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Reverse Mortgage Counseling Requirements

The U.S. Department of Housing and Urban Development (HUD) certifies and approves reverse mortgage counselors nationwide to provide homeowners with impartial education about reverse mortgage loans. Counseling is a mandatory part of the application process and is typically completed before submitting a reverse mortgage application. It can be conducted in person or by telephone with a HUD-approved counselor.

After the counseling session, the counselor will mail a signed copy of the HECM Loan Certificate to the homeowner. This certificate must be presented to the lender along with the reverse mortgage application. While the loan process may begin prior to counseling, certain steps cannot proceed until the counseling certificate has been received.

The cost of counseling varies, and lenders are not permitted to pay this fee on behalf of applicants. Homeowners may contact the counseling agency to request a “hardship” approval for a reduced fee.

To view the list of National Reverse Mortgage Counseling Agencies, visit HUD’s official counseling directory.