source:
  type: guide
  id: hud-4000-1-ii-e-counseling-prohibited-practices
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — e. Counseling
    Prohibited Practices (04/29/2024)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part II — e. Counseling
    Prohibited Practices (04/29/2024).
  coverage_tier: operative
obligations:
- id: hud-4000-1-ii-e-counseling-prohibited-practices-full
  canonical_id: hud-4000-1-ii-e-counseling-prohibited-practices-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part II — e. Counseling
    Prohibited Practices (04/29/2024)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — e. Counseling
      Prohibited Practices (04/29/2024)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: '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.
      2. Origination/Processing'
  judgment: false
