Can a housing counseling agency that provides counseling services to prospective HECM borrowers also originate HECM loans?
Date Published: September 2015
No. Section 255 (f) of the National Housing Act requires that the counseling associated with a Home Equity Conversion Mortgage (HECM) loan be provided by a party other than the lender responsible for originating that loan. A housing counseling agency may not both originate HECM loans and offer HECM counseling services.