HUD’s HECM roster certification is governed by 24 CFR 206.304 which requires housing counselors not be listed on HUD’s Credit Alert Interactive Response System (CAIVRS). The proposed rule “Housing Counseling Program: New Certification Requirements” for housing counselor certification published September 13, 2013, proposed to require only that a HUD-certified housing counselor pass the requisite examination, be employed by a participating agency, and be certified by HUD as competent to provide housing counseling services.

The certification examination will continue to be available after the deadline for counselors that failed the examination and for new counselors to take the examination.

Under the Housing Counseling statute, the Office of Housing Counseling (OHC) must contract with one entity to develop training and certification testing for housing counselors. HUD’s Contracting Office published a market research notice in FEDBIZOPPS on June 18, 2013. The OHC reviewed the responses to identify a qualified certified 8(a) small business entity registered with the Small Business Administration (SBA) to conduct business with the federal government. HUD awarded a contract to Bixal Solutions, Inc.

Only staff that provides housing counseling to clients under HUD’s Housing Counseling Program must be certified.

The Dodd-Frank Act only requires that HUD-approved counselors demonstrate competency in six areas as evidenced by passing an examination. However, HUD approved agencies and counselors may choose to specialize in certain areas as reflected in their official counseling work plans. All counselors are required by HUD Handbook 7610.1, Rev.5 Sections 3-5(E) and 3-12, to make a knowledgeable referral to another agency that does provide the type of counseling that its clients might need, based on the initial counseling intake, and note the referral in the client's file.

Under the statute, all counselors providing housing counseling in connection with HUD programs must be certified. Additionally, under the statute, to become certified a counselor must successfully pass the HUD Certification Examination and, under HUD’s proposed rule, be employed by a HUD participating housing counseling agency. OHC is considering allowing individuals to take the HUD Certification Exam but elect not to become certified.

Yes, HECM Housing Counselors will be required to successfully pass both the HECM exam and the HUD Certification Exam. The Dodd Frank Act requirement that all counselors who provide homeownership and rental counseling be certified applies even to those counselors who provide HECM counseling exclusively. All HECM Roster requirements continue to apply, thus HECM counselors must take the HECM exam in order to provide HECM counseling. See Mortgage Letter 2009-47.