Skip to content
BOL Conferences Top Gun 23
Learn More - Click Here!

New Reply Thread Options
#2005088 - 03/30/15 08:15 PM HUD counseling notice
Anonymous
Unregistered

The HUD counseling notice is to be issued within 45 days of a mortgage loan becoming delinquent. I think we may have some accounts who received only a one-time notification.

Though not stated in anything I've read, it doesn't indicate this is a one-time only disclosure and I presume the creditor is expected to issue it every time the borrower brings a past due account current and then becomes delinquent again.

The CFPB clarified that type of understanding with RESPA and the loss mitigation letter. Does anyone recall something similar to the HUD delinquency notice (and SCRA notice)?

Return to Top Reply Quote Quick Reply Quick Quote
#2005117 - 03/30/15 08:46 PM Re: HUD counseling notice Anonymous
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 80,336
Galveston, TX
The HUD counseling notice is a one and done notice - although most banks just have it as an addendum to their 10, 15 or 30 day past due preprinted notice, which ever they use.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top Reply Quote Quick Reply Quick Quote
#2005125 - 03/30/15 09:05 PM Re: HUD counseling notice Anonymous
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,864
Cape Cod
From HUD's mortgagee letter 2015-04, which accompanied the most recent update to the form:

"Mortgagees must provide all information included in the attached “Notification to Homeowners of Availability of Housing Counseling Services” beginning on the 32nd day, but no later than the 45th day from the date payment was due, for each delinquency episode." (emphasis added)
Last edited by John Burnett; 03/30/15 09:06 PM.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top Reply Quote Quick Reply Quick Quote
#2005137 - 03/31/15 02:04 AM Re: HUD counseling notice Anonymous
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 80,336
Galveston, TX
I guess the FDIC better update their information:

https://www.fdic.gov/regulations/compliance/manual/pdf/V-4.1.pdf

Timing of Notice

The notice must be given to a delinquent homeowner borrower no later than 45 days after the date on which the homeowner becomes delinquent. If, within the 45-day period, the borrower brings the loan current again, no notification is required.

I would also have to say that HUD has no ability to issue a mortgagee letter and set such requirements as the "law" requires the "The Secretary shall issue any regulations that are necessary to carry out this subsection." under 12 U.S.C. 1701x (c)(7). A mortgagee letter is not regulation as it didn't go through the vetting process.

The secretary also has no authority to set a 32 day minimum past due status before sending the notice as the law says "Notification under subparagraph (A) shall not be required with respect to any loan for which the eligible homeowner pays the amount overdue before the expiration of the 45-day period under subparagraph (B)(ii)."

Who in their right mind sends a past due notice to a customer between 32 and 45 days past due. These people are so out of touch.

I think someone needs to call them on all of this.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top Reply Quote Quick Reply Quick Quote
#2012543 - 05/06/15 07:31 PM Re: HUD counseling notice requirements rlcarey
Chocaholic Offline
Gold Star
Joined: Aug 2005
Posts: 443
Northwest
I can't seem to find if it is required to state the loan number, past due date and past due balance on the Homeownership Counseling Notice. When I go to the 12 USC 1701x c 5 it gives the body of the notice only.

Why this matters is- our vendor has the information incorrect;
instead of past due date they are inserting maturity date info although calling it past due date...

To me being incorrect is much worse than removing the information -which we are inclined to do..

Any help is appreciated!

Return to Top Reply Quote Quick Reply Quick Quote
#2276940 - 10/21/22 08:33 PM Re: HUD counseling notice requirements Anonymous
Anonymous
Unregistered

Is this notice still required? It says the Mortgagee letter was superseded by Handbook 4330.1, but I can't find this information in what I think is that handbook on HUD's website?

Return to Top Reply Quote Quick Reply Quick Quote
#2276944 - 10/21/22 09:55 PM Re: HUD counseling notice Anonymous
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 80,336
Galveston, TX
4330.1

See 1-9 DELINQUENCY AND DEFAULT COUNSELING
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top Reply Quote Quick Reply Quick Quote
Quick Reply:
HTML is disabled
UBBCode is enabled




Moderator:  MagicCity, P*Q, Truffle Royale