Budget deal would eliminate federal funding for housing counseling

Lawmakers agreed to eliminate federal funding for housing counseling as part of last weekend's federal budget negotiations.

The HUD funding represents $600,000 dollars in counseling dollars for the state's foreclosure counseling network.

Julie Gugin, executive director of the Minnesota Home Ownership Center, says the cuts will have an immediate impact on the state's network of more than 50 nonprofit and government agencies. She said struggling homeowners looking for free foreclosure prevention counseling, first-time homebuyer education and reverse mortgage counseling will wait longer for help.

"It will affect their ability to get timely counseling," Gugin said. "The cut in this funding will impact our capacity to serve consumers, so there will be longer waits and less attention. We'll be able to spend less time with each individual household."

The cuts are set to take effect on October 1, if Congress approves the final bill and the president signs it.