4501.12: Homeownership education and landlord education for Home Possible® Mortgages 10/29/18

(a) Homeownership education

At least one occupying Borrower must participate in a homeownership education program before the Note Date, or the Effective Date of Permanent Financing for Construction Conversion and Renovation Mortgages, in each of the following instances:

For purchase transactions when all occupying Borrowers are First-Time Homebuyers, or
For any transaction when the credit reputation for all Borrowers is established using only Noncredit Payment References

Refer to Section 5103.6 for other requirements related to homeownership education.

(b) Landlord education (2- to 4-unit Primary Residences)

Purchase Transactions — At least one qualifying Borrower must participate in a landlord education program before the Note Date, or the Effective Date of Permanent Financing for Construction Conversion and Renovation Mortgages. Landlord education must not be provided by an interested party to the transaction, the originating lender or the Seller.A copy of a certificate evidencing successful completion of the landlord education program must be retained in the Mortgage file.
Refinance Transactions — Landlord education is not required but is recommended for Borrowers who have not previously attended a program.

(c) Post-purchase and Early Delinquency Counseling

The Seller, as Servicer, must provide (at no cost to the Borrower) Early Delinquency Counseling to all Borrowers who experience problems meeting their Mortgage obligations, in accordance with Sections 9101.2(c) and 9102.5(c).