Homeownership Counseling Notice Requirement

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Question:

I was wondering if banks were still required to send out a Homeownership Counseling Notice if a customer's loan became 45 days past due or has this notice since expired.

Answer:

I have heard it was back but no one could provide a cite. The most informed information I heard was from James K. Baebel, CRCM, Assistant Director, Compliance Policy, FDIC, at the ABA Conference in June.

He said that the provision was in an omnibus budget bill when it went into committee, but was gone when it came out.

Since it can't be found, I'd say it isn't there.

That said, in my banks it would be more work to take it out of the notices, it is helpful information for the customer and the 800 number at HUD is working. I'll leave it there.

First published on BankersOnline.com 10/1/01