FHA Single Family Housing Policy Handbook 4000.1, Part II — a. Required Referral for HECM Counseling (04/29/2024)

FHA Single Family Housing Policy Handbook 4000.1, Part II — a. Required Referral for HECM Counseling (04/29/2024)

a. Required Referral for HECM Counseling (04/29/2024) i. Definition HECM Borrower refers to the original Borrower under a Note and Mortgage. The term does not include successors or assigns of a Borrower. Participating Agency refers to all housing counseling and intermediary organizations participating in HUD’s Housing Counseling program, including HUD-approved agencies, and affiliates and branches of HUD-approved intermediaries, HUD-approved multi-state organizations, and state housing finance agencies. ii. Standard The Mortgagee must provide each prospective Borrower with a list of the names, addresses, and telephone numbers of the Participating Agencies eligible to provide HECM counseling that includes: • all HUD-approved intermediaries listed on the HUD Intermediaries Providing HECM Origination Counseling Nationwide; • Participating Agencies that provide telephone counseling; and II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT B. Title II Insured Housing Programs Reverse Mortgages 1. Origination/Counseling Requirements Handbook 4000.1 539 Last Revised: 11/26/2025 • at least five Participating Agencies located in the prospective Borrower’s state or locality, including at least one local agency within a reasonable driving distance of the prospective Borrower’s residence for face-to-face counseling. In cases where HECM counseling is not available in the local area or state, Mortgagees must determine which Participating Agencies are most conveniently located to the Borrower and provide a listing of at least five Participating Agencies. Mortgagees must inform Borrowers that it is the Borrower’s responsibility to initiate communication with a Participating Agency to schedule counseling without the assistance of the Mortgagee. If the prospective Borrower has already received HECM counseling and provides the Mortgagee with an unexpired, signed and dated form HUD-92902, Certificate of HECM Counseling, then the Mortgagee does not need to provide the prospective Borrower with the list of Participating Agencies. iii. Required Documentation The Mortgagee must enter the date the prospective Borrower received the list of Participating Agencies in the FHA Connection (FHAC) HECM Referral List Update screen prior to closing. If the Mortgagee did not provide the list of Participating Agencies because the prospective Borrower provided evidence of counseling, the Mortgagee must select the “Not Referred” box in FHAC.

Source: FHA Single Family Housing Policy Handbook 4000.1, Part II — a. Required Referral for HECM Counseling (04/29/2024) · source URL · snapshot 8c03836f77f317e1