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Housing Counseling FAQ

Do housing counseling agencies need to have a Memorandum of Understanding (MOU) agreement with lender charitable agencies when those organizations provide pay for housing counseling?

Date Published: July 2014

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Yes. HUD requires that lender charitable agencies enter into an MOU, signed by both parties, to formalize the relationship and outline the expectations of each party.

The MOU must also ensure compliance with the Real Estate Settlement Procedures Act (RESPA) requirements by requiring discussion of comparable loan products from three different lenders and ensuring any fee income is based on services rendered.

Housing counseling agencies must also include in their disclosure forms their relationship with any lenders (including lender charitable agencies) and other partners.

Tags: Housing Counseling Program Third Party Payment of Counseling Services