According to the HLPA, any applicant receiving a high-cost loan is required to receive loan counseling from whom?

In the context of the Home Loan Protection Act (HLPA), which is designed to protect consumers taking out high-cost loans, counseling plays a crucial role in ensuring that borrowers understand the implications of their loans. The law mandates that any applicant for a high-cost loan must receive counseling from a nonprofit third-party organization.

This requirement ensures that the counseling is impartial and focused on educating borrowers about their rights and responsibilities, potential financial risks, and available alternatives. Nonprofit organizations are often better positioned to provide unbiased information without a conflict of interest, as they typically do not profit from loan origination or sales. This safeguard helps borrowers make informed decisions, thereby reducing the likelihood of abuse or predatory lending practices associated with high-cost loans.

While options such as licensed attorneys or financial advisors may offer valuable services, they are not the designated providers for this specific type of counseling under the HLPA. State housing authorities may play a role in broader housing issues, but they do not fit the specific requirement outlined in the HLPA for high-cost loan counseling.