U.S. Treasury Under Secretary for Domestic Finance Robert Steel believes access to financial literacy tools may have helped many Americans avoid foreclosure, according to testimony he gave in front of the President’s Advisory Council on Financial Literacy Subcommittee on the Underserved.
During his presentation, Steel praised innovative mortgage products for allowing more Americans to gain access to homeownership, but says despite having access, many Americans are still hurting because of complex mortgage applications and a general lack of financial education.

“Unfortunately, many Americans do not have access to mainstream financial services,” said Steel. “They lack the requisite understanding to utilize financial tools and products to manage their financial affairs properly. Additionally, as financial institutions revise their lending standards, some credit-worthy borrowers could find it more difficult to access the credit needed to finance their futures. As our markets move forward, they will need to find the right balance of improving their own lending practices, while not cutting off responsible, credit-worthy borrowers.”
Steel asked the President’s Advisory Council to consider what initiatives will help promote financial literacy in both the public and private sectors of the economy.
“A more financially literate consumer base—across all income levels and in prime and subprime markets alike—could have mitigated at least some of our current housing difficulties,” Steel said. “Financial knowledge makes people better informed consumers. And when they understand the terms of a mortgage loan, they are better able to compare costs and benefits of different products and they are better positioned to make long-term decisions that advance their financial goals.”