Free foreclosure counseling for struggling homeowners, with strings attached
H.R. 6726 — To amend the Housing and Urban Development Act of 1968 to provide reforms to housing counseling and financial literacy programs. · Filed by David Scott (D-GA) · 2 cosponsors · Introduced Dec 15, 2025 · Referred to committee
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What it does
This bill reforms federal housing counseling and financial literacy programs by requiring the Department of Housing and Urban Development to conduct performance reviews of counseling agencies, establish geographic diversity standards, and allow removal of underperforming counselors. It also mandates that borrowers 30+ days delinquent on federally-backed mortgages be offered free housing counseling, with costs paid from the FHA insurance fund.
Why we flagged it
The bill's core mechanism is dual: it establishes performance standards and removal procedures for housing counseling agencies while mandating free foreclosure counseling for delinquent borrowers. Both are consumer-protection and accountability measures, not deregulation or subsidy carve-outs.
What the text implies
- Performance metrics tied to default rates of counseled borrowers may incentivize agencies to counsel only lower-risk applicants, potentially excluding the most vulnerable borrowers who need counseling most.
- Shifting foreclosure counseling costs to the FHA Mutual Mortgage Insurance Fund may increase insurance premiums for future borrowers, creating an indirect cost to homebuyers not yet delinquent.
- The 60-day notice period and informal conference right for agencies facing denial of renewal may slow enforcement and allow continued operation of underperforming agencies during appeals.
- Geographic diversity requirement lacks enforcement mechanism or penalty specification, leaving compliance discretionary.
Section numbers refer to the bill text the analysis read — linked under Primary records below.
Who it affects
Homeowners facing delinquency gain access to free counseling to avoid foreclosure, and geographic diversity requirements ensure rural and underserved areas receive services. Performance accountability for counseling agencies improves service quality, though the cost shift to the FHA insurance fund may indirectly affect future borrowers through premium adjustments.
Who stands to gain
- housing counseling agencies (through continued federal funding and performance-based renewal)
- delinquent borrowers (free counseling services)
Named in the bill
Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), Mutual Mortgage Insurance Fund, Department of Veterans Affairs, Department of Agriculture, housing counseling agencies, Deputy Assistant Secretary of Housing Counseling
Where it stands
2 cosponsors: 2 Democrats.
- Dec 15, 2025 — Introduced · Congress.gov: “Introduced in House”
- Dec 15, 2025 — Referred to House Committee on Financial Services · Congress.gov: “Referred to the House Committee on Financial Services”
Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.
How this was measured
Analysis — Quorum's AI read the bill text published by Congress.gov (5,432 characters) on Jun 3, 2026. Section numbers in the findings refer to that text, linked below; transparency and hidden-provision scores are compared against the median of 16,222 analysed bills.
Status and sponsors — Congress.gov's bill record — actions, committee referrals and cosponsors — loaded nightly. The timeline shows status changes, not every procedural action.
As of — page rendered 2026-10-20.
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