Comments on: HUD — Lender-Funded Reverse Mortgage Counselors Just Fine http://www.bestreversemortgage.com/reverse-mortgage/hud-lender-funded-reverse-mortgage-counselors-just-fine/ The Unofficial Guide to Reverse Mortgages Fri, 29 Aug 2008 18:21:16 +0000 http://wordpress.org/?v=2.6 By: Gloria de Gaston Boone http://www.bestreversemortgage.com/reverse-mortgage/hud-lender-funded-reverse-mortgage-counselors-just-fine/#comment-6253 Gloria de Gaston Boone Tue, 13 May 2008 21:43:20 +0000 http://www.bestreversemortgage.com/reverse-mortgage/hud-lender-funded-reverse-mortgage-counselors-just-fine/#comment-6253 Oh, BTW, I understand that the equation of "no loan = no fee" means more than a counselors expertise and time; it is also a very very strong influence for the counselor to paint a rosy picture for the borrower. And, I don't want that......as a lender, I don't want to be putting any senior in a financially terrible place. Gloria Oh, BTW, I understand that the equation of “no loan = no fee” means more than a counselors expertise and time; it is also a very very strong influence for the counselor to paint a rosy picture for the borrower.

And, I don’t want that……as a lender, I don’t want to be putting any senior in a financially terrible place.

Gloria

]]> By: Gloria de Gaston Boone http://www.bestreversemortgage.com/reverse-mortgage/hud-lender-funded-reverse-mortgage-counselors-just-fine/#comment-6252 Gloria de Gaston Boone Tue, 13 May 2008 21:40:50 +0000 http://www.bestreversemortgage.com/reverse-mortgage/hud-lender-funded-reverse-mortgage-counselors-just-fine/#comment-6252 What's all the fuss about? HUD has been paying the fee for the counselors; but then it stopped because they said they ran out of funds and required the lender to pay. Well, that didn't work so well because lenders became sort of frothy at the mouth. So, now they want to pass the cost on to the borrower to be paid at closing....and as you said "no loan = no fee", but the counselors time and expertise have been used. HUD NEEDS TO GO BACK TO PAYING. ALL THE ADVERTISING FOR YEARS HAS CLAIMED THAT THERE IS "FREE" MANDATORY COUNSELING. THIS HAS BEEN A BIG "TO-DO", AND SELLING POINT WITH THE BORROWER. Surely if the Congress and President can find the billions to carry on a war, they can find a few million a year to pay these measley $125 counseling fees. 400,000 loans X $125 = $50,000,000. Phish, a drop in the bucket. And very very small compared with the 2% FHA insurance premium...don't you think? Gloria What’s all the fuss about? HUD has been paying the fee for the counselors; but then it stopped because they said they ran out of funds and required the lender to pay. Well, that didn’t work so well because lenders became sort of frothy at the mouth. So, now they want to pass the cost on to the borrower to be paid at closing….and as you said “no loan = no fee”, but the counselors time and expertise have been used.

HUD NEEDS TO GO BACK TO PAYING. ALL THE ADVERTISING FOR YEARS HAS CLAIMED THAT THERE IS “FREE” MANDATORY COUNSELING. THIS HAS BEEN A BIG “TO-DO”, AND SELLING POINT WITH THE BORROWER.

Surely if the Congress and President can find the billions to carry on a war, they can find a few million a year to pay these measley $125 counseling fees. 400,000 loans X $125 = $50,000,000. Phish, a drop in the bucket. And very very small compared with the 2% FHA insurance premium…don’t you think?

Gloria

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