If a client decides to finance the counseling fee through loan proceeds, how will the counseling agency receive this payment from the lender?
Date Published: September 2015
The Home Equity Conversion Mortgage (HECM) Certificate will serve as an invoice that the lender will provide to the settlement agent. The settlement agent will use the information provided on the HECM certificate (name of the agency, address, and fee amount) to pay the counseling agency. Mortgagee Letter 2008-12 states that the closing agent will assume responsibility for remitting the payment to the counseling agency that performed the service. Typically, loan proceeds are disbursed on the fourth day after loan closing.