A California covered-loan borrower receives the Consumer Caution and Home Ownership Counseling Notice. Does receipt of that notice establish that the borrower has completed any separately required counseling?
Correct Answer
C) No; the notice recommends consultation, and any separate counseling requirement must still be checked
Section 4973(k) requires a notice recommending independent counseling; receipt is not evidence of a completed counseling session. Federal high-cost-mortgage rules may impose separate counseling duties. Neither an application nor the notice substitutes for those duties. Source: Cal. Fin. Code § 4973(k); 12 CFR 1026.34(a)(5)
Why This Is the Correct Answer
Section 4973(k) requires a notice recommending independent counseling; receipt is not evidence of a completed counseling session. Federal high-cost-mortgage rules may impose separate counseling duties. Neither an application nor the notice substitutes for those duties. Source: Cal. Fin. Code § 4973(k); 12 CFR 1026.34(a)(5)
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