Subtitle D: Office of Housing Counseling
Establishment of Office of Housing Counseling
Establishes Office of Housing Counseling within HUD headed by Director to perform wide range of activities including research, public outreach, and policy development related to counseling as well as establishment, coordination and administration of HUD counseling related programs and other activities authorized under Act.
Adds new section that provides Secretary is responsible for establishing, coordinating, and monitoring administration of counseling procedures for homeownership and rental counseling. This includes standards and performance measures related to homeownership and rental housing counseling. It also provides that Secretary, in consultation with advisory committee establishes standards for materials and forms used by organizations providing homeownership counseling services. Makes Secretary responsible for providing certification of various computer software programs for consumers to evaluate different residential mortgage loan proposals. These functions will happen in tandem while Director develops, implements, and conducts public service multimedia campaigns concerning availability of homeownership counseling that provide contact information.
Grants for Housing Counseling Assistance
Authorizes up to $45 million for financial assistance to HUD-approved counseling agencies and state housing finance agencies for efficient and successful counseling programs.
Requirements to Use HUD-Certified Counselors under HUD Programs
Limits assistance for counseling activities to HUD certified counselors or counseling organizations.
Study of Defaults and Foreclosures
Requires HUD to conduct an extensive study of root causes of foreclosures using empirical data.
Default and Foreclosure Database
Requires HUD in consultation with Federal financial regulatory agencies to establish and maintain data base on foreclosures and defaults that would be collected, aggregated and made available on census tract basis.
Definitions for Counseling-Related Programs
Includes definitions for counseling-related programs including assistance recipients.
Accountability and Transparency for Grant Recipients
Requires HUD to track counseling assistance and requires reimbursement of misused funds.
Updating and Simplification of Mortgage Information Booklet
Requires HUD every five years to prepare booklet in various languages and cultural styles concerning mortgage process to help consumers applying for federally related mortgage loans that includes information prescribed in section including nature and purpose of costs, lending practices, questions consumers should ask as well as other information identified or deemed necessary by Secretary.
Home Inspection Counseling
Requires HUD to take necessary actions to inform potential homebuyers of importance of obtaining independent home inspection.
Warnings to Homeowners of Foreclosure Rescue Scams
Provides assistance to Neighborhood Reinvestment Corporation to provide notice to delinquent borrowers concerning rescue scams.