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Housing Counseling FAQ
Q

Can lenders steer prospective HECM borrowers to agencies that do not charge a fee?

Date Published: September 2015

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A

No. Lenders cannot steer a prospective HECM borrower to any particular agency but are required in accordance with HUD Handbook 7610.1, Chapter 4, Paragraph 4-11, and Mortgagee Letter 2005-44 to provide the borrower with a list of the 8 national intermediaries and 5 local HECM counseling agencies, one of which has to be within reasonable driving distance from the clients location.


Tags: Housing Counseling Program HECM Counseling Fees

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FAQ ID:

2554