HUD certifies housing counselors around the country to provide homeowners with impartial education about reverse mortgages. Reverse mortgage counseling is a mandatory part of the reverse mortgage application process and is typically completed just after completing an application for a reverse mortgage.
Reverse mortgage counseling can be done over the phone or it can be done face-to-face with a regional agency.
After the counseling session, the counselor will mail a signed copy of the HECM Counseling Certificate to the homeowner. This certificate is presented to the lender with the reverse mortgage application. The loan application process cannot begin until counseling is completed and a fully executed counseling certificate is provided to the lender.
The cost of the counseling is typically $125, but the cost can vary. Lenders are not permitted to pay this fee for applicants. Homeowners can also contact the counseling agency to request a “hardship” approval to pay a reduced fee.
National Reverse Mortgage Counselors (phone-based)
|National Foundation for Credit Counseling (NFCC)||1-866-698-6322|
|Money Management International (MMI)||1-877-908-2265|
|AARP – available to members only||1-800-209-8085|
|National Council on Aging (NCOA)||1-800-510-0301|