For Lenders providing a list of counseling agencies, Counseling Locator helps you comply with HUD's specific requirements. As prescribed in the HECM MORTGAGEE LETTER 2009-10, "Lenders are required to provide every client with a list of no fewer than ten (10) HUD-approved counseling agencies... five of which must be in the local area and/or state... for the purpose of face to face counseling." In addition to the five local agencies, five national or multi-state organizations must be listed.

Counseling Locator does all this for you, keeping you compliant with this and HUD requirements. 

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In order to preserve independence, HUD has rules for lenders:

As stated in ML 04-25, “[b]efore, during, or after the counseling session is completed, the lender may not contact a counselor or counseling agency to refer a client; discuss a client’s personal information, including the timing or scheduling of the counseling; or request information regarding the topics covered in a counseling session.”  HUD wants to reiterate that HECM counseling must be provided by an independent third party that is neither directly or indirectly associated with the mortgage transaction.  Prospective borrowers must initiate communication with the counseling agency on their own, without the assistance of the lender.  It is very important that the prospective borrower contact a counseling agency on his or her own terms, when he or she is comfortable commencing the counseling process.