HUD Collecting Information on Reverse Mortgage Counseling Consumers
The Department of Housing and Urban Development (HUD) is planning to collect information on consumers who have participated in the Home equity Conversion Mortgage (HECM) counseling sessions.
HUD mandates these sessions as a way to protect potential HECM borrowers from lack of understanding about the HECM product. By surveying counseling participants, HUD plans to use the information, comprising 300 households and individual borrowers, to review the counseling processes, enhance its performance and assure integrity and performance.
Lending institutions say that this is a good thing for lenders and borrowers alike. By helping HUD enforce modern standards and practices, borrowers can feel secure that lenders cooperate with rules and regulations pertaining to the HECM loan. This is important to borrowers who rely on the education that they receive from HUD-approved financial consultants, prior to taking out a Reverse Mortage.
HUD is asking the public to offer their comments, online, as they determine how to gather the data to ensure a synergistic protocol between borrowers and lenders.
The type of information that HUD is looking for includes
- how can HUD improve quality
- is the data gathering necessary
- how can HUD make it easier for respondents to respond
- what form of collection methods and technologies should be utilized to improve the process of data collection
In its notice, HUD states that “HUD encourages interested parties to submit comments in response to these questions.” The comments board is open until March 25th, 2016 and commenters must include their OMB control number or their name (or both).
Comments should be addressed to: Colette Pollard, reports management officer for HUD, 451 7th Street SW., Room 4176, Washington, D.C. 20410-5000.
Comments and requests for the proposed forms and other available documents can also be requested from Pollard by emailing her at Colette.Pollard@hud.gov.