The recent cancellation of a HUD-supported housing counseling tool has left many HECM counselors without essential resources. The cancellation, attributed to a loss of government funding and linked to broader cost-cutting initiatives led by the U.S. DOGE Service, was not clearly communicated, causing confusion among counselors. Some counselors report that the impact on operations may be minimal, as they can adapt existing tools. Trade groups like NRMLA recommend using alternative budget tools and local resources to mitigate the effects of the cancellation.
But the tool is no longer available, with the underlying contract that funds it having ended on Feb. 11. An announcement to NRMLA members said that HUD's Office of Housing Counseling issued a notice informing them of the contract's cancellation, but counselors who spoke with HousingWires Reverse Mortgage Daily (RMD) could not locate an official announcement.
When HUD previously canceled a different tool used in HECM counseling - the Financial Interview Tool (FIT) - Cambridge Credit Counseling Corp. secured its own budget to develop an in-house tool.
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