BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D.C. 20551
DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS
CA 03-14
December 12, 2003
TO THE OFFICERS AND MANAGERS IN CHARGE OF CONSUMER AFFAIRS
SECTIONS:
SUBJECT: Revised Examination Procedures for Homeownership Counseling
Section 106(c)(5) of the Housing and Urban Development Act of 1968 (the "Act") (12 U.S.C. 1701x (c)(5)) provides for homeownership counseling notification by creditors to eligible homeowners. The Act has been amended at various times, with the most recent amendment on November 26, 2001 , when the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act of 2002 (Pub. L. 107-73) was enacted. Section 205 of that Act repealed the previous sunset provision.
Attached are revised examination procedures for homeownership counseling (17 KB PDF) approved by the FFIEC Task Force in July 2003. You should note that the major change in the revised examination procedures is that they now apply only to delinquent homeowners and not to first-time home buyers.
Please distribute these procedures to your examination staff for immediate use.
Any questions on the examination procedures should be directed to the review examiner for your district.
Sincerely,
(signed)
Shawn McNulty
Associate Director