Reverse Mortgage Counseling
Use the form below to search for a local reverse mortgage counselor by zip code.
National reverse mortgage counselors (phone-based)
| Phone based counselors | Phone |
|---|---|
| Smart Money Housing | 1-800-403-3807 |
| National Foundation for Credit Counseling | 1-877-881-2227 |
| Money Management International | 1-877-908-2227 |
| Credit Counseling Service (CCCS) | 1-800-251-2227 |
| AARP Counseling - available to members only | 1-800-209-8085 |
| National Council on Aging (NCOA) | 1-800-510-0301 |
SPOTLIGHT: FREE Reverse Mortgage Counseling:
In today's economy, seniors are facing unprecedented financial challenges. That's why Consumer Credit Counseling Service now offers reverse mortgage counseling at no charge
Counseling available by Phone or In Person
Enrique M. Juarez l HECM / Housing Manager l Counseling Department
emjuarez@cccsoc.org l www.cccsoc.org
1-877-715-2227
In efforts to better protect seniors and the reverse mortgage process, HUD has just released Mortgagee Letter 2009-10 to clarify counseling issues. HUD has 4 reasons for issuing the new Mortgagee Letter;
- to be certain that all borrowers initiate their own counseling
- to delineate the requirements of lenders in the counseling process
- to explain the role of the counselor in the documentation of the borrower's unique financial situation
- to make certain that everyone is using the new HECM Reverse Mortgage Certification of Counseling
Lenders are not to push borrowers into moving forward with the process, they want borrowers to proceed with the loan only when they have decided they are good and ready to do it and have made the effort to place the call on their own. We as a lender must give you a list of no less than 10 counseling agencies, 5 of which are mandated by HUD and include AARP and the National Council on Aging
Borrowers can elect to pay for reverse mortgage counseling at the close of their loan or under conditions of financial hardship, may qualify for free counseling but must request it when they contact the counselor and must be prepared to show evidence of financial hardship.
Counseling Checklist
Beofre you attend your counseling make sure to have these items handy...Calculator Loan Results > View Sample Document
The calculator loan results is an estimate of available reverse mortgage programs and summarizes margins, rates and principle limits.
Amortization Schedules > View Sample Document
An amortization schedule provides a year by year summery of what to expect in interest accrual, compound interest, available credit line, as well as net equity to be left in the estate. Actual interest charges and property value projections may vary from different programs or cash advances.
Good Faith Estimate > View Sample Document
The information provided below reflects estimates of the charges you are likely to incur at the settlement of your loan. The fees listed are estimated; the actual charges may be more or less.Your transaction may not involve a fee for every item listed. The numbers listed beside the estimates generally correspond to the numbered lines or sections contained in the HUD-1 Settlement Statement which you will receive at settlement. The HUD-1 Settlement Statement will show you actual cost for items paid at settlement.
TALC - Total Annual Loan Costs > View Sample Document
Explains that the cost of any reverse mortgage loan depends on how long you keep the loan and how much your house appreciates in value. Generally, the longer you keep a reverse mortgage, the lower the total annual loan cost rate will
be.
It's also important for you to know that the counselor will be using their own software to estimate your proceeds and loan costs. The estimate provided by the counselor is for illustration purposes only, is not an offer to lend nor can the counselor endorse any particular program or lender. If you would like a free set of these items emailed to
you please complete our online quote request found here
Guides / References
Your HECM counselor should provide you with the following guides...
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Use Your Home to Stay at Home™ (PDF file)
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The NRMLA Guide to Aging in Place (PDF file)
NRMLA, in partnership with the National Council for Aging In Place, has created this booklet on design ideas, useful products and how to find them, and professionals who can help plan and implement home modifications. |
What happens after Counseling?
After you have completed your counseling session you will be mailed a certificate of completion (view sample document). This Counseling certificate should be signed and returned to your lender if you wish to proceed with the processing of the loan. No 3rd party services may be ordered such as Appraisal, Title, Escrow until the lender has your signed certificate in hand
Counseling Articles of Interest
Counseling Latest Counseling News:
The new protocol that counselors must follow remains unpublished.
ML 2009-47 discusses the eligibility requirements to be placed on the Counselor Roster and remain eligible. HECM counselors who took and passed the exam on or before October 2, 2009, will automatically be included on the HECM Counseling Roster and remain there for three years. After three years, the counselor must retake and pass the exam to remain on the Roster.
The regulation requires counselors to apply for placement on the Roster using FHA Connection. Each counselor must create a user ID, which he or she will use to keep their profile information accurate.
Every counseling agency must have at least one "Application Coordinator" who certifies the employment of all HECM counselors within the organization. This will help keep the Counseling Roster displayed on HUD's web site updated.
Counselors can be removed from the Counseling Roster for up to one year. A complete list of reasons for which a counselor can be removed from the Roster is discussed in ML 2009-47. Any counselor who promotes, represents or recommends a specific lender can be removed.
Have a question about the Reverse Mortgage? If you or a family member would like a complete, no-obligation personal analysis please call Toll Free (888) 801-2762 or request free analysis