4 
#agjax7 is am5d$-- 7#a7 9 subsection    
7a77#d77;,c71 by /rik+ adequate         
di/ribution & all t foll[s ?r\gh        
=eclosure rates & ins]t+ t ! recipi5ts  
are geographically div]se & include     
organizations t s]ve urban or rural     
areas2  7#b7 9 subsection 7e71 by add+  
at ! end ! foll[+3  7#f7 ,p]=mance      
review ,! ,secret>y--  7,a7 may conduct 
p]iodic on-site reviews2 &  7,b7 %all   
conduct p]=mance reviews ( all          

p>ticipat+ ag5cies t--  7i7 consi/ ( a  
review ( ! p>ticipat+ ag5cy's compliance
 ) all program requirem5ts2 &  7ii7 may 
take into acc\nt ! ag5cy's aggregate    
c\nselor p]=mance "u p>agraph 7#g77;,b74
  7#g7 ,consid]ations  7,a7 ,cov]$      
mortgage loan def9$ ,9 ?is p>agraph1 !  
t]m cov]$ mortgage loan means any loan  
:i* is secur$ by a fir/ or subord9ate   
li5 on resid5tial real prop]ty 7includ+ 
individual units ( condom9iums &        
coop]atives7 design$ pr9cipally = !     
occupancy ( betwe5 #a & #d families t   
is-- 7i7 insur$ by ! ,f$]al ,h\s+       
,adm9i/ration "u title ,,ii ( !         
,national ,h\s+ ,act 7#ab ,u4,s4,c4     
#agjg et seq472 or  7ii7 gu>ante$ "u    
section #ahd or #ahd;,a ( ! ,h\s+ &     
,community ,developm5t ,act ( #aiib 7#ab
 ,u4,s4,c4 #agaez-#ac;a1 #agaez-#ac;b74 
7,b7 ,comp>ison ,= ea* c\nselor employ$ 
by an organization receiv+ assi/ance "u 
?is section = pre-pur*ase h\s+ c\nsel+1 
! ,secret>y may consid] ! p]=mance ( !  
c\nselor comp>$ to ! default rate ( all 

c\nsel$ borr[]s ( a cov]$ mortgage loan 
9 comp>able m>kets & su* o!r factors z !
 ,secret>y det]m9es appropriate to fur!r
 ! purposes ( ?is section4  7#h7        
,c]tification ,if1 bas$ on ! comp>ison  
requir$ "u p>agraph 7#g77;,b71 !        
,secret>y det]m9es t a c\nselor lacks   
compet5ce to provide c\nsel+ 9 ! areas  
describ$ 9 subsection 7e77#b7 & su*     
action w n create a significant loss (  
capacity = h\s+ c\nsel+ s]vices 9 !     
s]vice area1 ! ,secret>y may-- 7,a7     
require cont9u$ education c\pl$ )       
successful completion ( a probation>y   
p]iod2  7,b7 require rete/+ if !        
c\nselor cont9ues to demon/rate a lack (
 compet5ce "u p>agraph 7#g77;,b72 &     
7,c7 p]man5tly susp5d an individual     
c]tification if a c\nselor fails to     
demon/rate compet5ce aft] n few] ?an #b 
rete/+ opportunities "u subp>agraph     
7,b74  2  7#c7 9 subsection 7i7-- 7,a7  
by r$esignat+ p>agraph 7#c7 z p>agraph  
7#d72 &  7,b7 by ins]t+ aft] p>agraph   
7#b7 ! foll[+3  7#c7 ,t]m9ation (       

assi/ance  7,a7 ,9 g5]al ,! ,secret>y   
may d5y r5ewal ( cov]$ assi/ance to an  
organization or entity receiv+ cov]$    
assi/ance if ! ,secret>y det]m9es t !   
organization or entity1 or ! individual 
?r\gh :i* ! organization or entity      
provides c\nsel+1 is n 9 compliance )   
program requirem5ts--  7i7 bas$ on !    
p]=mance review describ$ 9 subsection   
7e77#f72 &  7ii7 9 accordance )         
regulations issu$ by ! ,secret>y4  7,b7 
,notice ,! ,secret>y %all give an       
organization or entity receiv+ cov]$    
assi/ance n less ?an #fj days prior     
writt5 notice ( any d5ial ( r5ewal "u   
?is p>agraph1 & ! det]m9ation ( r5ewal  
%all n be f9aliz$ until ! end ( t notice
 p]iod4  7,c7 ,in=mal conf]5ce ,if      
reque/$ 9 writ+ by ! organization or    
entity )9 ! notice p]iod describ$ 9     
subp>agraph 7,b71 ! organization or     
entity %all be entitl$ to an in=mal     
conf]5ce ) ! ,deputy ,assi/ant ,secret>y
 ( ,h\s+ ,c\nsel+ on behalf ( !         
,secret>y at :i* ! organization or      

entity may pres5t = consid]ation        
specific factors t ! organization or    
entity believes 7 beyond ! control ( !  
organization or entity & t caus$ !      
failure to comply ) program requirem5ts1
 su* z a lack ( l5d] or s]vic]          
coord9ation or communication ) h\s+     
c\nsel+ ag5cies & individual c\nselors4 
2 &  7#d7 by add+ at ! end ! foll[+3    
7j7 ,(f]+ =eclosure mitigation c\nsel+  
7#a7 ,cov]$ mortgage loan def9$ ,9 ?is  
subsection1 ! t]m cov]$ mortgage loan   
means any loan :i* is secur$ by a fir/  
or subord9ate li5 on resid5tial real    
prop]ty 7includ+ individual units (     
condom9iums & h\s+ coop]atives7 or /ock 
or memb]%ip 9 a coop]ative own]%ip h\s+ 
corporation design$ pr9cipally = !      
occupancy ( betwe5 #a & #d families t   
is--  7,a7 insur$ by ! ,f$]al ,h\s+     
,adm9i/ration "u title ,,ii ( !         
,national ,h\s+ ,act 7#ab ,u4,s4,c4     
#agjg et seq472  7,b7 gu>ante$ "u       
section #ahd or #ahd;,a ( ! ,h\s+ &     
,community ,developm5t ,act ( #aiib 7#ab

 ,u4,s4,c4 #agaez-#ac;a1 #agaez-#ac;b72 
7,c7 made1 gu>ante$1 or insur$ by !     
,dep>tm5t ( ,vet]ans ,affairs2 or  7,d7 
made1 gu>ante$1 or insur$ by ! ,dep>tm5t
 ( ,agriculture4  7#b7 ,opportunity =   
borr[]s ,a borr[] ) respect to a cov]$  
mortgage loan :o is #cj days or m       
del9qu5t on paym5ts = ! cov]$ mortgage  
loan %all be giv5 an opportunity to     
p>ticipate 9 available h\s+ c\nsel+4    
7#c7 ,co/ ,if ! requirem5ts ( sections  
#bjb7;a77#c7 & #bje7;f7 ( ! ,national   
,h\s+ ,act 7#ab ,u4,s4,c4 #agjh7;a77#c71
 #agaa7;f77 are met1 ! fair m>ket rate  
co/ ( c\nsel+ = del9qu5t borr[]s        
describ$ 9 p>agraph 7#b7 ) respect to a 
cov]$ mortgage loan describ$ 9 p>agraph 
7#a77;,a7 %all be paid = by ! ,mutual   
,mortgage ,insurance ,fund1 z au?oriz$  
"u section #bjc7r77#d7 ( ! ,national    
,h\s+ ,act 7#ab ,u4,s4,c4 #agji7r77#d774
  4