The HOEPA Homeownership Counseling Disclosure requirement, which informs borrowers they have the option to receive homeownership counseling from a HUD approved counseling agency, became effective for loans with an application dated on or after January 10, 2014.
The Consumer Financial Protection Bureau (CFPB) initially allowed for a temporary disclosure (the Homeownership Counseling Disclosure currently on the HomeBridge website) that directed borrowers to either the CFPB or HUD counseling agency website to locate a counseling agency in lieu of providing the borrowers a written list of agencies in their immediate area. HomeBridge has had a
The CFPB has now mandated a written list be provided to borrowers; the temporary disclosure is no longer acceptable.
Loans submitted to HomeBridge Underwriting on or after Monday, August 18, 2014 will require the use of the new Homeownership Counseling Form. The new version of the disclosure includes customized information of counseling agencies located in the borrower’s immediate area.
HomeBridge will provide the new Counseling Form in the initial disclosure package sent to the borrower. Brokers are responsible to ensure the form is signed by the borrower(s) and returned to HomeBridge.
A sample of the new Homeownership Counseling Disclosure is attached and will be posted on the HomeBridge website. The existing Homeownership Counseling Disclosure will remain on the website for the near future and may continue to be used for loans submitted to HomeBridge Underwriting prior to August 18, 2014.
The rule and changes may be viewed at Consumer Financial Protection Bureau
If you have any questions, please contact your Account Executive.
