HOEPA Counseling

Under the Home Ownership and Equity Protections Act (HOEPA), lenders must get certification that the borrower has been given counseling about the mortgage being offered. The loan cannot proceed until a housing counselor provides this certification. This counseling is important because some high-cost mortgages and housing loans can strip away equity that homeowners work for years to build. Getting counseling ensures that the homeowner is making an informed decision before borrowing against their home’s equity. That’s why the counseling is required by law. One thing lenders are required to do is provide a list of legitimate homeownership counseling organizations within 3 days of receiving a loan application. If the list is not provided, the loan application must be withdrawn. The lender may also provide other required disclosures along with the list, and the list may be provided through the mortgage broker. Only one copy of the list must be provided, even if there are multiple lenders involved. Credit.org is a HUD approved housing counseling agency, and would appear on a list of homeownership counseling organizations. We’ve developed a Priority Pre-Purchase Counseling service to help borrowers and lenders comply with all HOEPA rules. One provision of HOEPA states that the borrower must get their Loan Estimate (LE) before counseling, so the counselor can review that information with the borrower. To expedite the process, we offer LE Secure Delivery when setting up an appointment online. After counseling is complete, the creditor must collect written certification that the borrower has completed the process. We provide this written certification right away after counseling so the loan process is not delayed (the “written” certification may be delivered by fax, mail, or email… we provide electronic delivery for the fastest and most secure certificate delivery). If you’re applying for a loan that is covered by HOEPA, get started online or call us to schedule an appointment today.