Warner Joins Colleagues in Fighting Back Against HUD Cuts to Housing Counseling for Homeowners and Renters

WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA), a member of the Senate Banking, Housing, and Urban Affairs Committee, joined 20 of his Senate colleagues in calling on the Department of Housing and Urban Development (HUD) to undo dangerous policy changes made in the recently announced notice of funding opportunity (NOFO) for housing counseling, which would drastically narrow the activities eligible for funding under HUD’s housing counseling program. The NOFO makes several alarming policy changes, chief among them being the removal of prepurchase housing counseling from the list of eligible activities. “Pre-purchase counseling has been a cornerstone of HUD’s counseling program since 1968, created specifically to open the doors of homeownership to Americans who had long been shut out, and it remains just as essential today,” the senators wrote in a letter to HUD Secretary Scott Turner . “For first-time and low- to moderate-income buyers, this guidance is often the difference between a sustainable investment and a financially devastating one. Housing counselors are a community-level guardrail, and eliminating their funding doesn’t make the need disappear — it simply strips counselors of the federal resources to meet it.” The NOFO also places restrictions on post-purchase and delinquency counseling. While the NOFO lists these activities as eligible, reimbursement is restricted to government-backed mortgages – leaving homeowners with conventional mortgages facing delinquency or foreclosure without access to federally funded counseling. All of this harm is compounded by the fact that the NOFO was release seven months later than usual, meaning housing counseling programs were left without any federal funds for over half a year already. “The communities we represent depend on HUD-approved housing counseling agencies to serve as trusted guides through one of the most consequential financial decisions of families’ lives. Narrowing eligible counseling services and allowing funding gaps of this magnitude abandons Americans at the two moments they need help the most: when they are trying to buy their first home, and when they are at risk of losing it,” the senators concluded. “We urge HUD to immediately restore full funding eligibility for all pre-purchase, post-purchase, and delinquency counseling for borrowers with conventional and government-sponsored mortgages under this NOFO. The families and agencies counting on this program cannot afford further delays or uncertainty.” In addition to Sen. Warner, this letter was signed by Sens. Ruben Gallego (D-AZ), Angela Alsobrooks (D-MD), Michael Bennet (D-CO), Cory Booker (D-NJ), Catherine Cortez Masto (D-NV), Mazie Hirono (D-HI), Tim Kaine (D-VA), Mark Kelly (D-AZ), Andy Kim (D-NJ), Angus King (I-ME), Ben Ray Luján (D-NM), Jack Reed (D-RI), Jackie Rosen (D-NV), Bernie Sanders (I-VT), Adam Schiff (D-CA), Jeanne Shaheen (D-NH), Elissa Slotkin (D-MI), Chris Van Hollen (D-MD), Elizabeth Warren (D-MA), and Ron Wyden (D-OR). “The foundation of the American Dream is homeownership. But the reality is, too many prospective and vulnerable buyers are unprepared to maneuver through the complex and often confusing process of purchasing and keeping a home. CPLC is in full support of ensuring HUD-approved counselors be made available to help keep alive the American Dream. We must do all we can to avert the economic disaster foreclosure has on families and communities. Our nation’s housing crisis should not be compounded simply because Americans are denied access to an expert ally in homeownership,” said Alicia Nunez, President and CEO, Chicanos Por La Causa. “With first time homebuyers struggling to buy a home and with mortgage delinquencies rising, this is not the time for HUD to end Comprehensive Housing Counseling funding for pre-purchase housing counseling and private market delinquency counseling.  America’s housing consumers need the independent, personal help that housing counselors provide. HUD should not reduce the availability of trusted housing assistance, which will decrease access to sustainable homeownership and increase the risk of mortgage delinquencies and foreclosures,” said Bruce Dorpalen, Executive Director, National Housing Resource Center. “At a time when the path to homeownership is increasingly out of reach for the average American, HUD’s decision to gut funding for pre-purchase and delinquency counseling is a step in the wrong direction. NCST urges HUD to restore these vital resources; failing to do so leaves many first-time buyers and families in crisis without the professional guidance necessary to access and maintain homeownership,” said Sarah Edelman, Executive Vice President for Policy and Programs, National Community Stabilization Trust. “As the share of first-time homebuyers falls to record lows, now is not the time to eliminate funding for pre-purchase housing counseling that supports working families in attaining their dreams of becoming homeowners. Housing counselors are on the frontlines of unlocking homeownership, having delivered housing counseling and education to over 155,000 households and helping more than 42,000 purchase a home last year,” said Laura Arce, Senior Vice President for Economic Initiatives, UnidosUS . “UnidosUS urges HUD to restore the full scope of eligible housing counseling activities — including pre- and post-purchase counseling for all prospective and current homeowners and renters — so that Housing Counseling Agencies continue to serve over 1 million households nationwide annually in navigating their path to homeownership during the ongoing housing affordability crisis.” “The HUD Housing Counseling Program provides high-quality, tailored counseling services to low-income households. These services support finding affordable rental and homeownership opportunities, building financial literacy for stable tenancy, navigating the mortgage process, avoiding predatory housing debt and mortgage products, and preventing evictions and foreclosures. The program serves hundreds of thousands of clients annually, many of whom would not otherwise have access to these services due to limited resources. Counselors prioritize their clients’ financial security and safety, and the program is highly effective at helping families to stabilize their housing situation and build their assets. The proposed changes would cut off services to three-quarters of the counselors’ client base. At a time when so many households, particularly low-income families, are facing significant affordability challenges, we should be strengthening – not restricting – a program that helps households weather financial shocks and build long-term stability,” said Seema Agnani, CEO, National Coalition For Asian Pacific American Community Development . Read the full letter here and below. ###