In the January 31, 2013 issue of the Federal Register (78 FR 6856) the Bureau of Consumer Financial Protection (CFPB) published a final rule that adds Section 1024.20 to Regulation X to require lenders to provide a loan applicant for a federally related mortgage loan (with certain exceptions) with a written list of homeownership counseling organizations not later than three business days after the lender or mortgage broker receives an application or information sufficient to complete an application. The final rule is effective on January 10, 2014, and applies to transactions for which an application is received on or after that date. The text of the final rule is located on pages 6961-6962 of the above Federal Register and also is reprinted in the attached Exhibit A. The final rule requires lenders to obtain the homeownership counseling organizations list from either of the following sources: (i) a CFPB-maintained website; or (ii) data made available by the CFPB or HUD. For lenders who wish to use the first alternative to obtain the list, the CFPB has established the following website that will automatically generate the required list when the loan applicant’s zip code is entered: http://www.consumerfinance.gov/find-a-housing-counselor/. Download complete memorandum below
