When Is The Homeownership Counseling Disclosure Required?

A creditor is required to notify any qualified homeowner who fails to pay any amount due by the due date specified in the terms of the house loan of the availability of homeownership counseling.

Is a lender required to provide a list of homeownership counseling organizations?

If an application for a reverse mortgage transaction is subject to 12 CFR 1026.33 (a), the lender is not obligated to furnish the applicant with the list of homeownership counseling groups required by this section. (2) Timeshare arrangements.

What does the CFPB’s new rule on homeownership counseling mean?

The Consumer Financial Protection Bureau (CFPB) has published a final rule to help lenders in complying with the RESPA and TILA homeownership counseling obligations. According to the Real Estate Settlement Procedures Act, a lender is required to give applicants for a federally connected mortgage loan with a list of licensed homeownership counselors.

Do credit unions need to provide notice of homeownership counseling availability?

The 2016 mortgage servicing rules have been in effect for nearly two years, and one requirement that many credit union compliance officers have been attempting to reverse engineer is the requirement to provide the Notice of Homeownership Counseling Availability and the Servicemembers Civil Relief Act Disclosure.