April 15, 2015
In our last post, we discussed the HUD press release announcing funding for housing counseling services across the country. Earlier this month, new FHA loan rules took effect which affect a lender’s responsibility to inform borrowers of housing counseling services. The services affected by the new FHA loan rules are intended for those who are at risk of foreclosure on FHA mortgages. According to FHA Mortgagee Letter 2015-04, lenders are required to:
“…provide delinquent borrowers with a notice describing the availability of housing counseling offered by HUD-approved housing counseling agencies and by the mortgagee. Mortgagees are currently required to prepare such a notice that provides the information required by FHA.”
The lender is required to Mortgagees give affected borrowers all the information included in an FHA/HUD publication titled, “Notification to Homeowners of Availability of Housing Counseling Services” beginning on the 32nd day (and not later than the 45th day) from the borrower’s mortgage date payment was due. This rule applies, according to the FHA official site, for each “delinquency episode”.
The lender is required to insure that all notifications sent from the lender to the borrower contain details that remind delinquent borrowers, “of the availability of housing counseling services provided by HUD-approved housing counseling agencies”. These reminders must be “provided in accessible formats or languages when such borrower communications have been requested by persons with disabilities and persons with limited English proficiency”.
The FHA and HUD require the lender to give the borrower “instructions for locating a HUD-approved housing counseling agency in the borrower’s area and includes the HUD toll-free telephone number (800) 569-4287, through which borrowers can obtain a list of housing counseling agencies”.
There are also provisions for those with speech or hearing impairment–these borrowers can call HUD via TTY by calling the Federal Information Relay Service at (800) 877-8339. Speak to your loan officer if you need assistance with housing counseling or call the FHA directly at 1-800 CALL FHA.
Do you have questions about FHA home loans? Ask us in the comments section. All comments are held for review.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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