In a memo to counseling agencies, the Department of Housing and Urban Development clarified that there is no cap or maximum amount that can be charged for HECM counseling. As stated in Mortgagee Letter 2011-09, a fee of $125.00 is neither a maximum nor a minimum allowable charge.
HUD published the memo on June 2, because it is “aware that there may be some confusion about how much a counseling agency may charge for HECM counseling services and whether there is a cap on the amount that can be charged.”
Counseling agencies, however, must be able to demonstrate how the fee charged to clients was calculated and what considerations contributed to the establishment of the fee. When HUD staff conducts a Performance Review, agencies will be required to have this information available. Agencies must also disclose their fee structure in their housing counseling work plan.