HUD Counseling

Increasing demand for HECM reverse mortgages for by senior citizens, has put pressure on the counseling industry to meet the demand for the required counseling. To make sufficient quality Home Equity Conversion Mortgage (HECM) counseling available, HECM counselors from the below agencies are permitted to provide face-to-face and telephone counseling nationally. Please contact them to obtain HECM counseling.

National Foundation for Credit Counseling (NFCC) - 1-866-698-6322

Money Management International (MMI) - 1-877-908-2227

American Association of Retired Persons (AARP) - 1-800-209-8085

To Find Local HUD Information by city and state go to this link:

http://www.hud.gov/local/index.cfm

Here are answers to some common questions about reverse mortgage/HECM counseling.

1. Why do I need counseling?
The U.S. Department of Housing and Urban Development (HUD) requires a certified counseling session for a federally-insured reverse mortgage, also known as a home equity conversion mortgage (HECM).

2. Does everyone need counseling?
Reverse mortgage borrowers choosing the federally-insured reverse mortgage are required to get counseling before application.

Some lenders may first suggest that you speak with their own consultants to learn about reverse mortgage options, which is fine. But official counseling from an independent HUD-approved counselor (like us) is still required.

3. What will the counseling session entail?
In reverse mortgage counseling, you'll get information on the pros and cons of the reverse mortgage. You'll also discuss your other options.

You'll receive a projection of how much you can expect to receive from a reverse mortgage.  And you'll compare the payout terms available to you. It'll take about an hour. More if you have several questions.

4. What do I need to bring to my counseling session?
Before you do your counseling session, you may want to make some notes about how much money you're making and how much your expenses are.  You don't need to provide your actual pay stubs or bills or any other documentation.

You'll also want to know if there are any liens on your house.

If a lender has given you a projection of your reverse mortgage payout, you may want to have it available as well, although it's not required. 

5. What is a certificate of HECM counseling?
A certificate of HECM counseling is written proof that you've received counseling.

The certificate cannot be provided until your counseling is completed. In order to process your application, your lender will have to have a faxed or emailed copy of the certificate signed by us, your reverse mortgage counselor.

6. What if I'm acting as a legal guardian or have power of attorney?
A legal guardian/power of attorney is required to be counseled.

More Questions:->

If you have more questions a REMALO Member  will be glad to assist you. 

Click here for your state and town nearest you.  Or email us info@remalo.org call 800-242-5085.

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