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HUD/OH RIN: 2502-AI94 Publication ID: Fall 2010 
Title: ●Housing Counseling: New Program Requirements (FR-5446) 
Abstract: This proposed rule would amend HUD’s regulations for the Housing Counseling program to address the new program requirements and certification requirements for HUD approved housing counselors as provided by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. 111-203, approved July 21, 2010). The proposed rule would also reflect the authority and responsibility of HUD’s new Office of Housing Counseling to coordinate and administer HUD’s Housing Counseling program. HUD's Housing Counseling program is authorized by section 106 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x). Section 106 authorizes HUD to provide, make grants to, or contract with public or private organizations to provide a broad range of housing counseling services to homeowners and tenants to assist them in improving their housing conditions and in meeting the responsibilities of tenancy or homeownership. The regulations contained in this part prescribe the procedures and requirements by which the Housing Counseling program will be administered. These regulations apply to all agencies participating in HUD's Housing Counseling program. The proposed regulatory amendments will implement the changes made to section 106 of the Housing and Urban Development Act of 1968 by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which include directing that HUD-approved housing counseling agencies provide counseling that addresses the entire process of homeownership and that HUD establish materials and forms to be used by HUD-approved housing counselors. 
Agency: Department of Housing and Urban Development(HUD)  Priority: Other Significant 
RIN Status: First time published in the Unified Agenda Agenda Stage of Rulemaking: Proposed Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: 24 CFR 214   
Legal Authority: 12 USC 1701x    42 USC 3535(d)   
Legal Deadline:  None

Statement of Need: The rulemaking is needed because HUD’s current regulations for the Housing Counseling program do not reflect the changes made to section 106 of section 106 of the Housing and Urban Development Act of 1968 by the Dodd-Frank Wall Street Reform. The changes enhance the choices and protections afforded borrowers participating in HUD's single family mortgage insurance programs.

Summary of the Legal Basis: The Housing Counseling program is authorized by section 106 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x), as recently amended by subtitle D of title XIV of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Alternatives: As noted, the purpose of this rule is to update HUD's regulations that do not reflect current statutory requirements. While certain statutory changes may be implemented through HUD's annual competitive allocation of fund for the Housing Counseling program provided by appropriations acts, the regulation nevertheless needs to be amended to reflect the program changed made by changes to the underlying statutory authority.

Anticipated Costs and Benefits: The benefit of the proposed regulatory amendments will be to strengthen the protection of consumers, primarily those who are prospective homeowners but also current homeowners through the enhanced counseling requirements provided by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The more comprehensive counseling services directed to be provided and the review of materials and forms by HUD designed to better educate consumers about homeownership are expected to produce homebuyers better educated about the homeownership process and less vulnerable to fraudulent mortgage practices. Costs are expected to minimal. The Dodd-Frank Wall Street Reform and Consumer Protection Act authorizes funding to help establish HUD’s new Office of Housing Counseling and the additional functions to be carried out by this office. The Dodd-Frank Wall Street Reform and Consumer Protection Act also authorizes additional funding for the expansion of services to be carried out by HUD-approved counseling agencies.

Risks: This rule poses no risk to public health, safety, or the environment.

Timetable:
Action Date FR Cite
NPRM  03/00/2011    
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Small Entities Affected: No  Federalism: No 
Included in the Regulatory Plan: Yes 
RIN Data Printed in the FR: No 
Agency Contact:
Ruth Roman
Office of Housing Counseling, Office of Housing
Department of Housing and Urban Development
Office of Housing
451 7th Street SW.,
Washington, DC 20410-0001
Phone:202 708-0317