CFPB Issues Interpretive Rule Regarding Homeownership Counseling Organizations Lists

CFPB TILA RESPA

On November 8, the CFPB issued an interpretive rule setting forth instructions for lenders on how to comply with the homeownership counseling list requirements set forth in the High-Cost Mortgage and Homeownership Counseling Amendments to TILA and the Homeownership Counseling Amendments to RESPA, which are scheduled to take effect on January 10, 2014. In addition, the CFPB released its homeownership counseling list generation tool to help lenders produce a list that complies with RESPA requirements.

The interpretive rule clarifies the requirement under RESPA that lenders must provide a list of homeownership counseling organizations to consumers obtained from the CFPB or HUD. Specifically, the rule requires lenders to:

• Provide a list of ten HUD-approved housing counseling agencies to consumers;

• Generate the list by using the consumer’s current five-digit zip code to ensure that the homeownership counseling organization will be in the consumer’s location;

• Include the following information for each housing counseling agency listed: (i) agency name; (ii) phone number; (iii) street address, city, state, zip code; (iv) website URL; (v) email address; (vi) counseling services provided; and (vii) languages spoken; and

• Include the following language:

The counseling agencies on this list are approved by the U.S. Department of Housing and Urban Development (HUD), and they can offer independent advice about whether a particular set of mortgage loan terms is a good fit based on your objectives and circumstances, often at little or no cost to you. This list shows you several approved agencies in your area. You can find other approved counseling agencies at the Consumer Financial Protection Bureau’s (CFPB) website: consumerfinance.gov/mortgagehelp or by calling 1-855-411-CFPB (2372). You can also access a list of nationwide HUD-approved counseling intermediaries at http://portal.hud.gov/hudportal/HUD?src=/ohc_nint.