What is housing counseling and is it available for free?

What the Law Says

Federal law recognizes housing counseling as a vital tool to help consumers make informed decisions and avoid predatory practices—especially during real estate settlement.

The Real Estate Settlement Procedures Act (RESPA) was enacted to ensure transparency and fairness in residential real estate transactions. While RESPA itself does not directly define 'housing counseling,' its foundational purpose—outlined in 12 U.S.C. § 2601—emphasizes protecting consumers from unnecessarily high settlement costs and promoting informed decision-making.

This congressional intent supports broader federal efforts—including HUD’s Housing Counseling Program—which provides free, impartial counseling services funded by the U.S. Department of Housing and Urban Development. These services are delivered exclusively by HUD-certified agencies and cover topics like homebuying, rental assistance, reverse mortgages, and foreclosure prevention.

Statutory Text

The Congress finds that significant reforms in the real estate settlement process are needed to eliminate abusive practices that have developed in some areas of the country.

— 12 U.S.C. § 2601 — Congressional findings and purpose

Statutory Text

The purpose of this chapter is to provide meaningful disclosures of settlement costs to purchasers and sellers of residential real property and to eliminate kickbacks and referral fees which tend to increase unnecessarily the costs of certain settlement services.

— 12 U.S.C. § 2601 — Congressional findings and purpose

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