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Reverse Mortgage Counseling
Money Management International (MMI) announced that as of July 1st, 2009 it will not charge clients for reverse mortgage counseling. The company believes it has sufficient grant funds to cover expenses until at least October 2009, when HUD grant funds will be available.
MMI will limit capacity to about 3,500 sessions each month, due to anticipated high demand, but all seniors who call MMI by phone or in any of its branches will receive reverse mortgage counseling free of charge. MMI will be on every reverse mortgage counseling list given to a client.
HUD requires that homeowners interested in pursuing a HECM receive information about reverse mortgages from a counselor. This ensures that homeowners fully understand the implications of a Reverse Mortgage on their home before they commit, and to ensure that the lender is offering them the most suitable loan for their specific circumstances. The counselor must adhere to all of FHA’s guidelines and provide the potential borrower information in a reverse mortgage counseling session, tailored to the unique financial circumstances of the household taking a reverse mortgage.
Reverse Mortgage Counseling Request
The Federal Housing Administration requires the prospective borrower to initiate the request for reverse mortgage counseling on their own, without the guidance of a lender. The lender must provide a list of reverse mortgage counseling agencies to the borrower. Counselors must review and document a client’s unique financial situation as well as to document the fulfilled requirements.
The lender may not contact a counselor or counseling agency to refer a client before, during, or after the reverse mortgage counseling session is completed. They may not discuss a client’s personal information, including the timing or scheduling of the reverse mortgage counseling, or request information regarding the topics covered in a counseling session. HECM counseling must be provided by an independent third party that is not associated with the mortgage transaction and borrowers must initiate communication with the reverse mortgage counseling agency independent of the lender.
Reverse Mortgage Counseling Agencies
Reverse Mortgage lenders must also provide all clients with a list of at least ten HUD-approved reverse mortgage counseling agencies that can provide HECM counseling. At least five of these must be in the local area of the borrower, with at least one agency located within a reasonable driving distance for the purpose of face-to-face counseling.
The counseling requirements are in place for the protection of both the borrower and the lender, so that all parties have a thorough understanding of the circumstances surrounding the loan, the details of the agreement and the future life of the loan.
If you would like more information, please call (866) 683-3690 or complete our online Reverse Mortgage Calculator. Thank you for visiting information about reverse mortgage counseling.
Tags: aarp reverse mortgage counseling, hud hecm counselors, HUD reverse mortgage counselors, reverse mortgage counseling services
