About The Counselor Program
Counseling Program Highlights
- Provides housing counseling services to families and individuals
- Provides administration and oversight of homeownership counseling and rental counseling
- Administers the HUD approval process to become a HUD-approved housing counseling agency
- Administers the approval process to become a certified HUD Housing Counselor
The HUD Housing Counseling Program supports the delivery of a wide variety of housing counseling services to homebuyers, homeowners, low- to moderate-income renters, and the homeless. The primary objectives of the Program are to improve financial literacy, expand homeownership opportunities, improve access to affordable housing, and preserve homeownership.
To provide housing counseling services through HUD Programs, individuals must certify through HUD by:
- Passing a new written examination – The HUD Housing Counseling Certification Examination.
- Verifying employment at a HUD approved Housing Counseling Agency.
Refer to the HUD Exchange for more information about the HUD Housing Counseling Program.
Training Overview
Designed for individuals seeking to become HUD Certified Housing Counselors, this website offers free online training materials covering a broad range of topics, including responsibilities of homeownership and tenancy; avoidance of foreclosure and eviction; financial management; and fair housing. Offered to assist housing counselors in preparing for the upcoming, mandatory certification exam, the HUD Housing Counselors Training is available to anyone and it is not required for certification.
- Free access to 15 training modules, 30-90 minutes each
- Specialized content to prepare for the certification exam
- Optional – not required for certification
- Two formats available for study at your own pace – anytime, anywhere
Access interactive training materials in the Learning Center → Download PDF study guides for each module (English and en Espanol) →
Housing counselors can use the training to obtain the broad level of knowledge required for certification to provide housing counseling services under HUD programs.
The fifteen training modules provide opportunities to learn, practice, and explore six areas of content.
Financial Management
Module Summary
Fundamental knowledge of personal finance is central to successful household management, and housing counselors should understand budgeting basics in order to assist clients effectively. In this module, you'll learn how to help clients identify and define their financial goals and how to coach them on creating a household budget. You'll also learn to help identify strategies to adjust the budget and develop a realistic Client Action Plan.
Learning Objectives
By the end of this module, counselor will be able to:
- Coach a client to help the client create a household budget based on financial goals.
- Evaluate a client's current financial situation, including income and expenses, and future goals to help the client achieve short and long-term financial stability.
- Advise a client about strategies to increase income and reduce expenses and debt to achieve stated financial goals.
Module Summary
An important role of a housing counselor is to help clients understand the importance of establishing and maintaining a good credit history in order to achieve their financial goals. In this module, you'll learn how to analyze a client's credit report and explain the components of a credit score. You'll also learn to advise clients on the pitfalls of bad credit, and how to improve credit scores. Last, you'll become familiar with consumer rights protected by credit laws and how to explain these to clients.
Learning Objectives
By the end of this module, counselor will be able to:
- Analyze a client's credit report in order to break down the information for the client into easily understood concepts.
- Evaluate a credit score and be able to explain to a client how this score is calculated.
- Advise a client on understanding credit challenges and methods to improve credit scores, including how to correct reporting errors, how much credit to have, and which types are better.
- Comprehend consumer rights protected by the Fair Credit Reporting Act (FCRA), the Fair and Accurate Credit Transactions Act (FACTA), and the Fair Credit Billing Act (FCBA), and be able to explain these rights to clients.
Module Summary
As clients learn how to manage money, they will need guidance from housing counselors to recognize their options for safeguarding and building their assets. In this module, you'll learn about different types of accounts and account features at financial institutions, such as banks or credit unions. Next, you'll learn to emphasize the importance of short-term savings and retirement savings. Last, you'll learn to identify opportunities for clients to take advantage of opportunities to increase income through income tax credits.
Learning Objectives
By the end of this module, counselor will be able to:
- Comprehend key attributes of different banking accounts available at a bank or credit union, including fee structure and access to funds.
- Explain the importance of establishing an emergency fund and short-term saving funds for large purchases.
- Explain the importance of saving for retirement and the benefits of tax-incentivized accounts.
- Identify the tax credits for which clients may be eligible and how to apply for them.
Housing Affordability
Module Summary
To assist clients with housing options, housing counselors can help clients determine what type of housing may be most appropriate depending on their circumstances. In this module, you'll learn to calculate housing and debt-to-income ratios using information about income and credit. You'll also learn to evaluate the benefits and drawbacks of renting versus owning a home, including scope of payments, upfront costs, and tax implications.
Learning Objectives
By the end of this module, counselor will be able to:
- Evaluate various housing options for a client when summarizing the costs and benefits of renting versus purchasing a home.
- Apply knowledge regarding the funds a homeowner needs at the close of escrow for a home purchase and the funds a renter must come up with to sign a lease.
- Calculate a client's maximum housing payment, including PITIA for mortgages and rent/insurance for renting.
- Determine annual and monthly income for clients with various pay schedules and incomes and determine expenses based on documentation provided and a credit report.
- Calculate a client's back-end ratio to determine if high debt is an obstacle to meeting housing goals.
- Apply knowledge of the Four C's of Credit (character, capacity, capital, and collateral) to client information to predict whether a client is likely to be approved for a mortgage loan or rental housing application.
Module Summary
Once clients have a better understanding of their financial ability to afford housing, housing counselors can provide additional information to help them make an informed decision about their housing options. In this module, you'll learn about different types of mortgages and related costs, including mortgage insurance. You'll also learn to identify funds available to potential homebuyers for down payment assistance, as well as sources of rental assistance and other resources available to future tenants.
Learning Objectives
By the end of this module, counselor will be able to:
- Apply an understanding about the different types of mortgage loans that may be used by a client to purchase a home and counsel the client on which types of mortgage loans may be appropriate for use given the client's specific circumstances.
- Apply knowledge of how FHA and private mortgage insurance works to discuss the costs and benefits of these options with a client.
- Apply knowledge of down payment and closing cost assistance programs to analyze a client's circumstances, income, and overall credit profile to determine eligibility for local mortgage and down payment assistance programs, and be able to determine if financing can be layered with HUD/FHA products.
- Apply knowledge of HUD and local tools available when providing a client with information about the criteria and eligibility of affordable rental housing or assistance programs available, including Section 8.
Fair Housing
Module Summary
It is important for housing counselors to understand the basics of fair housing and know what is protected by the Fair Housing Act, or FHA, in order to inform and empower clients effectively. In this module, you'll learn about the history of housing discrimination, key provisions of the FHA, and basic terms and concepts necessary for identifying potential violations of fair housing law.
Learning Objectives
By the end of this module, counselor will be able to:
- Comprehend the connection between the history of civil rights and discriminatory practices in the financial and housing industry, as well as the early role of the federal government and banks.
- Comprehend key provisions of the Fair Housing Act and the impact of the law when discussing client's rights under the Fair Housing Act.
- Comprehend fair housing terms and concepts when discussing ways to identify and overcome violations of fair housing laws, including understanding of the seven protected classes.
- Identify which entities are subject to and which entities are exempt from compliance with fair housing laws.
Module Summary
Housing counselors have a responsibility to understand the Fair Housing Act, to be able to recognize signs and evidence of potential housing discrimination, and to promote client awareness about fair housing requirements. It is necessary for housing counselors to be able to give clients information on how to file a fair housing complaint through HUD or through state and local programs that handle such complaints. To work with clients seeking FHA subsidized housing or unsubsidized housing, housing counselors need to understand what "affirmatively furthering fair housing" means and participate in housing counseling agency efforts to affirmatively further fair housing.
Learning Objectives
By the end of this module, counselor will be able to:
- Identify state and local resources for fair housing enforcement available to clients confronted with a fair housing violation.
- Demonstrate how to report a violation of fair housing laws or requirements to empower a client to file a complaint.
- Comprehend common barriers to fair housing to identify signs or evidence of housing discrimination and develop a marketing plan to address impediments.
- Employ methods to promote a client's awareness of fair housing and apply knowledge of the current and proposed rules for the commitment of housing counseling agencies to affirmatively further fair housing.
Homeownership
Module Summary
To assist clients preparing for homeownership, it is important for housing counselors to understand the homebuying process, including financial components, homeowner responsibility, and mortgage regulations. In this module, you'll learn how to evaluate clients' readiness to purchase a home. You'll also learn about professionals involved in the selection and purchase of a home, as well as the financing process. Then, to help clients protect themselves against abusive practices, you'll examine various mortgage documents and regulations in the lending industry. Lastly, you'll learn about how clients can protect their property and investment by purchasing homeowners insurance.
Learning Objectives
By the end of this module, counselor will be able to:
- Evaluate a client's readiness to purchase a home through discussion of income, credit, savings, and homeowner responsibility.
- Demonstrate knowledge about the process of selecting and purchasing a home, as well as the team of professionals needed.
- Comprehend the process involved in obtaining financing, including the selection of a lender and understanding of loan products.
- Apply knowledge of common abusive lending practices and loan scams to help the client avoid similar situations.
- Apply knowledge of mortgage regulations and lender disclosures, including the Real Estate Settlement Procedures Act (RESPA), Truth in Lending Act (TILA), Good Faith Estimate (GFE), and Equal Credit Opportunity Act (ECOA) to a discussion about how these laws relate to a client's specific circumstances.
- Evaluate a client's completed Uniform Residential Loan Application (Form 1003) for any general deficiencies.
- Explain insurance terms and concepts of at least three types of insurance policies to be able to identify the risk that is mitigated by each type of insurance policy.
Module Summary
After home purchase, clients may seek counseling to ensure successful homeownership and home retention. In this module, you'll learn about the importance of continued financial management in order to make property-related payments on time. You'll also learn about preparing plans for home maintenance and repair. To help clients create a safe living space, you'll learn methods to reduce risk of accidents in the home and tips to create a plan for emergencies or disasters. Additionally, you'll explore strategies for energy efficiency to reduce environmental impact and home maintenance costs. Lastly, you'll learn about financing options for home improvement, such as securing a home equity loan or refinancing, and about the process of selling a home.
Learning Objectives
By the end of this module, counselor will be able to:
- Apply knowledge of the consequences related to not paying property taxes, HOA payments, or community assessments on time when counseling on ways to maintain client's property rights.
- Prepare a maintenance plan for at least one major household system including the system's life cycle, use, and repair strategies.
- Discuss with a client specific energy efficient strategies that may be employed by a client.
- Apply knowledge of safety-related strategies for the interior and exterior of the home when discussing with a client how to promote a safe living environment, reducing risk of accidents and impact of disasters.
- Create an emergency preparedness plan to assist a client in coping in the event of a disaster.
- Apply knowledge of specific types of home improvement financing options, including FHA 203k and HELOC, to counsel a client on how to apply for financing to conduct repairs or renovations on the client's property.
- Assess a client's options to refinance an existing mortgage using the client's credit report, recent mortgage statements, estimated property value, and an applied knowledge of available loan programs.
- Apply knowledge of the home sales process to prepare clients to avoid predators and select professionals to support the process.
Avoiding Foreclosure
Module Summary
Clients facing the daunting prospect of foreclosure are in crisis mode. They seek assistance with handling past due bills, determining if they can afford their home in the years to come, and working with servicers to request retention options to remain in their homes. In this module, you'll learn about key reasons for foreclosure and industry practices that contributed to the most recent foreclosure crisis, regulatory changes in the mortgage industry created to protect consumers, basic types of foreclosure procedures, and options available to a client facing foreclosure.
Learning Objectives
By the end of this module, counselor will be able to:
- Demonstrate comprehension of the events leading up to the most recent increase in foreclosure rates by naming three mortgage industry practices that increased rates of mortgage default by borrowers.
- Demonstrate comprehension of recent regulatory changes and nationwide legal settlements that may help a client avoid mortgage default and foreclosure.
- Apply knowledge of key foreclosure-related documents for both a judicial and non-judicial process when discussing the foreclosure process with a client.
- Evaluate a client's financial situation and reason(s) the client is facing foreclosure.
- Apply knowledge of different options available to a homeowner facing foreclosure such as establishing an emergency budget, helping to determine if the client should stay in the home, and the workout request process.
- Apply knowledge of payment assistance programs describing common attributes of those programs to clients seeking information.
Module Summary
To fully support clients who are struggling with mortgage payments, foreclosure counselors regularly review retention strategies and often request loan modifications, forbearance agreements, or other loss mitigation options. In order to determine which option is best suited for each client, counselors must be familiar with mortgage servicing processes and loss mitigation requests. In this module, you'll learn about different workout options and the process to help a client with a loss mitigation request. You'll also learn about mortgage default scams and reporting methods.
Learning Objectives
By the end of this module, counselor will be able to:
- Apply knowledge of the Making Home Affordable program and options such as HAMP, HARP, and principal reduction programs, as well as state-funded and proprietary programs, when assessing a client's circumstances for foreclosure prevention options.
- Demonstrate knowledge of the necessary forms and requirements for a mortgage lender loss mitigation package.
- Apply knowledge of HOPE LoanPort, including how to upload a client's loss mitigation packet and track its progress.
- Evaluate a client's information to better discuss appropriate loss mitigation options for a client whose loan is insured by FHA.
- Apply knowledge of mortgage default scams to describe ways to avoid these scams and where to report being a scam victim.
Module Summary
If clients decide to leave or are unable to maintain their homes, housing counselors can help by providing options and resources. In this module, you'll learn about the costs and consequences of disposition options such as foreclosure, short sale, and deed-in-lieu. You'll also learn about the steps involved in transitioning away from the home, through foreclosure or other methods, and programs that can assist in the process.
Learning Objectives
By the end of this module, counselor will be able to:
- Explain the costs and consequences of a foreclosure (judicial and non-judicial), short sale, or deed-in-lieu.
- Analyze a client's information if the client seeks to transition away from homeownership, demonstrating knowledge of programs like HAFA and FHA cash-for-keys.
- Apply knowledge of the foreclosure timeline, processes, and next steps to occur if a client is unable to stay in the home, devising appropriate action steps to assist the client in recovering from a mortgage default as soon as possible.
Tenancy
Module Summary
Whether clients seek counseling to transition away from homelessness or to prepare to purchase a home in the future, housing counselors can assist them in securing affordable rental housing. In this module, you'll learn about concepts associated with the execution and termination of a lease agreement, the responsibilities of tenants and landlords regarding property maintenance, and steps to resolve disputes between landlords and tenants. You'll also learn about renters insurance.
Learning Objectives
By the end of this module, counselor will be able to:
- Comprehend rental housing counseling topics, which include counseling regarding future homeownership opportunities, seeking affordable rental housing, assisting displaced residents, and providing referrals to other housing services.
- Demonstrate knowledge of lease terms and concepts by describing to a client the impact a lease has on the client's right to the use and enjoyment of the leased property, including negative impacts of early termination.
- Apply knowledge of common maintenance requirements found in a tenancy lease when reviewing a client's responsibilities to maintain appliances, walls, and other physical assets within a leased property.
- Employ conflict resolution strategies necessary to assist in the amicable resolution to client's "tenant/landlord" disputes.
- Comprehend the importance of renter insurance coverage and the purpose of maintaining a policy.
Module Summary
Due to any number of financial hardships, clients may face the unfortunate prospect of eviction. In this module, you'll learn about the rental eviction process and steps clients can take to avoid eviction. You'll also learn about options for alternative housing, such as emergency shelters or transitional housing, if moving becomes necessary.
Learning Objectives
By the end of this module, counselor will be able to:
- Analyze a client's rental delinquency, assisting the client to draft action steps that may lead to the avoidance of eviction.
- Apply knowledge of the basic eviction process, general timelines, and associated documents to assist a client to avoid eviction by better understanding the process.
- Apply knowledge of resources to help client find housing after an eviction is finalized.
Knowledge Assessment – Quick Facts
- Available since July 01, 2019
- Optional
- Free
- Not limited to housing counselors
- Results are designed to help counselors focus their studies
- Completion of the Knowledge Assessment does not guarantee certification
To further assist counselors in preparing for the HUD Housing Counselor certification exam, the HUD Office of Housing Counseling (OHC) has launched a new, free HUD Certified Housing Counselor Knowledge Assessment.
The Knowledge Assessment does not replace or replicate the existing practice exam in style, format, or length, but does:
- Provide candidates with more detailed feedback
- Offer insight into the rationale behind correct and incorrect answers
- Recommend topics for further study
- Link questions to training content
- Help candidates identify areas of strength and weakness for continued study
Unlike the HUD Housing Counselors Certification Exam, the Knowledge Assessment poses questions at three levels of difficulty. By reviewing the results of this type of test, learners can assess their knowledge and focus their studies where there may be knowledge gaps. Within each level of difficulty, performance on questions answered correctly determines the feedback provided.
There is no cost for the Knowledge Assessment, and you are not required to be a housing counselor or be employed by a housing counseling agency to take it.
Practice Exam – Quick Facts
- Available since July 5, 2017
- Optional
- Free
- Not limited to housing counselors
- Practice exam is not scored
- Feedback includes recommendations for further study by topic
- Completion of practice exam does not guarantee certification
In addition to the training materials, a practice exam is available to help prepare for and pass the HUD Housing Counselor Certification Exam. Developed to meet the same knowledge and skills proficiencies as the certification exam, the practice exam is offered in a format similar to the certification exam and poses similar questions, but does not replicate any questions from the certification exam.
There is no cost for the practice exam, and you are not required to be a housing counselor or be employed by a housing counseling agency to take it.
Feedback and Scoring
The practice exam is designed to give candidates a feeling for the format and style of test questions and the breadth of the subject matter in the test (90 questions that are not broken into smaller stand-alone sections). It is delivered in a similar format to the certification exam. The practice exam does not provide numeric scoring because performance on the practice exam does not guarantee passing results on the certification exam.
Upon completion, you will receive a summary page with feedback and recommendations for further study by topic. Please take note of the summary page, as you will not have repeat access to the results. The recommendations are based on how well candidates perform in each content area of the examination:
- Areas in which candidates perform well receive feedback that some additional review is recommended for continued success;
- Areas in which performance was marginal receive feedback that additional study is needed for moderate improvement; and
- Areas in which performance was weak receive feedback that significant study is needed for considerable improvement.
Background
HUD published the Final Rule for Housing Counseling Certification in the Federal Register on December 14, 2016, revising the regulations governing HUD's Housing Counseling Program, 24 C.F.R. Part 214. This rule implements statutory requirements that housing counseling required under or provided in connection with all HUD programs will be provided by HUD-Certified Housing Counselors.
Certification Exam – Quick Facts
- Available since August 1, 2017
- Not limited to housing counselors
- Available online and at testing centers nationwide
- Exam fee required
- Consists of 90 questions with a two-hour time limit
- Certification requires to both pass exam and work for an agency approved to participate in HUD's housing counseling program
To prepare for the Certification Exam, candidates can access training materials, choosing from study methods including an interactive online training course and a downloadable Study Guide, and take a practice exam. The testing methodology for the Certification Exam will include options to take the exam online or in person. Both options will be proctored.
Read HUD's Press Release announcing the New Housing Counseling Certification Requirements or refer to the HUD Exchange for more information about the final rule and certification requirements.
View the Final Rule documentation on the Federal Register
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HUD’s Office of Housing Counseling