Preparing to Meet with a Reverse Mortgage Counselor

Why See a Reverse Mortgage Counselor?

1. It may be mandatory. HECM or Home Equity Conversion Mortgages are insured by FHA and you are required to see a HUD-approved reverse mortgage counselor.
2. It is a good idea to meet with a HUD approved counselor even if you apply for a proprietary or other type of reverse mortgage for which there is no counseling requirement. Reverse mortgages are complicated lending tools and you should make sure you understand completely the pros and cons of taking on this type of loan.
3. You may find that you don't need to use a reverse mortgage to meet your needs. A reverse mortgage loan counselor will go over all of your alternatives as part of your session. Counselors are trained to explore options to a reverse mortgage and discuss those options with you.

How to Find a Counselor in Your Area

1. Ask your reverse mortgage lender. If you have already chosen a reverse mortgage lender to work with, your agent should be able to refer you to someone approved by HUD. Ask for two or three different names so you can compare schedules, locations, and fees.
2. Go to the HUD Website. You can search for a counselor in your area. If no counselor is available or if you cannot meet face to face, you may be able to conduct your session on the phone.
3. Contact one of the reverse mortgage advocate groups such as American Association of Retired Persons (AARP) at (800) 209-8085 or the National Council on Aging (NCOA) at (800) 510-0301.

Fees and Charges

1. If you are unable to afford counseling, you will not be charged. HUD makes free sessions available to those who qualify.
2. Only appropriate and normal fees can be charged. HUD-approved counselors are not allowed to overcharge their clients.
3. Fees have to be disclosed in advance. There should be no surprises. If you have any trouble, check the HUD Website to make a complaint.