FHA:
AUS approval - you do not need to do anything - it is considered in the risk of the file. Follow your findings.

Manual Underwrite:

Credit Counseling/Payment Plan Participating in a consumer credit counseling program does not disqualify a Borrower from obtaining an FHA-insured Mortgage, provided the Mortgagee documents that:

one year of the pay-out period has elapsed under the plan;
the Borrower’s payment performance has been satisfactory and all required payments have been made on time; and
the Borrower has received written permission from the counseling agency to enter into the mortgage transaction.

USDA:
z 12 months of the pay-out period must have elapsed from the application date.
z The payment history must reflect all required payments have been made on time.
z Written permission from the counseling agency is granted to enter into the mortgage transaction and counselor recommendation of the borrower as a good credit risk.
z In addition, the Extenuating Circumstances guidelines must be followed if this is a manual underwrite.

FNMA/FHLMC:
This is taken into consideration in the risk of the file when findings are ran. Follow your findings.

What is the rule on a borrower who is enrolled in a consumer credit counseling service? I know a long , long time ago , they had to be out of the repayment plan before they could enter into a transaction . Just checking to see if anything has changed.