The FHA requires that all borrowers on a reverse mortgage loan receive mandatory reverse mortgage counseling from a HUD approved HECM counselor.
HUD has approved agencies around the country to conduct reverse mortgage counseling sessions. Counseling can be done face-to-face or by phone.
HECM counselors will discuss program eligibility requirements, financial implications and alternatives to obtaining a HECM. They will also discuss provisions for the reverse mortgage becoming due and payable. Upon the completion of HECM counseling, you should be understand how reverse mortgages work and be able to make an independent, informed decision of whether this product will meet your needs. You can learn more by requesting to receive a free information kit and video at no obligation.
After a borrower completes the session the counselor will mail a certificate which certifies completion of the required counseling session.
Currently the maximum amount that a counseling agency can charge the borrower is $125. Cost vary and some agencies charge less. 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.