Loan Modification

Borrower Beware: Real Estate Brokers Paying FHA Counselors for Leads

By Peter G. Miller

You might have thought the HUD counseling mess ended last year, but FHA borrowers now have a new counseling issue to consider: If you’re in default HUD counselors are not supposed to charge you. Some, however, have plainly not gotten the message.

In a letter to FHA mortgage lenders dated February 19th, HUD says:

“HUD had previously sent guidance to HUD approved counseling agencies indicating that fees may not be charged for clients needing homeless counseling or default counseling.

“It has come to HUD?s attention that some Housing Counseling agencies have been asking the real estate broker or agent on a short sale to provide their

Full post as published by FHA Mortgage Guide on February 23, 2009 (boomark / email).