Find Your HECM Reverse Mortgage Counselor

Taking out a reverse mortgage on your biggest asset is a very big decision. It makes sense to get advice and seek good counsel. For this reason, the government has made counseling a mandatory part of the HECM reverse mortgage process. A reverse mortgage can change your life. You just need to make sure it changes for the better! A good counselor will guide you through the reverse mortgage process and help you understand this important lending tool.

About HECM

HECM stands for Home Equity Conversion Mortgage. HECM (pronounced Heck'em) is the reverse mortgages backed by the US Department Of Housing And Urban Development (HUD). Also known as a HUD reverse mortgage, they represent about 90% of all reverse mortgage loan fundings. The Federal Housing Administration (FHA), under the HUD umbrella, insures HECMs. Therefore, HECMs follow FHA loan amount limitations. Your HECM loan application will not be underwritten without proof you have seen a counselor.

HUD Counselors Are Well Trained

HUD counselors must pass the HECM exam. They must be very familiar with reverse mortgages and be able to discuss alternatives with potential borrowers. Counselors follow a set, approved curriculum that can help you make the tough decisions you need to make, such as which type of equity distribution payment you need and which is the best reverse mortgage rate. You should be confident and informed after your mandatory counseling session.

Three Ways to Find a HUD Counselor

A reverse mortgage lender will likely know the HUD counselors in your area. They may have even worked together in the past. If your reverse mortgage lender does not have a relationship with a counselor in your area, he or she will most likely be able to help you find someone. If you are not yet working with a reverse mortgage lender, you can easily find someone reputable here.

You can visit the HECM Counseling Agencies Web page. Since you may not know the name of the agency in your area that offers counseling, sort the search results by your city or state.
Senior advocacy groups such as AARP and the National Council On The Aging (NCOA) provide education and advice to members. Many groups have foundations dedicated to reverse mortgage issues. If you are a member of one of these groups or a different senior advocacy group, you may want to contact a representative to help you find a HUD counselor.

Be Prepared

Before you meet with a HUD counselor or a reverse mortgage lender, know your financial situation. Prepare a budget and a list of your debts. You may also want to read articles in the Best Reverse Mortgage learning center. (Follow this link. You will find the learning center in the Reverse Mortgage Resource Center box mid way down on the right). Educate yourself there and make a list of any questions or concerns that come up.