HOMEOWNERSHIP COUNSELING POLL

HOMEOWNERSHIP COUNSELING POLL

Compliance Masters Group

July 18, 2014

 

A recent poll of our Compliance Master Group members centered on the issue of homeownership counseling rules. There were no huge surprises. We got a lot of confirmation of what we expected to see:

  • Providing the list of counseling organizations is not a significant burden;
  • The potential burden on consumers is high, but unrealized, since most of our members have few, if any, transactions subject to Section 32 of Regulation Z or that have potential negative amortization.

 

1. Considering a typical Homeownership Counseling List you might pull, what is the distance of the counseling organization farthest from your applicant?

a. Less than 25 miles          (   4%)

b. 25-50 miles                       ( 30%)

c. 51-100 miles                     ( 26%)

d. More than 100 miles    ( 17%)

No Answer                        ( 22%)

 

2. Considering a typical Homeownership Counseling List, what is the distance of the counseling organization closest to your applicant?

a. Less than 25 miles           (30%)

b. 25-50 miles                       (35%)

c. 51-100 miles                     (  9%)

d. More than 100 miles     (  4%)

No Answer                       (22%)

 

3. What is your process for obtaining the list of homeownership counselors?

a. Our loan origination software automatically generates the list.       (17%)

b. Someone in our bank pulls the list from the CFPB website.               (65%)

c. Other                                                                                                                         (  0%)

No Answer                                                                                                              (17%)

 

4. What is your process to document compliance with the requirement to provide a list of homeownership counseling organizations?

a. We keep a dated and signed copy of the list in the file.                                                                                               (13%)

b. We keep a dated copy of the list in the file.                                                                                                                     (13%)

c. We have a separate acknowledgement for the customer to sign stating they received the list.               (39%)

d. Our procedures show we comply and we do not retain documentation in our files.                                    (  9%)

e. Other                                                                                                                                                                                               (  0%)

No Answer                                                                                                                                                                                    (26%)

 

5. Have you had any issues/difficulties with accessing a list of counselors?

a. Yes                         ( 0%)

b. No                           (74%)

No Answer           (26%)

 

6. Has your institution had to obtain certification of pre-loan counseling as a result of a high-cost mortgage loan?

a. Yes                         (  0%)

b. No                           (70%)

No Answer           (30%)

 

7. Does your institution offer loans that may result in negative amortization?

a. Yes                         (  0%)

b. No                           (78%)

No Answer           (22%)

 

8. Has your institution made a loan to a first-time borrower that may result in negative amortization for which you had to obtain certification of pre-loan counseling?

a. Yes                         (  0%)

b. No                           (78%)

No Answer           (22%)

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