Counseling

It is mandatory to attend counseling in order to be eligible for a reverse mortgage (HECM or Home Keeper). The counselor must by employed by a nonprofit or public agency approved by the U.S. Department of Housing and Urban Development (HUD). The AARP Foundation Reverse Mortgage Education Project administers a National HECM Counselor Exam as a way of certifying counselors for HUD-approved HECM housing counseling agencies. HUD's National HECM Counseling Network consists of the exam's highest scoring counselors. These counselors area required to use loan analysis and comparison software that meets AARP's model specifications, in addition to following the project's counseling policies and procedures. Counseling generally takes one hour and can be completed either in-person or over the telephone (can requires two or more calls). The project's counseling is funded by HUD and is free to you

What to Expect

HECM Terminology

The counselor will cover all the different language and definitions that you see in literature received from a reverse mortgage lender of your choice

HECM Roles

Learn about the FHA's and Fannie Mae's involvement with the reverse mortgage program. HECM Interest Rates - Different rates and how they tie into all the reverse mortgage program options available to you.

TALC Disclosure

The counselor will review how the disclosure that you will receive from your lender projects the future total cost of the loan

Proprietary Reverse Mortgage

If applicable the counseling agency will go over the options available with the Jumbo Reverse Mortgage Program

Home Keeper (Fannie Mae)

The counselor will review this program as an option depending on your current financial situation and which program benefits you the most

HECM Property Repairs

In the event your home needs some repairs you can still obtain a reverse mortgage. The counselor will review requirements, if applicable

Current Budget

A counselor may ask to review your current income and outgoing expenses to see what payment option will work best for you

Other Options

Keep in mind the counselors are not affiliated with any mortgage lender and should not recommend a lender to you. They may also review other financial options available to you to ensure that you are making the best financial decision for your current situation

Who can request counseling

Homeowners aged 62 and over can request counseling by calling a member of the National HECM Counseling Network. Alternately, a homeowner's authorized legal representative can request counseling. This person must be the owner's guardian, conservator, or must hold a durable power of attorney to act in this matter on the owner's behalf. The Reverse Mortgage Education Project and counselors do NOT accept counseling requests from anyone else on behalf of a homeowner

National HECM Counseling Network

• HECM counselors from the following agencies are permitted to provide face-to-face and telephone counseling nationally.
• 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