FINANCIAL EDUCATION AND COUNSELING.

SEC. 1132. FINANCIAL EDUCATION AND COUNSELING.(a) Goals.—Financial education and counseling under this section shall have the goal of—(1) increasing the financial knowledge and decision making capabilities of prospective homebuyers;(2) assisting prospective homebuyers to develop monthly budgets, build personal savings, finance or plan for major purchases, reduce their debt, improve their financial stability, and set and reach their financial goals;(3) helping prospective homebuyers to improve their credit scores by understanding the relationship between their credit histories and their credit scores; and(4) educating prospective homebuyers about the options available to build savings for short- and long-term goals.(b) Grants.—(1) In general.—The Secretary of the Treasury (in this section referred to as the “Secretary”) shall make grants to eligible organizations to enable such organizations to provide a range of financial education and counseling services to prospective homebuyers.(2) Selection.—The Secretary shall select eligible organizations to receive assistance under this section based on their experience and ability to provide financial education and counseling services that result in documented positive behavioral changes.(c) Eligible Organizations.—(1) In general.—For purposes of this section, the term “eligible organization” means an organization that is—(A) certified in accordance with section 106(e)(1) of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x(e)); or(B) certified by the Office of Financial Education of the Department of the Treasury for purposes of this section, in accordance with paragraph (2).(2) OFE certification.—To be certified by the Office of Financial Education for purposes of this section, an eligible organization shall be—122 STAT. 2728(A) a housing counseling agency certified by the Secretary of Housing and Urban Development under section 106(e) of the Housing and Urban Development Act of 1968;(B) a State, local, or tribal government agency;(C) a community development financial institution (as defined in section 103(5) of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702(5)) or a credit union; or(D) any collaborative effort of entities described in any of subparagraphs (A) through (C).(d) Authority for Pilot Projects.—(1) In general.—The Secretary of the Treasury shall authorize not more than 5 pilot project grants to eligible organizations under subsection (c) in order to—(A) carry out the services under this section; and(B) provide such other services that will improve the financial stability and economic condition of low- and moderate-income and low-wealth individuals.(2) Goal.—The goal of the pilot project grants under this subsection is to—(A) identify successful methods resulting in positive behavioral change for financial empowerment; and(B) establish program models for organizations to carry out effective counseling services.(e) Authorization of Appropriations.—There are authorized to be appropriated to the Secretary such sums as are necessary to carry out this section and for the provision of additional financial educational services.(f) Study and Report on Effectiveness and Impact.—(1) In general.—The Comptroller General of the United States shall conduct a study on the effectiveness and impact of the grant program established under this section. Not later than 3 years after the date of enactment of this Act, the Comptroller General shall submit a report on the results of such study to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives.(2) Content of study.—The study required under paragraph (1) shall include an evaluation of the following:(A) The effectiveness of the grant program established under this section in improving the financial situation of homeowners and prospective homebuyers served by the grant program.(B) The extent to which financial education and counseling services have resulted in positive behavioral changes.(C) The effectiveness and quality of the eligible organizations providing financial education and counseling services under the grant program.(g) Regulations.—The Secretary is authorized to promulgate such regulations as may be necessary to implement and administer the grant program authorized by this section.