C.F.R. » Title 24 » CHAPTER II—OFFICE OF ASSISTANT SECRETARY FOR HOUSING—FEDERAL HOUSING COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT › SUBCHAPTER B—MORTGAGE AND LOAN INSURANCE PROGRAMS UNDER NATIONAL HOUSING ACT AND OTHER AUTHORITIES › PART 206—HOME EQUITY CONVERSION MORTGAGE INSURANCE › Subpart B—Eligibility; Endorsement

24 C.F.R. § 206.41

Counseling

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(a) List provided. At the time of the initial contact with the prospective borrower, the mortgagee shall give the borrower a list of the names, addresses, and telephone numbers of HECM counselors and their employing agencies, which have been approved by the Commissioner, in accordance with subpart E of this part, as qualified and able to provide the information described in paragraph (b) of this section. The borrower, any Eligible or Ineligible Non-Borrowing Spouse, and any non-borrowing owner must receive counseling.

(b) Information to be provided. (1) A HECM counselor must discuss with the borrower:

(i) The information required by section 255(f) of the NHA;

(ii) Whether the borrower has signed a contract or agreement with an estate planning service firm that requires, or purports to require, the borrower to pay a fee on or after closing that may exceed amounts permitted by the Commissioner or this part;

(iii) If such a contract has been signed under paragraph (b)(1)(ii) of this section, the extent to which services under the contract may not be needed or may be available at nominal or no cost from other sources, including the mortgagee; and

(iv) Any other requirements determined by the Commissioner.

(2) If the HECM borrower has an Eligible Non-Borrowing Spouse, in addition to meeting the requirements of paragraph (b)(1) of this section, a HECM counselor shall discuss with the borrower and Eligible Non-Borrowing Spouse:

(i) The requirement that the Eligible Non-Borrowing Spouse must obtain ownership of the property or other legal right to remain in the property for life, upon the death of the last surviving borrower;

(ii) A failure to obtain ownership or other legal right to remain in the property for life will result in the HECM becoming due and payable and the Eligible Non-Borrowing Spouse will not receive the benefit of the Deferral Period;

(iii) The requirement that the property must be the principal residence of the Eligible Non-Borrowing Spouse prior to and after the death of the borrowing spouse;

(iv) The requirement that the Eligible Non-Borrowing Spouse fulfills all obligations of the mortgage, including the payment of property charges and upkeep of the property; and

(v) Any other requirements determined by the Commissioner.

(3) If the HECM borrower has an Ineligible Non-Borrowing Spouse, in addition to meeting the requirements of paragraph (b)(1) of this section, a HECM counselor shall discuss with the borrower and Ineligible Non-Borrowing Spouse:

(i) The Deferral Period will not be applicable;

(ii) The HECM will become due and payable upon the death of the last surviving borrower; and

(iii) Any other requirements determined by the Commissioner.

(c) Certificate. The HECM counselor will provide the borrower with a certificate stating that the borrower, Non-Borrowing Spouse, and non-borrowing owner, as applicable, has received counseling. The borrower shall provide the mortgagee with a physical copy of the certificate.

Notes of Decisions
Cited in 6 cases (1 in the last 5 years), 2009–2025 · leading case: Brown Ex Rel. Richards v. Brown, 239 P.3d 602 (Wash. Ct. App. 2010).
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Brown Ex Rel. Richards v. Brown, 239 P.3d 602 (Wash. Ct. App. 2010). “" [14] Dottie also cites to 24 C.F.R. section 206.41(a) and 12 C.F.R.”
Brown v. Brown, 157 Wash. App. 803 (Wash. Ct. App. 2010). “Dottie also cites to 24 C.F.R. section 206.41(a) and 12 C.F.R.”
Kennedy v. World All. Fin. Corp., 792 F. Supp. 2d 1103 (E.D. Cal. 2011). “, 24 C.F.R. § 206.41 (describing mandatory loan counseling for reverse mortgages).”
OneWest Bank N.A. v. Rey, 2019 NY Slip Op 8569 (N.Y. App. Div. 2019). · cites it 2× “The motion was based solely upon the alleged failure of the plaintiff's predecessor in interest to comply with section 255(d) of the National Housing Act (Pub L 73-479, tit II, § 255[d], 48 US Stat 1246, as added by Pub L 100-242, tit IV, § 417[a], 101 US Stat 1908, codified at…”
McKaughan v. Wells Fargo Bank NA (D.S.C. 2025). “24 C.F.R. § 206.41 (explaining requirement to receive housing counseling from participating housing counseling organizations outside of HUD).”
In re Doar, 28 Misc. 3d 759 (N.Y. Sup. Ct. 2009). “Congress’ concern is reiterated and codified in 24 CFR 206.41, the regulations that accompany the National Housing Act.”
— 24 C.F.R. § 206.41(a) — 2 cases
Brown Ex Rel. Richards v. Brown, 239 P.3d 602 (Wash. Ct. App. 2010). “" [14] Dottie also cites to 24 C.F.R. section 206.41(a) and 12 C.F.R.”
Brown v. Brown, 157 Wash. App. 803 (Wash. Ct. App. 2010). “Dottie also cites to 24 C.F.R. section 206.41(a) and 12 C.F.R.”
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