HUD Housing Counseling Services


On Oct. 25, HUD proposed rule on delivery of housing counseling.


  • HUD proposed to modernize the delivery of housing counseling services nationwide.
  • This proposed rule would update existing HUD regulations (24 CFR 214) requiring that agencies provide in-person counseling to clients, allowing other client service methods.
  • Proposed Rule
  • In 2007, HUD published a final rule titled Housing Counseling Program including 24 CFR 214 requiring agencies to provide in-person counseling services to clients.
  • In 2020, due to concerns around COVID–19, a partial waiver of 24 CFR 214.300(a)(3), In-Person Housing Counseling Requirement, was issued in effect to Dec. 31, 2023.
  • Based on feedback received from stakeholders HUD has determined that these practical, cost-effective, and accessible, have not led to adverse compliance issues.
  • When the waiver expires participating agencies will continue to be required to provide in-person counseling services; proposed rule aims to modernize current regulations.
  • HUD's proposed rule would allow housing counseling agencies to use alternative communication methods, including virtual meeting tools, instead of in-person services.
  • Agencies that choose not to provide in-person services will be required to refer clients to local providers that provide such services, as requested to maintain access equity.
  • This proposal will not modify requirements that participating agencies have functioned within their target geography for at least a year and maintains a community base.
  • Consultation
  • Public comments on proposed regulation are due on or before Dec. 26, 2023.
  • Sep. 2024 HUD Fed Reg Final Rule
  • On Sep. 16, 2024, HUD issued final rule on housing counseling, in the federal register.
  • After considering public comments, final rule adopted proposed rule without change.
  • Final rule becomes effective Oct. 16, 2024.

Regulators HUD
Entity Types CNSM; MG Orig; Servicer
Reference 89 FR 75497, 9/16/2024; 88 FR 73298, 10/25/2023; RIN 2502-AJ70; FR-6388-F-02; Citation: 24 CFR 214; 24 CFR 214.300(a)(3);
Functions Compliance; Financial; Legal; Operations; Outsourcing
Countries United States of America
Category
State
Products Mortgage
Regions Am
Rule Type Final
Rule Date 10/25/2023
Effective Date 10/16/2024
Rule Id 189116
Linked to N/A
Reg. Last Update 9/16/2024
Report Section US Consumer

Last substantive update on 09/18/2024