Whether you prefer to meet with a counselor face to face or over the phone, you can find one easily. In some cases, counseling can even be free! Here's how.

Where to Find the Best Reverse Mortgage Counselor

Reverse mortgage counseling is required with Home Equity Conversion Mortgages (HECMs). HECMs are government-backed reverse mortgages offered through the US Department of Housing and Urban Development (HUD) and insured by the Federal Housing Administration (FHA). These loans are often also called HUD Reverse Mortgages. Currently, HECMs are the most common type of reverse mortgage. They are readily available through nearly all reverse mortgage lenders.

Counseling is required with HECMs because reverse mortgages are complicated lending tools that are designed to provide financial relief to an often vulnerable portion of the population, seniors 62 and older. In order to protect seniors, HUD requires that counselors go through an extensive training program and pass a comprehensive HECM exam. Counseling can only be offered through a HUD-approved agency.

How to Find a HUD Trained Counselor

It is easy to find a counselor in your area to meet with face to face. Or, if you prefer, you can make an appointment to speak over the phone. Any of these three ways will connect you with a HUD trained and approved counselor.

1. A reverse mortgage lender maintains a roster of counselors. Because most of the reverse mortgage fundings are HECMs, experienced reverse mortgage lenders are HECM experts. You can first talk to a reverse mortgage lender about your financial situation to see if you qualify for a reverse mortgage. Then, through the lender, find a counselor. Contact a reverse mortgage lender now.

2. You can find HECM counseling agencies by location or name through the FHA's search tool. To find all of the agencies in a particular city, you would search by the city's name. Or, you can search for all of the agencies in specific zip code. Contact the nearest agency by phone or email to set up an appointment.

3. Senior advocacy groups, such as the AARP or the National Council on the Aging (NCOA) are very involved in consumer protection matters related to reverse mortgages. AARP established a Reverse Mortgage Education Project (AARP-RMEP) which has since been turned over to NeighborWorks America. AARP now concentrates on maintaining a network of HECM counselors. You can find one through the AARP, NCOA, or other senior advocacy groups.

Reverse Mortgage Counseling Can Be Free

Counseling agencies are allowed to charge a fee for their services. In 2009, the maximum charge allowed was $125. The fee must be based on your ability to pay and must be disclosed to you in advance. If you are unable to pay, you cannot be turned away. Free counseling is available. If you are required to pay something, it is possible to have the fee paid through the reverse mortgage loan proceeds and not out of your pocket. Reverse mortgage lenders are NOT allowed to pay the fee for you.

Renee Morgan

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