What is a Housing Counseling Disclosure?

A Housing Counselor is an experienced, trained professional who can advise individuals on preventing foreclosures, buying a home, protecting credit and other related issues.

Under RESPA, a lender must provide applicants for federally related mortgage loan with a list of certified home ownership counselors. TILA prohibits a creditor from making a high-cost mortgage loan unless it receives written certification that the borrower has obtained counseling from an approved counselor.

HUD's Housing Counseling Program, authorized by the Housing and Urban Development Act started in 1968.

Regulation X 1024.20(a)(1) requires lenders to provide a written list of home ownership counseling organizations in the loan applicant's location. The lenders must use the applicant's current five digit zip code to generate a list of the ten closest HUD-approved housing counseling agencies.