Many reverse mortgage counselors are having trouble passing a test required by the Department of Housing and Urban Development. Only 995 counselors nationwide have passed the licensing test since it was revised last year, according to HUD.

Reverse Mortgage Test Is Difficult

“The test is intentionally difficult, but we believe it needs to be so because of the vulnerable population” who seek out reverse mortgages, a HUD spokesman told the Post and Courier. HUD made the licensing exam more difficult after numerous complaints that people who were providing counseling about reverse loans were not always well-informed.

Because of concerns about the difficulty of passing the test, HUD posted additional study materials online. But some experienced reverse mortgage counselors who have taken the test more than once still haven’t passed.

Reverse Loan Counselor Fails Test Repeatedly

Debbie Kidd, head of the Homeowner Resource Center at Family Services Inc. in North Charleston, S.C., who failed the test four times, told the Post and Courier, “It’s humiliating for me. I’ve done this for 20 years. … Why can’t we pass this test?”

Reverse mortgage counselors are required to pass the licensing exam. Because so many people are having a tough time passing the test, some areas are being left without counselors approved to discuss reverse home mortgages. Depending upon where you live it may be necessary to travel out of the local area to receive counseling face-to-face. Reverse mortgage loan counseling also can be done by phone.

Reverse Mortgage Counseling Is Required

If you’re in the process of applying for a reverse mortgage, you need to talk with a counselor. When choosing a counselor, find out if he or she has passed HUD’s new licensing requirements. Don’t assume that all counselors who work for a specific agency have passed the test.

This entry was posted on Monday, February 22nd, 2010 at 6:05 pm and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.