source:
  type: guide
  id: fnma-sel-b2-2-06
  authority: Fannie Mae Selling Guide B2-2-06 — Homeownership Education and Housing
    Counseling
  description: Fannie Mae Selling Guide B2-2-06 — Homeownership Education and Housing
    Counseling.
  coverage_tier: operative
obligations:
- id: fnma-sel-b2-2-06-full
  canonical_id: fnma-sel-b2-2-06-full
  section: Fannie Mae Selling Guide B2-2-06 — Homeownership Education and Housing
    Counseling
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B2-2-06 — Homeownership Education and Housing
      Counseling
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'B2-2-06, Homeownership Education and Housing Counseling (11/05/2025)
      Introduction This topic contains information on homeownership education and
      housing counseling, including: Overview Compliance with Law Deﬁnitions Transactions
      that Require Homeownership Education Meeting the Homeownership Education Requirement
      Housing Counseling Completion of Supplemental Consumer Information Form (Form
      1103) Additional Resources Summary of Homeownership Education and Housing Counseling
      Options Overview Fannie Mae believes that credit and underwriting guidelines
      alone are not always enough to assess a borrower’s readiness for homeownership.
      High-quality homeownership education and housing counseling can provide the
      borrower with additional information and resources to make informed decisions
      that support long-term homeownership sustainability. Fannie Mae requires programs
      that are aligned with the National Industry Standards (NIS) for Homeownership
      Education and Counseling or the U.S. Department of Housing and Urban Development
      (HUD) Counseling Program, or provided by a HUD-approved counseling agency. Compliance
      with Law All education, collection, and counseling eﬀorts must comply with the
      requirements of applicable federal and state laws, including the Equal Credit
      Opportunity Act, the Fair Debt Collections Practices Act, and the Fair Credit
      Reporting Act. Deﬁnitions The following deﬁnitions apply to these requirements:
      Homeownership Education: Education with an established curriculum and instructional
      goals, provided in a group, classroom setting, or via other formats, that covers
      homeownership topics such as the home- buying process, how to maintain a home,
      budgeting, and the importance of good credit. Housing Counseling: One-on-one
      assistance that addresses unique ﬁnancial circumstances and housing issues,
      and focuses on overcoming speciﬁc obstacles to achieve housing goals. Counseling
      includes topics such as repairing credit, locating cash for a down payment,
      recognizing predatory lending practices, understanding fair lending and fair
      housing requirements, avoiding foreclosure, and resolving a Published May 6,
      2026 236 ﬁnancial crisis. All housing counseling involves the creation of a
      budget and a written action plan and includes a homeownership education component.
      Transactions that Require Homeownership Education For the following transactions,
      at least one borrower on the loan must complete homeownership education prior
      to loan closing: if none of the borrowers on a purchase transaction underwritten
      in DU has at least one credit account or installment account reported on their
      credit report, regardless of the loan product or whether the borrowers are ﬁrst-time
      homebuyers (as instructed by DU); if all borrowers on a manually underwritten
      purchase transaction do not have a credit score, regardless of the loan product
      or whether the borrowers are ﬁrst-time homebuyers; HomeReady purchase transactions
      when all occupying borrowers are ﬁrst-time homebuyers; or purchase transactions
      with LTV, CLTV, or HCLTV ratios greater than 95%, when all borrowers are ﬁrst-
      time homebuyers. Note: The requirements that apply to purchases also apply to
      construction-to-permanent transactions that are processed as a purchase. Meeting
      the Homeownership Education Requirement To satisfy the homeownership education
      requirement, Fannie Mae permits any qualiﬁed third-party provider, independent
      of the lender, to administer homeownership education. The provider’s content
      must be aligned with NIS or HUD standards. The education may be delivered in
      various formats (in-person, Internet, via telephone, or a hybrid format). In
      lieu of homeownership education, the borrower may receive housing counseling.
      The lender must conﬁrm the course content is aligned with NIS or HUD standards
      and must retain a copy of the certiﬁcate of course completion in the loan ﬁle.
      Housing Counseling Housing counseling must be provided by a HUD-approved agency
      and meet HUD standards for the delivery of this service. The following requirements
      apply when counseling is obtained to satisfy the homeowner education requirement
      above: If a borrower opts to work with a housing counselor, completion of housing
      counseling prior to closing will also satisfy Fannie Mae’s homeownership education
      requirement. The lender must retain a copy of the certiﬁcate of course completion
      in the loan ﬁle. HomeReady loans where borrowers who complete housing counseling
      within 12 months prior to closing may be eligible for a loan-level price adjustment
      credit. For the LLPA credit to be applied to the loan the Housing Counseling
      data must be submitted to DU, and the loan must be delivered with SFC 184. See
      Chapter B5-6, HomeReady Mortgage for additional information. Published May 6,
      2026 237 Note: References to the use of a HUD-approved agency include aﬃliated
      agencies (as deﬁned in the HUD Housing Counseling Program Handbook) participating
      in a HUD program through a HUD-approved intermediary or State Housing Finance
      Agency. Completion of Supplemental Consumer Information Form (Form 1103) Lenders
      are required to present the Supplemental Consumer Information Form (Form 1103)
      to the borrower. The lender or borrower should complete the Homeownership Education
      and Housing Counseling section of the form for those transactions where homeownership
      education or housing counseling is required. Any data collected that is associated
      with Form 1103 should be provided to DU. Though not required for underwriting,
      the date of completion and Housing Counseling Agency ID must be provided to
      DU on loans for HomeReady borrowers eligible for the housing counseling LLPA
      credit referenced above. Additional Resources Fannie Mae provides additional
      resources to lenders, borrowers, and nonproﬁt agencies in support of homeownership
      education and housing counseling on its website. Summary of Homeownership Education
      and Housing Counseling Options The following table provides additional information
      to diﬀerentiate between homeownership education and housing counseling. Homeownership
      Education Housing Counseling Eligible Provider • Any qualiﬁed third-party provider,
      independent of the lender; which can include a mortgage insurance company (without
      regard to whether they provide mortgage insurance coverage for the particular
      transaction) • Education course provided by a Community Seconds or other down
      payment assistance program provider, where the program requires homeownership
      education or counseling provided by a HUD-approved agency HUD-approved agency
      Course Content Course content must align with NIS or HUD standards Course content
      must align with HUD standards Published May 6, 2026 238 Homeownership Education
      Housing Counseling Method of Delivery Any method oﬀered by an eligible provider
      Any method oﬀered per HUD standards Recent Related Announcements The table below
      provides references to recently issued Announcements that are related to this
      topic. Announcements Issue Date Announcement SEL-2025-09 November 05, 2025 Announcement
      SEL-2025-02 April 02, 2025 Announcement SEL-2024-04 June 05, 2024 Announcement
      SEL-2022-10 December 14, 2022 Announcement SEL-2021-09 October 06, 2021 Announcement
      SEL-2019-08 October 02, 2019'
  judgment: false
