Question: 1) Does the regulation require that the Homeownership Counseling Notice be provided to “All Applicants” or just to the “Main Applicant”? I cite Section 1450 of the Dodd-Frank Act[ which states that it is required to be provided to federal related mortgage loan applicants. (Note: It makes reference to loan applicants, plural form, as compared to singular.
I'm trying not to over interpret the regulation but would like some clarity. Appreciate your response.
Thank you in advance.
Regulations citation: § 1024.20 List of homeownership counseling organizations
(a) Provision of list.
a. (1) Except as otherwise provided in this section, not later than three business days after a lender, mortgage broker, or dealer receives an application, or information sufficient to complete an application, the lender must provide the loan applicant with a clear and conspicuous written list of homeownership counseling organizations that provide relevant counseling services in the loan applicant's location. The list of homeownership counseling organizations distributed to each loan applicant under this section shall be obtained no earlier than 30 days prior to the time when the list is provided to the loan applicant …
Section 1450 of the Dodd-Frank Act
The 2013 HOEPA Final Rule implemented numerous Dodd-Frank Act requirements. Section 1450 of the Dodd-Frank Act amended section 5(c) of the Real Estate Settlement Procedures Act (RESPA) to require lenders to provide federally related mortgage loan applicants with a “reasonably complete or updated list of homeownership counselors who are certified pursuant to section 106(e) of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x(e)) and located in the area of the lender.”
The RESPA Homeownership Counseling Amendments implements this section 1450 amendment in Regulation X § 1024.20(a). In implementing this Dodd-Frank Act requirement, § 1024.20(a)(1) requires lenders to provide the loan applicant with a written list of homeownership counseling organizations that provide relevant services in the loan applicant’s location.