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Expanding HECM Default Counseling

December 04, 2018 Print ShareThis

Why is expanding Home Equity Conversion Mortgage (HECM) default counseling and increasing support for existing HECM default counselors and agencies important?

HUD recognizes the need to expand the number of agencies and counselors who can provide default counseling for HECM borrowers due to the increase in HECM’s reaching “due and payable” and/ or foreclosure status. 

What is HUD doing to expand the reach and effectiveness of HECM default counseling?

  1. HUD permits agencies to provide nationwide HECM default counseling as we do with HECM origination, if it is part of the agency’s current HUD approved work-plan for HECM default and if the agency chooses to do so.
  2. HECM default counseling training opportunities for all agencies currently providing, planning to provide, or building the capacity to provide the counseling will be listed on the counseling exchange page, both from HUD partners and HUD.

How can agencies take advantage of this opportunity?

HUD recommends that counselors who would like to learn more about providing HECM default counseling take the trainings available on the HECM Default Counseling page on the HUD Exchange. If your agency provides default counseling currently or wishes to provide default counseling in the future, follow the instructions below.

  • Agencies that are currently providing HECM default counseling should review their work plans and reports to HUD to confirm they reflect what agencies are doing and what they may intend to do to expand their operations, so they can receive recognition and resources. As needed, they should modify their work plans to identify:
    • The number of counselors providing HECM Default services
    • Where the agency currently provides this service
    • Other geographic areas if they wish to expand their scope in the future

  • Agencies that are not currently providing HECM default counseling can enhance or demonstrate capacity and/or experience in default counseling and knowledge of the HECM program to provide this service in the future. Agencies should provide:
    • A statement of interest in providing the service
    • Amended agency work plan that includes HECM default counseling
    • A summary of their current level of default counseling experience and HECM program knowledge
    • Resumes of counseling staff providing the counseling
    • A summary of staff training around default and HECM counseling
    • Geographic areas in which they currently provide this service and areas they wish to include in the future

For more information about HECM Counseling, view the resources on the HUD Exchange HECM Counseling page. Please direct any questions to your HUD point of contact or email housing.counseling@hud.gov.

Tags: Housing Counseling Program