About Reverse Mortgage Counseling
Reverse Mortgage Counseling or HECM counseling is required by HUD in order to obtain a Reverse Mortgage. You can attend your counseling in person at a local HUD approved counseling office or you can receive Reverse Mortgage Counseling by phone. Your Reverse Mortgage counselor is familiar with the basic Reverse Mortgage products. Reverse mortgage counselors are not loan officers nor do they represent any particular lender. They are an independent HUD approved counselor who has been trained in counseling to walk you through the basic tenets of a Reverse Mortgage.
What to Expect When You Attend Reverse Mortgage Counseling
The purpose of Reverse Mortgage counseling is to help you make an informed decision. Your counseling will last about one hour, and, depending on your questions, may take longer. Be sure to write down your questions for the counselor prior to the counseling session. Your Reverse Mortgage counselor will discuss the Reverse Mortgage program with you and review your alternatives. Your counselor will go over your budget to see if a Reverse Mortgage is the right vehicle to suit your needs. Counselors are not loan officers nor do they represent any particular lender; they are an independent HUD approved counselor. Your counselor will want to be sure you understand the parameters of the reverse mortgage and also the risks.
After your HECM counseling is finished, your Reverse Mortgage counselor will issue a HECM Counseling Certificate which your counselor will sign. You will also sign and date the certificate, (If you received HECM counseling by phone, your certificate will be mailed to you.) You will then provide this certificate to your Reverse Mortgage Specialist, and you will retain a copy. Once your Reverse Mortgage Specialist receives your HECM counseling certificate, the Reverse Mortgage process can begin and an appraisal of your home can be ordered.
NOTE: There is a fee for Reverse Mortgage counseling, typically $125-150. Check with each counseling agency regarding this fee as it may be waived if you can document that you have a financial hardship.
Attendees can include non-borrowing spouses and anyone on the title of the home.