The Dodd Frank Act Counselor Certification Requirement and HUD s Proposed HAWK Pilot Program Rural Seminar - Better Together, May 22, 2014

Transcription

1 The Dodd Frank Act Counselor Certification Requirement and HUD s Proposed HAWK Pilot Program 2014 Rural Seminar - Better Together, May 22, 2014

2 Quick Overview The Dodd-Frank Wall Street Reform and Consumer Protection Act Requires: Counseling organizations and individual counselors be certified by HUD as competent to provide services. Prohibits distribution of grant funds to agencies that are not in compliance with the ruling and requires the reimbursement of grant funds in the event misuse is determined. 2

3 HUD Designations HUD-Approved Counseling Agency: The term HUDapproved counseling agency means a private or public nonprofit organization that is exempt from taxation under section 501(c )(3) of the Internal Revenue Code of 1986; and certified by the Secretary to provide housing counseling services HUD-Certified Housing Counselor: A counselor, employed by a participating agency, who has passed the requisite examination and is certified by HUD as competent to provide housing counseling services pursuant to this part. 3

4 Counselor Examination The written examination will be administered by HUD or an entity or entities contracted by HUD. The proposed rule provides for the examination only to be taken and passed once for an individual to be certified. Counseling agencies and individual counselors must be in compliance with the certification requirements, no later than one year after the effective date of the final rule. The counselor certification is only valid when used in conjunction with a HUD-approved agency. 4

5 Counselor Certification To become a HUD-certified counselor, individuals, working with a participating agency, must demonstrate competency by passing a standardized written examination covering six major areas: (1) Financial Management; (2) Property Maintenance; (3) Responsibilities of Homeownership and Tenancy; (4) Fair Housing Laws and Requirements; (5) Housing Affordability; and (6) Avoidance of Rental Eviction and Mortgage Delinquency. 5

6 What We Don t Know Yet (1) When the final rule will be released. (2) How HUD will Monitor Counselor Certification? (3) What will be the cost of the exam? (4) Will continuing education be required? 6

7 HUD s Homeowners Armed With Knowledge: HAWK PILOT Program Proposed May 15, 2014 Comments Due July 14, 2014 Will provide FHA Mortgage Insurance pricing incentives to first time buyers who participate in counseling 7

8 NeighborWorks Center for Homeownership Education and Counseling: Avenues to Advance Knowledge in Housing Counseling Housing Counseling Area: Financial Management Property Maintenance Fair Housing Housing Affordability Responsibilities of Homeownership & Tenancy Avoiding Delinquency/ Default Eviction Topics Include: Budget, Savings, Debt Reduction, Credit, Credit Review and Credit Rebuilding Maintaining and Improving Your Home, Budgeting for Homeownership, Home Safety, Energy Conservation Consumer Protection Laws, Federal/State/ Local Laws and Compliance, Regulations, Civil Rights, How to file a complaint Affordability Analysis, Math Calculations, How to use tools to perform calculations, Affordability Analysis-Debt, Math Calculations- Income, DTI, budget analysis Home Inspection, Appraisal and Property Valuation, Owner/Renter Responsibility: Landlord/Tenant Rights and Responsibilities Foreclosure Prevention Options, State Foreclosure Process, Refinance 8

9 NCHEC Training Activities to Help Prepare Counselors eclassroom Express Webinar Training NeighborWorks is offering a series of eclassroom Express 90 minute webinar training sessions to help counselors prepare for certification requirements associated with the Dodd-Frank Wall Street Reform and Consumer Protection Act. Although HUD has not yet defined specific content for the exam, our sessions are designed to address the general content areas of the Act: Property Maintenance May 29, 2104 Avoiding Delinquency/Default : June 5 Responsibilities of Homeownership and Tenancy June 12 th For More Information visit: 9

10 Questions? 10