MortgageReverse

HUD Issues Counseling FAQ Following Slashed Funding

A Department of Housing and Urban Development-issued Frequently Asked Questions document addresses the recent budget cuts that will effectively put an end to HUD housing counseling funding, which has previously assisted counseling agencies that provide reverse mortgage counseling services.

The FAQ is the first public statement from HUD relating to the counseling cuts, which have garnered a flurry of concern throughout the industry. Among the points addressed in the FAQ, HUD underlines that the entire Housing Counseling Program funding was “zeroed out,” including funds for counseling training, and that none of the proposed funding for FY 2011 will be available. (Currently, FY 2010 funds are being used toward FY 2011.)

HUD states that Housing Counseling Program grants awarded in December 2010 will not be impacted, and that Housing Counseling Program grantees can continue to submit invoices for reimbursement under the terms of their grant agreements.

For housing grants in the FY 2012 budget, there will likely be a “lapse” in funding, according to HUD, even if new housing counseling funding through the FY2012 budget is developed with Congress.

With respect to funding between now and the FY 2012 budget, HUD said, there may be limited funds available from previous funding allocations. HUD is evaluating the possibility of developing those funds currently. Other sources of funding do not fall under HUD’s authority.

View the FAQ from HUD.

Written by Elizabeth Ecker

 

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