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e. Counseling Prohibited Practices (04/29/2024)
i. Definition
Counseling Prohibited Practices refers to steering, directing, recommending, or otherwise encouraging any individual to seek the services of any one particular Participating Agency or HECM counselor.
Interested Parties refer to sellers, real estate agents, builders, developers, Mortgagees, TPO, or other parties with an interest in the transaction.
ii. Prevention of Undue Influence in HECM Counseling
Interested Parties to the transaction must not:
• be present during HECM counseling; or
• provide Borrowers with advance copies of the HECM counselor’s review questions with answers.
iii. Prohibited Steering and Payment of HECM Counseling Fees
The Mortgagee must not engage in Counseling Prohibited Practices.
The Mortgagee must not:
• discuss a Borrower’s personal information, including the timing or scheduling of the counseling; or
• request information regarding the topics covered in a counseling session.
The Mortgagee must not pay a Participating Agency or HECM counselor, directly or indirectly, for HECM counseling services.