Today, HUD announced counseling agencies to charge seniors a fee for counseling services. HUD indicated charges should not be in excess of $125.
The counseling can be paid by the senior, by the lender or can be paid out of the loan proceeds by being listed on the HUD settlement statement. Lenders cannot any anyway steer clients to a specific counselor. However, it is common in the industry to subscribe to a service which randomly selects a counselor from a specified pool of counselors. This service is called Direct Connect. Many lenders use this service because the counselors are HUD approved and also meet specific criteria of professionalism and service. .
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