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What this task is

This task collects the counseling or education certificate issued after the borrower completes an approved homeownership education course. The certificate should:
  • Clearly identify the borrower,
  • Show the course provider or agency, and
  • Include the completion date and course name.
The course itself typically covers topics such as budgeting, mortgage basics, responsibilities of homeownership, and avoiding default.

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When this task is required

This task is required when the loan is being originated under certain special GSE or affordable housing programs that mandate homeownership education as a program condition. Examples include, but are not limited to:
  • Fannie Mae HomeReady
  • Freddie Mac Home Possible
The requirement generally applies when:
  • The borrower meets specific income, first-time homebuyer, or property type criteria defined by the program, and
  • The program guidelines explicitly state that homeownership education is mandatory.

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Why this task is required

Homeownership education is intended to:
  • Prepare borrowers—especially first-time or moderate-income buyers—for the financial and practical responsibilities of owning a home.
  • Improve the borrower’s understanding of loan terms, budgeting, and risk factors, which can reduce the likelihood of delinquency or default.
From the lender’s perspective, the certificate:
  • Demonstrates compliance with program-specific requirements for education and counseling.
  • Ensures the loan qualifies for requested pricing, MI, or secondary-market execution under the special program.
  • Provides evidence, in the loan file, that the borrower has completed the required educational component before or at closing.
Without this certificate, the loan may fail to meet eligibility criteria for the chosen program, potentially impacting pricing or deliverability.

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Documents needed to resolve this task

To satisfy this task, provide:
  • A homeownership education or counseling certificate that:
    • Identifies the borrower by name,
    • Shows the course provider or agency (for example, an approved HUD or GSE partner), and
    • Includes the date of completion and course title or designation.
  • If the program or lender has a list of approved providers, ensure the certificate comes from one of those eligible agencies.
These documents allow the underwriter to document program compliance and retain the required evidence for any post-closing review or audit.