The Department of Housing and Urban Development (HUD) is requesting the approval to collect information of consumers who have participated, as mandated by law, in the Home equity Conversion Mortgage (HECM) counseling sessions.
The goal, according to HUD, is to use the information - which comprises 300 households or individual borrowers - to review the counseling sessions to assure integrity and performance.
Basically, this is a good thing for borrowers and lenders alike. It helps the HUD continue to enforce modern standards and practices, while assuring that lenders are cooperating with the rules and regulations, and that borrowers are being educated by a financial consultant prior to taking out these home loans.
Not everyone is cushy about the HUD's gathering of this information, though. Some borrowers may have confidentiality issues that they wish to voice, something the HUD is welcoming.
They are actually asking for comments from the public for the next 60 days to help them better decide whether or not this is a necessary function in assuring synergistic protocol between lenders and borrowers.
Comments can include items such as how the HUD can improve quality, whether the data gathering is necessary, how they can make it easier for respondents to respond and what form of collection methods and technologies can be utilized to improve the process.
"HUD encourages interested parties to submit comments in response to these questions," the notice said.
Comments must be received by March 25th, 2016. They need to include the name and or OMB control number.
If you are interested in responding, make sure you address your letters and comments to: Colette Pollard, reports management officer for HUD, at 451 7th Street SW., Room 4176, Washington, D.C. 20410-5000. You can also email Pollard for a copy of the proposed forms or other available information at: Colette.Pollard@hud.gov.
You can learn more about reverse mortgages by visiting the HUD online.