Zillow, HUD partner on housing counseling initiative

Zillow and the Department of Housing and Urban Development are teaming up to promote homeownership education for underserved communities.

With the new agreement, the real estate brokerage will feature advertisements for HUD's "Let's Make Home the Goal" campaign on its digital platforms. First launched in mid 2023, the initiative has so far reached 5 million consumers in 15 media markets. The support of Zillow now expands the coverage to 8 million potential homeowners in 52 markets.

Let's Make Home the Goal aims to increase awareness of HUD-certified housing counseling services for new buyers among previously underserved populations. 

The partnership with HUD marks another development in Zillow's business strategy, particularly its growing focus on the mortgage lending segment. In the Seattle-based company's second-quarter earnings call, its leaders emphasized the growing importance of the Zillow Home Loans unit, which doubled origination volume from a year earlier.

"Partnering with HUD on their 'Let's Make Home the Goal' campaign and increasing access to quality credit counseling services is an important step to help bridge the homeownership gap and build generational wealth for more families," said Jennifer Butler, Zillow's vice president of government affairs, in a press release.

The education and access to counseling will provide the know-how for many aspiring homeowners to buy their first home and generate wealth, HUD said.

"Every day, HUD's counselors provide thousands of Americans with trusted advice about buying a home, avoiding foreclosure and locating and sustaining affordable housing. But we know we can help even more people," added department Acting Secretary Adrianne Todman. 

Housing market trends, including the mortgage lock-in effect, means lending companies need greater outreach to the previously underserved to develop a future customer base, industry leaders have underscored. 

Alongside the agreement with Zillow, HUD also announced a finalization of rules that will expand certified counselors' ability to provide services. With the update to the Modernizing the Delivery of Housing Counseling Services rule, HUD-approved providers will be permitted to communicate with clients virtually or by phone. 

The agency expects the move to open up services for people who face challenges in arranging in-person meetings due to language, distance or childcare needs, and also make it more efficient for HUD-approved counselors to assist clients. Feedback for a rule change showed a strong preference for the ability to open up assistance virtually or by phone. The regulation will go into effect Oct. 16.

The latest news comes after HUD issued several million dollars worth of grants to counseling programs around the country earlier this summer. Other recent moves by HUD aimed at increasing homeownership opportunities include updates to regulations last week aimed at increasing inventory of manufactured housing.