Counselor performance may be measured against local default rates
What the document says“the Secretary may consider the performance of the counselor compared to the default rate of all counseled borrowers of a covered mortgage loan in comparable markets and such other factors as the Secretary determines appropriate to further the purposes of this section.”
The new paragraph 106(e)(7) lets the Secretary judge a counselor who does prepurchase counseling by comparing that counselor's record to the default rate of all counseled borrowers of a covered mortgage loan in comparable markets, along with any other factors the Secretary thinks fit. The same paragraph defines a covered mortgage loan as a loan on a home for one to four families that is insured by the Federal Housing Administration or guaranteed under section 184 or 184A of the Housing and Community Development Act of 1992.
What the document actually says“the Secretary may consider the performance of the counselor compared to the default rate of all counseled borrowers of a covered mortgage loan in comparable markets and such other factors as the Secretary determines appropriate to further the purposes of this section.”
The housing agency may look at how one counselor does. It can hold that up against how borrowers in like places do. It may look at other things too.
A default is when a person stops paying a home loan. Counselors help people avoid that. This lets the agency compare one counselor to the rest.
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