HUD’s Office of Housing Counseling contacted NRMLA this week and asked us to remind members that lenders are not permitted to collect a fee or take a final client application before the counseling session is conducted and the certificate issued and signed by both parties.
Mortgagee Letter 2004-25 states: “Until the mortgagee receives the required HECM counseling certificate indicating the counseling has been completed, the mortgagee may not charge the borrower an application fee, an appraisal fee, or charge for any other HECM-related services.”
If you have a compliance question, NRMLA will research the topic and publish the answer in a future issue of Weekly Report. Please email your questions to Darryl Hicks, VP of Communications, at dhicks@dworbell.com.
