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CFPB Issues No-Action Letter to Facilitate Housing Counseling Services for Prospective Home Buyers
On, Friday, January 10, 2020, the CFPB granted a no-action letter (NAL) to Bank of America regarding the bank’s funding arrangements with housing counseling agencies certified by the U.S. Department of Housing and Urban Development (HUD). The more than 1,600 HUD-certified HCAs serve more than one million households annually. They offer pre-purchase homeownership counseling to potential borrowers looking to purchase their first home. As intended by the NAL policy, Bank of America based its application on the template from the CFPB’s previously issued NAL to HUD in September 2019.
CBA believes this NAL reflects well on the CFPB’s recently revised NAL policy. One of the intents of the policy is to complement enforcement. This NAL reflects the CFPB’s commitment to use the NAL as a safe-harbor tool. Here, Bank of America is entering into a limited type of third-party relationship to facilitate consumer counseling and education without fear of RESPA violations.”