Banking Regulations Compliance - Homeownership Counseling Tool List

With January quickly approaching you are hopefully already aware that you will be required to provide a Homeownership Counseling list on RESPA covered applications received on or after January 10, 2014.  Under the final rule, lenders can either use a tool created by the CFPB to generate the list or use data provided by the CFPB or HUD to develop a list.

The good news is, the CFPB recently announced their Homeownership Counseling list tool is now available.  To use the tool, all you need to do is enter the borrower’s zip code and print the list.  You can access the tool at:

http://www.consumerfinance.gov/find-a-housing-counselor/

If a lender chooses to develop their own list using data from the CFPB or HUD, it should contain the same elements as a list created from the CFPB’s tool.  If you are looking to design your own list, the CFPB does provide some guidance.  If you don’t anticipate having the ability to create your list prior to the January 10^th effective date, you should direct consumers to the CFPB’s tool by providing the disclosure referenced in the bulletin accompanying the announcement.

Again, you have an option on how you want to comply; however, anytime a governing body issues their own tool, we recommend using it.

Published
2013/11/21
Diane Dean