Date Published: July 2008
An individual housing counselor can perform multiple affordable housing activities for an agency, including counseling and originating loans. However, these tasks must be completed as part of that counselor’s job duties and cannot command a special commission or fee above his or her salary. The housing counselor must provide the client with a written disclosure which states that the client is under no obligation to use the loan product that the housing counselor is originating. The disclosure must also state that receiving housing counseling services is not contingent on using a particular loan product. And, the counselor must also provide information on at least three other relevant alternative loan products that are available.
In the case of Home Equity Conversion Mortgage (HECM) loans, housing counseling agencies are prohibited from both originating HECM loans and providing HECM counseling to clients.