What level of counseling is required for borrowers with over 55 percent DTI?
Borrowers with back-end ratios at or above 55 percent must agree to meet with a counselor from a HUD-approved housing counseling agency or a National Foreclosure Mitigation Counseling (NFMC) participating agency to create an action plan that includes steps and a timeline to eliminate unnecessary debt, minimize expenses, increase income and create savings. The action plan will also establish a follow-up schedule with the counselor. A detailed protocol describing the required components of this new “Level Four” counseling within the NFMC program is posted on the Internet at http://www.hud.gov/offices/hsg/sfh/hcc/hcprotocol.pdf.
