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High-Cost Mortgage Counseling program

After the mortgage and credit crisis, congress passed a number of regulations intended to protect consumers from entering into “high-risk” real estate or credit agreements without fully understanding the long-term implications. Several of these new regulations that went into effect on January 10, 2014 now require borrowers to receive third-party housing counseling prior to closing on certain types of loans and lines of credit that have terms considered “high-cost” or “high-risk.”
As part of the counseling session, three main areas are covered:

  1. A review of the terms and conditions of the high-cost loan, and verifying that the borrower fully understands the implications of the loan/line of credit they are taking out
  2. Verifying that the lender provided all of the required disclosures to the borrower
  3. Discussion with the borrower of how the high-cost loan payments may impact their finances

If you would like more information about the aforementioned regulations or about what constitutes a “high-cost” loan, visit the website of the Consumer Financial Protection Bureau.

Click here for the High-Cost Mortgage Counseling Intake packet