Will the HUD information booklet (Shopping for Your Home Loan) be edited/enhanced to incorporate the Homeowner Counseling Rule or is a new booklet for this rule being created?

Basically, will be need to provide another booklet in addition to Shopping for Your Home Loan?

Thanks!

Section 1450 of Dodd-Frank (within the Mortgage Reform and Anti-Predatory Lending Act portion of DFA) requires the Bureau to redo the booklet to address a long laundry list of items.

Until the CFPB gets the job done, you keep giving out the current version of the booklet, but beginning 1/10/14 on RESPA-covered loans, you'll provide a list of homeownership counseling organizations and, totally separately and not requiring dirt, on .32 loans under Reg Z (as well as Z-covered loans to 1st time borrowers that may involve negative am), you'll be communicating to the applicant that they must actually obtain the counseling before you can consummate the loan or open the open end credit account.

Eventually, this type of info will be communicated on the Loan Estimate form, but that hasn't been finalized yet. :-(

Have they released area home counseling organziations? I have not seen anything.

Me neither. They better get going on that!

I thought it was the same as the current HUD Home Counseling List??

I'm not sure. Do I find those counselors on HUD's website?

See this page on the CFPB's web site. http://www.consumerfinance.gov/regulatory-implementation/#additional

The requirement to provide the list of Homeownership Counseling services states that it must be provided with the Settlement Cost Booklet (aka special inforamtion booklet). As was stated in this string the CFPB is to update the booklet but has not yet done so. The current settlement cost booklet is only provided on 1st lien purchase money closed end loans secured by 1-4 family dwelling and land. The new counseling list must be provided on open and closed end dwelling and land secured loans. No restriction for purchase or lien. Given this it appears that the settlement cost booklet is no longer limited to purchase money 1st liens...Is this correct?

I see no mention of the Settlement Cost Booklet in the regulation that requires the delivery of the homeownership counseling list. I don't see any relationship between the two.

1024.20 List of homeownership counseling organizations.

(a) Provision of list. (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.

I'm sorry, I should have stated this differently. The preamble to the HCM rule page 28 states that "new RESPA section 5(c )requires lenders to include a list of homeownership counselors located in the area of the lender with the home buying inforamtion booklet that is to be distributed to applicants." Further on Page 29 "...the Bureau believes that the amendments to RESPA indicate that Congress intended the booklet and list of counselors to be provided to applicants for all federall related mortgage loans and not just purchase-money mortgage loans...the Bureau also noted that RESPA sections 5(a)and (b) as amended, indicate that the booklet and listo f counselors are to be provided to aplicants for all federally related mortgage loans." The expansion of the settlement cost booklet as you rightly noted is not in this final rule, only the requirements for the list of counselors was finalized. So, I'm wondering if the amended RESPA 5 (c )requirement for the booklet to be provided for all federally related loans rather than purchase money only loans is effective immediately without an implementing regulation, or if this will be handled with a future rulemaking. Thoughts?

Bump. Does anyone know when the coverage rules change for the Special Information Booklet?

Wait for the regulation to change. I doubt that the CFPB is going to change it until the combined TIL/RESPA form is ready to go.

"the Bureau believes that the amendments to RESPA indicate that Congress intended the booklet and list of counselors to be provided to applicants for all federall related mortgage loans and not just purchase-money mortgage loans..."

We are currently working to implement these requirements, and I have one question. Is there any indication that we cannot provide these together in the same envelope?? I know it seems evident that we should be able to, since it looks like Congress intended them both to be provided...just wanted to check. Thanks!