The U.S. Department of Housing and Urban Development published an Interim Final Rule that extended to August 1, 2021, the deadline for housing counselors to pass the certification examination and remain on the FHA counseling roster.
“As of today, only 64 percent of the 1,090 housing counseling agencies have HUD certified housing counselors,” says Jennifer Cosentini, housing director at Cambridge Credit Counseling in Agawam, MA. “It was imperative for HUD to take action and postpone the final compliance date. Had they not, we would be seeing many agencies go out of business and losing counselors at an extremely critical time in the housing industry.”
The Dodd Frank Act of 2010 requires all housing counselors, including reverse mortgage counselors, to pass a certification exam in order to be on the FHA roster. HECM counselors must also pass a reverse mortgage-specific exam every three years.
HUD noted in its interim rule that as of July 6, 2020, 60 percent of the testing centers remained closed because of COVID-19 restrictions. While counselors can take the exam online, this may require purchasing additional equipment, which may not be possible for many housing counselors.
“At the same time, the housing counseling industry is experiencing an increase in the need for rental, foreclosure, and Home Equity Conversion Mortgage (HECM) counseling services during the crisis by families experiencing financial hardship due to the impacts of COVID–19,” HUD adds. “This increased demand for client services is causing counselors to shift away from preparing for and completing the exam.”
The Interim Final Rule will be open for comment until September 4, 2020.
HUD Delays Housing Counselor Certification Deadline
