FHA Single Family Housing Policy Handbook 4000.1, Part II — e. Counseling Prohibited Practices (04/29/2024)
FHA Single Family Housing Policy Handbook 4000.1, Part II — e. Counseling Prohibited Practices (04/29/2024).
Verbatim regulatory text
Verbatim provisions from FHA Single Family Housing Policy Handbook 4000.1, Part II — e. Counseling Prohibited Practices (04/29/2024) — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
FHA Single Family Housing Policy Handbook 4000.1, Part II — e. Counseling Prohibited Practices (04/29/2024)
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
Operationalizing FHA Single Family Housing Policy Handbook 4000.1, Part II — e. Counseling Prohibited Practices (04/29/2024)
This is verbatim, source-snapshotted regulator text from the Claude for Compliance open corpus. To turn a rule like this into compliance work product: gap-analyze your policies and procedures (P&Ps) against these requirements to surface stale, conflicting, or missing provisions; operationalize any change with a ready-to-run update kit; and produce audit-ready evidence — every step grounded only in the regulator’s own words, never invented.
Source of record: https://claudeforcompliance.com/regs/hud-4000-1-ii-e-counseling-prohibited-practices/
· register hud-4000-1-ii-e-counseling-prohibited-practices · Claude for Compliance. Free to read and download;
see regulatory updates and methodology.