“HUD does not permit lenders to steer to any particular agency, but having a no cost option for counseling is a great thing to have.”

So, HUD does not pernit lenders to steer to any particular agency. I realize that is their policy but how can we, as people that are supposed to be working for the senior citizen, not point them to the free one? I am guessing everyones customers are like mine, 70% have a hard time coming up with the counseling fee. I think it would be wrong of us NOT to guide them towards the free one.

Easy! Explain to your client that there are companies out there that will do it for free. It’s up to them to do the research. This way you did not steer, you mearly educated.

It's easy. In the list of counseling agencies we give to our customers (and we list 10), we include the amount each agency charges for the counseling session, along with whether telephone counseling is available.

How would any of you feel if another lender decided that they would waive origination fees for the next three months? How would you feel if counselors told clients, “there is a lender who will waive his origination fee, just go some research”? How would you like it if counselors provided prospective borrowers with a list of lenders, detailing how much you charge? So why do you think it’s a great idea to do this to counselors? It’s all very well to say that MMI’s move may make other agencies consider their fees, but it’s a bit like saying that when Wal-Mart gives something away, other businesses feel forced to do likewise. In the world of business, what MMI is doing would be considered a flagrantly anti-competitive practice, using government money to essentially shut down its competitors until after October 1. Other agencies don’t have the option of doing this, because they don’t receive the huge grant from HUD that MMI did. As a consequence, your clients will get crappy counseling, but, hey, it will be free — for now.