The insurance fund pays for counseling delinquent FHA borrowers
What the document says“the fair market rate cost of counseling for delinquent borrowers described in paragraph (2) with respect to a covered mortgage loan described in paragraph (1)(A) shall be paid for by the Mutual Mortgage Insurance Fund, as authorized under section 203(r)(4) of the National Housing Act (12 U.S.C. 1709(r)(4)).”
The new subsection (j)(3) puts the fair market cost of counseling delinquent borrowers on loans insured by the Federal Housing Administration on the Mutual Mortgage Insurance Fund, if the requirements of sections 202(a)(3) and 205(f) of the National Housing Act are met.
What the document actually says“the fair market rate cost of counseling for delinquent borrowers described in paragraph (2) with respect to a covered mortgage loan described in paragraph (1)(A) shall be paid for by the Mutual Mortgage Insurance Fund, as authorized under section 203(r)(4) of the National Housing Act (12 U.S.C. 1709(r)(4)).”
Counseling costs money. For some loans that cost is paid by a fund. The fund is the one that insures those loans.
A fund is a pot of money set aside for one job. This one backs home loans insured by the government. The rule says the counseling bill comes out of it.
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