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Housing Counseling FAQ
Q

Can a housing counseling agency that provides counseling services to prospective HECM borrowers also originate HECM loans?

Date Published: September 2015

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A

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.


Tags: Housing Counseling Program HECM Counseling Requirements

FAQ ID:

2572