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CFPB Launches Tool to Locate Housing Counselors

by devteam November 9th, 2013 | Share

The Consumer Financial Protection Agency remindedrnlenders today of the requirement, starting January 10, to provide consumersrnwith a list of homeownership counseling organizations.  Consumers should be given such a list at therntime they apply for a mortgage so they know where to get help or guidance torndecide which loan is the best for them.</p

CFPB said it recognizes that developingrna method to generate these lists appropriately may take lenders some time sornthey might not be able to provide the lists by the rules implementation date,rnso today it both launched a tool to help consumers find local housingrncounseling agencies and published guidance for lenders on how to prepare listsrnof these organizations for their customers.   The Bureau suggests that lenders can also usernthe on-line consumer tool to build their own lists of agencies if they desire</p

Housing counselors can providernadvice on buying a home, renting, defaults, foreclosures, and credit issues, oftenrnat little or no cost to consumers. The tool:</p<ul type="disc"

  • Shows consumers their closest options: The tool uses a search box and mapping function torn show the consumer the ten closest counseling agencies to their zip code.</li</ul<ul type="disc"
  • Provides contact information for HUD-approvedrn counselors: The tool only draws onrn information from the Department of Housing and Urban Development’s (HUD)rn official list of housing counselors.</li</ul<ul type="disc"
  • Displays services offered by counseling agencies: When counselors are listed, the tool shows thern consumer which services are available there, such as rental housingrn counseling, pre-purchase counseling, or default resolution counseling.</li</ul<ul type="disc"
  • Lists the languages offered: For those consumers who would prefer to receivern housing counseling in a language other than English, the tool lists thern languages that each housing counseling agency offers.</li</ul

    If a lender prefers to build its ownrnlist it can look to today’s interpretive rule for instructions and can also considerrndirecting borrowers to the CFPB’s new tool in the interim.  If lenders take these steps in good faithrnwhile building their systems or are working with vendors to build systems, thernCFPB would not raise supervisory or enforcement concerns. </p

    “Consumers need and deserve the bestrnguidance when making the decision to purchase a home,” said CFPB DirectorrnRichard Cordray. “Buying a home may easily be the largest investment a consumerrnmakes, and we want to make it easier for them to find a housing counselor thatrnis a good fit for them.”</p

    Consumers and lenders can access thernnew tool at http://www.consumerfinance.gov/find-a-housing-counselor/.rn

    All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of MortgageNewsDaily.com is prohibited.

    • About the Author

    devteam

    Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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